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Appendix II: Sixth VAT Directive Article 13

VAT Acts: 2025

Edited by:
Bloomsbury Professional
Publisher:
Bloomsbury Professional
Law Stated At:
10 April 2025

Exemptions within the territory of the country

B – Other Exemptions.

  • (d) the following transactions:
    • 1 the granting and the negotiation of credit and the management of credit by the person granting it;
    • 2 the negotiation of or any dealings in credit guarantees or any other security for money and the management of credit guarantees by the person who is granting the credit;
    • 3 transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments, but excluding debt collection and factoring;
    • 4 transactions, including negotiation, concerning currency, bank notes and coins used as legal tender, with the exception of collectors' items; "collectors' items" shall be taken to mean gold, silver or other metal coins or bank notes which are not normally used as legal tender or coins of numismatic interest;
    • 5 transactions, including negotiation, excluding management and safekeeping, in shares, interests in companies or associations, debentures and other securities, excluding:
      • documents establishing title to goods,
      • the rights or securities referred to in Article 5 (3);
    • 6 management of special investment funds as defined by Member States,

Appendix III: Value Added Tax Act, 1972 FOURTH SCHEDULE

Services that, where taxable, are taxed where received

  • (I) Transfers and assignments of copyright, patents, licences, trademarks and similar rights;
  • (Ia) hiring out of movable goods other than means of transport;
  • (ii) advertising services;
  • (iii) services of consultants, engineers, consultancy bureaux, lawyers, accountants and other similar services, data processing and provision of information (but excluding services connected with immovable goods);
  • (iiia) telecommunications services;
  • (iv) acceptance of any obligation to refrain from pursuing or exercising in whole or in part, any business activity or any such rights as are referred to in paragraph (I);
  • (v) banking, financial and insurance services (including re-insurance, but not including the provision of safe deposit facilities);
  • (vi) the provision of staff;
  • (vii) the services of agents who act in the name and for the account of a principal when procuring for him any services specified in paragraphs (I) to (vi).

Appendix IV: Functions of Management Companies and Trustees – UCITS

1. Functions of the Management Company

The management company manages the unit trust or investment company.

This involves:

  • making investment decisions and determining the strategy for the funds (this function can be and often is delegated to external investment advisers);
  • launching and marketing the funds and preparing documentation for investors including the prospectus and financial reports;
  • providing for the proper administration of the UCITS in accordance with the trust deed or memorandum and articles of association;
  • issue and redemption of units either through its own stock of units (managers' box) or through the creation or cancellation of units by the Trustee.

2. Functions of the Trustee

The trustee is responsible for the safe custody of the assets of the UCITS. Furthermore, the trustee must ensure that the UCITS is managed in accordance with the UCITS Regulations and the trust deed or memorandum and articles of association. The trustee must, inter alia, ensure that the registration of unitholders and investment purchases and sales are correctly carried out. More specifically, the trustee's functions are as follows:

  • settlement of all transactions entered into by the UCITS, including the arrangement of payment and receipt of monies for the acquisitions or disposal of any units or shares;
  • registration of securities held;
  • collection of all income, rights and bonuses attaching to the securities;
  • notification of all transactions to the manager and/or the directors;
  • provision of regular statements of the security position of the UCITS;
  • exchange of investments held by it for account of the UCITS;
  • delivery of investment sales for account of the UCITS;
  • opening and maintenance of any accounts in its own name for the UCITS and holding of all uninvested funds;
  • payment of all income on units;
  • creation and cancellation of shares or units;
  • provision of a report to be included in the annual report of the UCITS.

3. Administration Functions

Administration can be carried out by the management company or the custodian.

It involves:

  • registration of shareholders or unitholders;
  • issue of certificates to registered shareholders;
  • issue of bearer certificates;
  • valuation of the fund's assets (including fees and share prices);
  • distribution of income to shareholders;
  • issue of reports to shareholders;
  • maintenance of books and records of the investment fund and of the manager.

Appendix V: Value Added Tax Act, 1972 Section 12

(1) (a) In computing the amount of tax payable by him in respect of a taxable period, a taxable person may, insofar as the goods and services are used by him for the purposes of his taxable supplies or of any of the qualifying activities, deduct –

…………………………..

  • (b) In paragraph (a) “qualifying activities” means –
    • (ii) services specified in paragraph (i), (ix) (b), (c) or (d) or (xi), of the First Schedule, supplied –
      • (I) outside the Community, or
      • (II) directly in connection with the export of goods to a place outside the Community, and
    • (iii) supplies of goods or services outside the State, other than services consisting of the hiring out of motor vehicles (as defined in subsection (3)(b)) for utilisation in the State, which would be taxable supplies if made in the State.

Appendix VI: Value Added Tax Act, 1972 Section 8

(8) (a) Where the Revenue Commissioners are satisfied that two or more persons established in the State are closely bound by financial, economic and organisational links and that it would be expedient in the interest of efficient administration of the tax to do so then, subject to such conditions as they may impose by regulations, the said Commissioners, for the purpose of this Act, may –

  • (i) by notice in writing to each of the persons concerned, deem the activities relating to those links to be carried on by any one of the persons, and all transactions by or between such persons shall be deemed, for that purpose, to be transactions by that one person and all rights and obligations under this Act shall be determined accordingly, and
  • (ii) make each such person jointly and severally liable to comply with all the provisions of this Act and regulations (including the provisions requiring the payment of tax) that apply to each of those persons and subject to the penalties under this Act to which they would be subject if each such person was liable to pay to the Revenue

Commissioners the whole of the tax chargeable, apart from regulations under this subsection, in respect of each such person:

Provided that this subsection shall not apply in the case of:

  • (I) the supply of immovable goods by any such person to any other such person, or
  • (IA) the requirement to issue an invoice or other document, in accordance with section 17, in respect of supplies to persons other than supplies between persons who are jointly and severally liable to comply with the provisions of this Act in accordance with subparagraph (ii), or
  • (IB) the requirement to furnish a statement in accordance with section 19A, or
  • (II) the transfer of ownership of goods specified in section 3 (5) (b)
  • (III) (iii) from any such person to any other such person, except where, apart from the provisions of this subsection, each of the persons whose activities are deemed to be carried on by that one person is a taxable person.
  • (b) The Revenue Commissioners may by notice in writing to each of the persons whose activities are, by virtue of a notification issued in accordance with paragraph (a) (i), deemed to be carried on by one of those persons, and as on and from the date specified in the notice (which date shall not be earlier than the date of issue of the notice) cancel the notification under the said paragraph; and as on and from the date specified in the said notice the provisions of the Act and regulations shall apply to all the persons as aforesaid as if a notification under the said paragraph had not been issued, but without prejudice to the liability of any of the persons for tax or penalties in respect of anything done or not done during the period for which the said notification was in force.
  • (c) The Revenue Commissioners may, for the purpose of this subsection, deem a person engaged in the supply of non-taxable goods or services in the course or furtherance of business to be a taxable person.

Appendix VII: Sixth VAT Directive Article 4

  • 4 The use of the word "independently" in paragraph I shall exclude employed and other persons from the tax in so far as they are bound to an employer by a contract of employment or by any other legal ties creating the relationship of employer and employee as regards working conditions, remuneration and the employer's liability.

Subject to the consultations provided for in Article 29, each Member State may treat as a single taxable person persons established in the territory of the country who, while legally independent, are closely bound to one another by financial, economic and organisational links.

Appendix VIII: Value Added Tax Statement of Practice (VAT 2/90) Deductible Tax (Input Credit)

  • 1 At a recent meeting of the EC VAT Committee in Brussels, it was agreed that any expenses incurred in relation to buying or selling shares relate to an exempt activity and therefore do not qualify for input credit.
  • 2 Accordingly no input credit may be allowed in respect of any costs directly attributable to the buying or the selling of shares.
  • 3 No change in practice is envisioned in relation to:
    • (a) supplies to non EC customers (sections 12 (1) and 13 (3) of VAT Act 1972, as amended) or
    • (b) transfer of a business or part thereof (Section 3 (5) (b) (iii) of VAT Act 1972, as amended)

Dublin Castle,

Dublin 2.

August, 1990.