Value-Added Tax (Amendment) Regulations 2007
Statutory Instruments
Source: Statutory Instruments

num: 1
paragraphs: These Regulations may be cited as the Value-Added Tax (Amendment) Regulations 2007.
num: 2
paragraphs: The Value-Added Tax Regulations 2006 ( S.I. No. 548 of 2006 ) are amended—
“(5A) Tax chargeable in respect of the supply of goods within the meaning of section 3(1)(b) of the Act is excluded from the application of section 14(1) of the Act.
(5B) Tax chargeable in respect of the supply of goods or services in any of the circumstances referred to in subsections (2) to (9) of section 10 of the Act is excluded from the application of section 14(1) of the Act.”,
“Adjustments for bad debts and for early determination of hire purchase transactions
16A. (1) In this Regulation—
“determination” means the termination of a hire purchase agreement and the return of the goods which are subject to that agreement on a prior date to the date fixed for such termination under that agreement;
“part payment” means the amount of money or the value of goods traded in by the customer which amount or value is shown in the hire purchase agreement as representing that part of the sale price of goods which is not being financed under the terms of the hire purchase agreement;
“sale price” means the price shown in the hire purchase agreement which is inclusive of tax, and vehicle registration tax where appropriate, and which is the price for which the goods would be sold to a customer if their purchase were not financed in whole or in part under a hire purchase agreement.
(2) In a case in which section 10(3)(c) of the Act applies by reason of the default of a debtor, where
(a) the consideration exclusive of tax actually received by a taxable person in relation to the supply by him or her of any goods or services is less than the amount on which tax was chargeable in respect of such supply, or
(b) no consideration is actually received,
then, subject to the conditions in paragraph (3), relief in respect of the tax attributable to the deficiency (in this Regulation referred to as a “bad debt”) may be claimed in accordance with this Regulation.
(3) A taxable person who has accounted for tax in respect of a supply covered by paragraph (2) may subsequently claim bad debt relief for the tax attributable to the bad debt, where—
(a) that taxable person has taken all reasonable steps to recover the bad debt,
(b) the bad debt is allowable as a deduction for the purposes of section 81(2)(i) of the Taxes Consolidation Act 1997 (No. 39 of 1997) and has been written off as such in the financial accounts of that taxable person and the requirements of Regulation 8(1)(m) in respect of that debt have been fulfilled, and
(c) the person from whom the debt is due is not connected with that taxable person, and the question of whether a person is connected with that taxable person shall be determined in accordance with Regulation 15(5)(b).
(4) The amount of the relief which a taxable person may claim in respect of a supply covered by paragraphs (2) and (3), which is not a supply within the meaning of section 3(1)(b) of the Act, is calculated in accordance with the following formula:
A x B
100 + B
where—
A is the amount which is outstanding from the debtor in relation to the taxable supply, and
B is the percentage rate of tax, specified in section 11(1) of the Act, which was applied to the supply in question.
(5) (a) The amount of the relief which a taxable person may claim in respect of a supply covered by paragraphs (2) and (3), which is a supply within the meaning of section 3(1)(b) of the Act (in this Regulation referred to as a “supply of the goods under the hire purchase agreement”), is calculated in accordance with the following formula:
(C — D) x (E — F)
C
where—