Finance Act, 1993

Amendment of section 8 (taxable persons) of Principal Act.

85.—Section 8 of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (1A) (inserted by the Act of 1992):

“(1A) (a) Where a person engages in the intra-Community acquisition of goods in the State in the course or furtherance of business he shall be a taxable person and shall be accountable for and liable to pay the tax chargeable.

(b) Subject to subsection (2), and notwithstanding paragraph (a), a person for whose intra-Community acquisitions of goods (being goods other than new means of transport or goods subject to a duty of excise) the total consideration for which has not exceeded and is not likely to exceed £32,000 in any continuous period of 12 months shall not, unless he otherwise elects and then only during the period for which such election has effect, be a taxable person:

Provided that where the provisions of subsection (1) apply to that person, this paragraph shall not apply unless the provisions of subsection (3) also apply to him.

(c) A person who is a taxable person by virtue of this subsection and who is a person referred to in paragraph (a) or (b) of subsection (3) shall be deemed to be a taxable person only in respect of—

(i) intra-Community acquisitions of goods which are made by him, and

(ii) any services of the kind referred to in subsection (2) which are received by him:

Provided that a person may elect that this paragraph shall not apply to him.

(d) A person who is a taxable person by virtue of this subsection and who is a person referred to in subsection (3A) shall be deemed to be a taxable person only in respect of—

(i) intra-Community acquisitions of goods which are made by him,

(ii) racehorse training services which are supplied by him, and

(iii) any services of the kind referred to in subsection (2) which are received by him:

Provided that a person may elect that this paragraph shall not apply to him.

(e) For the purposes of this subsection, where an intra-Community acquisition is effected in the State by—

(i) a Department of State or local authority,

(ii) a body established by statute, or

(iii) a person for the purpose of any activity specified in paragraph (vi), (vii), (xxii) or (xxiii) of the First Schedule,

the acquisition shall be deemed to have been effected in the course or furtherance of business.”,

(b) in subsection (2) (inserted by the Act of 1978)—

(i) by the transposition of that subsection into paragraph (a) thereof, and

(ii) by the addition of the following paragraphs:

“(b) A person who is a taxable person by virtue of this subsection and who is a person referred to in paragraph (a) or (b) of subsection (3) shall be deemed to be a taxable person only in respect of—

(i) any intra-Community acquisitions of goods which are made by him, and

(ii) services of the kind referred to in this subsection which are received by him:

Provided that a person may elect that this paragraph shall not apply to him.

(c) A person who is a taxable person by virtue of this subsection and who is a person referred to in subsection (3A) shall be deemed to be a taxable person only in respect of—

(i) any intra-Community acquisitions of goods which are made by him,

(ii) racehorse training services which are supplied by him, and

(iii) services of the kind referred to in this subsection which are received by him:

Provided that a person may elect that this paragraph shall not apply to him.”,

(c) in subsection (3) (inserted by the Act of 1992)—

(i) by the substitution of “Subject to subsections (1A) and (2), and notwithstanding the provisions of subsection (1)” for “Notwithstanding the provisions of subsections (1) and (1A)”,

(ii) in subparagraph (ii) of paragraph (c) by the substitution of “paragraphs (a), (c) and (d)” for “paragraphs (a), (c), (d) and (e)”,

(iii) by the deletion of paragraph (d), and

(iv) in the proviso to the subsection, by the substitution of the following paragraph for paragraph (ii):

“(ii) the provisions of this subsection shall not apply to a supply of the kind referred to in subsection (2).”,

(d) in subsection (3A) (inserted by the Act of 1982) by the insertion after “the supply of those services” of “and any intra-Community acquisitions of goods made by him and any services of the kind referred to in subsection (2) received by him”, and

(e) in subsection (5):

(i) by the insertion after “for which the election had effect is equal to” of “the sum of”,

and

(ii) by the insertion after “such goods or services” of “and the tax deductible under section 12 in respect of intra-Community acquisitions made by him during such period”.