Finance Act 2007 Changes - Intra-Community Acquisition of Goods

Amendment to Section 3A of the VAT Act (Intra-Community acquisition of goods)

Although provided for in the Sixth VAT Directive, Irish law did not ensure that an intra-Community acquisition arose where a supply was made by a person who is not, but ought to be, registered for VAT in another Member State. This gap potentially could have allowed exempt bodies to purchase goods from these unregistered persons at a rate lower than the corresponding Irish rate. This created a risk of tax revenue loss and of distortion of competition to the detriment of Irish suppliers.

Section 97 of the Finance Act extends the definition of intra-Community acquisition of goods to include the acquisition of goods from a person “obliged to be registered for Value Added Tax in a Member State”.

This has effect from 10 May 1997 - the date of passing of the Finance Act.