11. Other provisions in relation to goods

Summary

This section covers provisions in relation to intra-Community acquisitions (ICAs).

It provides that persons who are accountable persons solely because they made an ICA of new means of transport or of excisable products are not treated as otherwise accountable, provided they pay the VAT that is due on the supply. This rule is necessary because persons are always accountable in respect of ICAs of new vehicles or excisable goods, regardless of the value of the supply, as the ICA threshold (€41,000) does not apply in these cases.

The section also provides that foreign traders do not have to register in respect of ICAs and subsequent supplies under triangulation arrangements.

Details

(1) Subsection (1) deals with intra-Community acquisitions of new means of transport, which are defined in section 2(1). An intra-Community acquisition of a new means of transport in the State is always taxable in the State. This means that any person (including a private individual) who makes such an intra-Community acquisition becomes an accountable person.

However, where a person has become an accountable person only as a result of the intra-Community acquisition of a new means of transport, this subsection provides that, once the VAT on the acquisition is paid (in accordance with section 79(2) for cars and section 79(3) for boats and planes), the person will not be required to comply with the other obligations of an accountable person under the Act.

(Under section 79(2), the VAT payable on a new motor vehicle must be paid at the time of registration of the vehicle in the State. Under Regulation 28 of the VAT Regulations 2010 the VAT on the intra-Community acquisition of a new boat/plane must be paid to Revenue within 3 days of bringing the aircraft or vessel into the State.)

(2) Subsection (2) covers acquisitions of excisable goods. An intra-Community acquisition of excisable goods in the State is always taxable in the State, and the €41,000 threshold for ICAs does not apply. This means that any person who makes such an intra-Community acquisition becomes an accountable person.

However, where a person has become an accountable person only as a result of the intra-Community acquisition of excisable products, this subsection provides that, once the VAT on the acquisition is paid (in accordance with section 79(4)), he or she will not be required to comply with the other obligations of an accountable person under the Act, such as registration and submitting returns.

(Under section 79(4), the VAT will be payable on the goods at the same time as the excise duty is being paid, and the recovery/collection rules that apply to excise also apply to the VAT.)

(Note that the duty suspension arrangements under the special scheme in section 92 do not apply to ICAs by persons who are only accountable because of the ICA.)

(3) Subsection (3) is linked in with the simplified arrangements that apply in triangulation cases. It covers the situation where a trader established in another Member State has made an intra-Community acquisition and a subsequent supply in the State. Normally, such a trader would be an accountable person and would be obliged to register in the State. However, provided the requirements of section 23 apply, the trader will not be regarded as an accountable person unless he/she opts to register for VAT in the State.

(4) Subsection (4) relates to the simplified arrangements for call-off stock under section 23A. It provides that a trader established in another Member State that transfers goods to the State in the circumstances provided for under section 23A will not be regarded as having made an intra-Community acquisition and subsequent supply of goods in the State. The trader will therefore not have an obligation to register for VAT in the State in respect of that transfer of goods.

Relevant Date: Finance Act 2020