Value-Added Tax (Amendment) Act, 1978

Amount on which tax is chargeable.

8.—The following section shall be substituted for section 10 of the Principal Act:

“10. (1) The amount on which tax is chargeable by virtue of section 2 (1) (a) shall, subject to this section, be the total consideration which the person supplying goods or services becomes entitled to receive in respect of or in relation to such supply of goods or services, including all taxes, commissions, costs and charges whatsoever, but not including value-added tax chargeable in respect of the supply.

(2) If the consideration referred to in subsection (1) does not consist of or does not consist wholly of an amount of money, the amount on which tax is chargeable shall be the total amount of money which might reasonably be expected to be charged if the consideration consisted entirely of an amount of money equal to the open market price:

Provided that in computing the amount on which tax is chargeable as aforesaid a deduction may be made for the open market price of second-hand movable goods given in exchange or part exchange for goods, whether new or second-hand, of the same kind.

(3) (a) If for any non-business reason the actual consideration in relation to the supply of any goods or services is less than that which might reasonably be expected to be received if the consideration were an amount equal to the open market price or there is no consideration, the amount on which tax is chargeable shall be the open market price.

(b) If the consideration actually received in relation to the supply of any goods or services exceeds the amount which the person supplying the goods or services was entitled to receive, the amount on which tax is chargeable shall be the amount actually received, excluding tax chargeable in respect of the supply.

(c) If, in a case not coming within paragraph (a), the consideration actually received in relation to the supply of any goods or services is less than the amount on which tax is chargeable or no consideration is actually received, such relief may be given by repayment or otherwise in respect of the deficiency as may be provided by regulations.

(4) The amount on which tax is chargeable in relation to a supply of goods referred to in paragraph (d) (ii), (e) or (f) of section 3 (1) or a supply of services by virtue of regulations made for the purposes of section 5 (3) shall be the cost, excluding tax, of the goods to the person supplying the goods or the cost, excluding tax, of supplying the services, as the case may be.

(5) The amount on which tax is chargeable in relation to services for the tax chargeable on which the recipient is, by virtue of section 8 (2), liable shall be the consideration for which the services were in fact supplied to him.

(6) Where a right to receive goods or services for an amount stated on any token, stamp, coupon or voucher is granted for a consideration, the consideration shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds that amount.

(7) Provision may be made by regulations for the purpose of determining the amount on which tax is chargeable in relation to one or more of the following:

(a) supplies of goods and services to which an order under section 8 (2A) applies,

(b) supplies of stamps, coupons, tokens or vouchers when supplied as things in action (not being stamps, coupons, tokens or vouchers specified in subsection (6)),

(c) supplies of goods or services wholly or partly in exchange for stamps, coupons, tokens or vouchers of a kind specified in subsection (6) or paragraph (b),

(d) supplies deemed, pursuant to subsection (3) or (4) of section 3, to be made to and by the persons therein mentioned,

and such regulations may, in the case of supplies referred to in paragraph (b), provide that the amount on which tax is chargeable shall be nil.

(8) (a) Where the value of movable goods (not being goods of a kind specified in paragraph (xii) of the Second Schedule) provided under an agreement for the supply of services exceeds two-thirds of the total consideration under the agreement for the provision of those goods and the supply of the services, other than transport services in relation to them, the consideration shall be deemed to be referable solely to the supply of the goods and tax shall be charged at the appropriate rate or rates specified in section 11 on the basis of any apportionment of the total consideration made in accordance with paragraph (b).

(b) Where goods of different kinds are provided under an agreement of the kind referred to in paragraph (a), the amount of the consideration referable to the supply of goods of each kind shall be ascertained for the purposes of that paragraph by apportioning the total consideration in proportion to the value of the goods of each kind provided.

(c) This subsection shall also apply to an agreement for the supply of immovable goods and, accordingly, the references in paragraphs (a) and (b) to an agreement for the supply of services shall be deemed to include a reference to such an agreement.

(9) (a) On the supply of immovable goods and on the supply of services consisting of the development of immovable goods, the value of any interest in the goods disposed of in connection with the supply shall be included in the consideration.

(b) The value of any interest in immovable goods shall be the open market price of such interest.

(10) In this section—

‘interest’, in relation to immovable goods, and ‘disposal’, in relation to any such interest, shall be construed in accordance with section 4 (1):

‘the open market price’, in relation to the supply of any goods or services, means the price, excluding tax, which the goods might reasonably be expected to fetch or which might reasonably be expected to be charged for the services if sold in the open market at the time of the event in question.”.