Alker y Christensen: los procesos de paz de Naciones Unidas

This Chapter outlines the main VAT changes since the introduction of the tax in 1972, and details separately the changes in the VAT rates and the VAT registration thresholds.

VAT was introduced with effect from 1 November, 1972. The rates at the time of introduction were zero, 5.26, 16.37 and 30.26%. A special rate of 11.11% applied to dances. A 1% flat-rate addition to purchases from unregistered farmers was part of the system. The limits for registration were £1,800 ( £6,000 ( DQG£12,000 ( D\HDUDFFRUGLQJWRWKHW\SHRIEXVLQHVV

There have been several changes in the rates of VAT and the VAT registration limits since the introduction of the tax and these are set down in the tables below.

At the time of this publication (January 2003) there were four general rates of VAT in operation (zero, 10%, 13.5% and 21%). A rate of 4.3% applied to live cattle, sheep, goats, pigs, deer, horses and greyhounds.

The main changes in the incidence of the tax since November 1972 are as

follows:-On 3 September, 1973 most food and oral medicines were added to the list of zero rated goods.

The positive rates of VAT were increased to 6.75, 19.5 and 36.75%.

On 1 March, 1975 the 1% flat-rate addition for purchases from unregistered farmers was suspended insofar as purchases of live cattle were concerned.

On 1 July, 1975 certain clothing, footwear, clothing material and fuel were zero rated.

On 1 March, 1976 the 6.75 and 19.5% rates were increased to 10 and 20% respectively. The coverage of the 36.75% rate was modified, a new rate of 35% being introduced on passenger motor vehicles and another new rate of 40% on radios, TV sets, record players and records. The special rate for dances was abolished and these became liable at the same rate as other entertainment services were then. The flat-rate addition, for purchases from unregistered farmers, was discontinued.

On 1 July, 1978 the rate of VAT on certain candles was reduced to the zero rate.

On 1 March, 1979 the rates of 35 and 40% were repealed and the goods formally chargeable at those rates were transferred to the other rates. In the case of motor cars, TV sets and gramophone records new excise duties were introduced to compensate for the reduction in VAT. Radios became taxable at 20%. The 1% flat-rate addition for purchases from unregistered farmers was restored. The general limits for registration were increased to £3,000 (  £9,000 ( DQG£18,000 ( D\HDU

On 1 May, 1980 the 20% rate was increased to 25%.

On 1 September, 1981 the 10% rate was increased to 15%. The flat-rate addition for purchases from unregistered farmers was increased from 1% to 1.5%. The rate on agricultural contracting services was reduced to an effective 3%.

On 20 November, 1981 the general limits for registration were increased to £15,000 ( 

a year for traders supplying services and to £30,000 ( D\HDUIRURWKHUWUDGHUV

On 1 May, 1982 the 15% and 25% rates were increased to 18% and 30% respectively. The rate of tax on joinery, furniture, furnishings, floor coverings, bed clothing, coffins and certain other goods was reduced to 18%. The tax on books was removed altogether. The 1.5% flat rate addition for purchases from unregistered farmers was increased to 1.8%.

On 1 September, 1982 VAT was applied to imports at the point of importation. Barristers, solicitors, accountants, actuaries, racehorse trainers and persons supplying rent and debt collection services became liable for tax for the first time. Penalties were increased.

On 1 March, 1983 the 18% and 30% rates were increased to 23% and 35% respectively. The rate on building and associated services was increased from 3% to 5%. The 1.8% flat rate addition for purchases from unregistered farmers was increased to 2.3%. The increase did not apply to hotel accommodation and certain tourist services after 1 May, 1983.

On 1 April, 1983 a system of VAT-free importation of materials and components was introduced for manufacturers who export at least 75% of their manufactured produce.

On 1 May, 1983 VAT at the rate of 5% was imposed on zero rated fuel, excluding electricity.

On 1 July, 1983 the rate of VAT on repair and maintenance services to mechanically propelled road vehicles and agricultural machinery was reduced to 5%. The 2.3% flat rate addition on purchases from unregistered farmers was reduced to 2%. The general limits for registration were reduced to £12,000 ( D\HDUIRUWUDGHUVVXSSO\LQJVHUYLFHVDQG£25,000 ( 

for others. Additional penalties for non-compliance were introduced.

On 1 September, 1983 liquidators and receivers became accountable for VAT on certain taxable goods disposed of by them.

On 1 March, 1984 retail export schemes were introduced. The rate of VAT on theatres and circuses and ready-mixed concrete was reduced to 5%.

On 1 May, 1984 clothing for persons of 11 years of age or over became liable to VAT at 8%.

Materials for the manufacture of all clothing also became liable at 8%.

On 1 March, 1985 a fundamental re-structuring of the rate system took place as a result of which three general rates of VAT came into operation (zero, 10 and 23%). This re-structuring included the introduction of VAT at the rate of 10% on footwear for persons of 11 years of age or over and the exemption of theatres and circuses. The 2% addition for purchases from unregistered farmers was increased to 2.2%.

On 1 March, 1986 the 23% rate was increased to 25%. The 2.2% addition on purchases from unregistered farmers was increased to 2.4%.

On 1 July, 1986 the rate of VAT on services such as meals and catering, cinema and certain other entertainment services, most repair and maintenance services, laundry and cleaning services was reduced from 25% to 10%. The VAT rate on hot take-aways was increased from zero% to 10%

while the rate on cooked potato chips was reduced from 25% to 10%.

On 1 May, 1987 the flat-rate addition for purchases from unregistered farmers was reduced from 2.4% to 1.7%.

On 1 March, 1988 the flat-rate addition for purchases from unregistered farmers was reduced from 1.7% to 1.4%. Electricity became liable to VAT at 5%.

On 1 March, 1989 the flat-rate addition for purchases from unregistered farmers was increased from 1.4% to 2%.

On 24 May, 1989 the general limits for registration were increased to £15,000 ( D\HDU for traders supplying services and £32,000 ( IRURWKHUV

On 1 July, 1989 the rate of VAT on certain works of art and antiques was reduced from 25% to 10%. The management of certain collective investment undertakings was exempted.

On 1 November, 1989 corrective spectacles and contact lenses became liable at 10%.

On 1 March, 1990 the 25% rate was reduced to 23%. Electricity became liable at 10%. The flat-rate addition for purchases from unregistered farmers was increased from 2% to 2.3%.

On 30 May, 1990 services supplied by certain cultural bodies and non-profit making groups were exempted. Exemption on some driving lessons was restricted to heavy goods vehicles training.

On 1 July, 1990 the rate on certain current affairs magazines was reduced to 10%.

On 1 January, 1991 telecommunication services became liable at 10%. The supply and hire of horses and the supply of greyhounds became liable at 2.3%.

On 1 March, 1991 the 23% rate was reduced to 21%. The 10% rate was increased to 12.5%.

However, buildings, building work, concrete products, newspapers, hotel lettings and short-term hire of boats, caravans and tour guide services remained at 10%.

On 29 May, 1991 contract cleaning services were reduced from 21% to 12. 5%.

On 1 June, 1991 the rate of VAT on the services of jockeys was reduced to 12.5%.

On 1 January, 1992 vets became liable to VAT on their services at the rate of 12.5%. All holiday accommodation became liable at 10%.

On 1 March, 1992 the 12.5% rate was increased to 16%. However, fuel, electricity, catering services, admissions to cinemas, shows and some exhibitions, waste disposal, agricultural and vets services remained at 12.5%. The flat-rate addition for purchases from unregistered farmers was increased from 2.3% to 2.7%.

On 28 May, 1992 licensees became liable for VAT on admission charges to dances held on their premises.

On 1 July, 1992 the rate of VAT on frozen desserts, uncooked confectionery and savoury snack products was increased from zero% to 21%. The provision of commercially run sporting facilities became taxable at 12.5%. Farm relief services became liable at 12.5%.

On 1 November, 1992 the rate of VAT on certain bottled waters, fruit juices and sports drinks was increased from zero% to 21%.

On 1 January, 1993 the introduction of the Single Market changed the VAT treatment of goods moving between Member States of the European Union. Goods arriving from other Member States are not treated as imports and therefore are not liable to VAT at point of importation, but are accounted for on VAT returns. Intra-Community goods transport services became taxable at a

positive rate. Registration thresholds were abolished for persons supplying goods or services within the State if they had no establishment here. The threshold was also abolished for persons in receipt of Fourth Schedule services from abroad. Persons supplying services became subject to the 90% rule in opting for the cash receipts basis of accounting.

On 1 March, 1993 the 10% rate was increased to 12.5% and the 16% rate was reduced to 12.5%.

However, the rate on auto L.P.G., telecommunications, adult clothing and footwear, contact lenses and spectacles, farm management, farm accountancy and services relating to sales of agricultural property was increased from 16% to 21%. The rate on cakes and non-chocolate biscuits was reduced from 21% to 12.5%. The flat-rate addition for purchases from unregistered farmers was reduced from 2.7% to 2.5%. The rate of VAT on livestock, horses and greyhounds was reduced from 2.7 to 2.5%.

On 1 July, 1994 the general limits for registration were increased to £20,000 ( D\HDU for traders supplying services and £40,000 ( IRUWUDGHUVVXSSO\LQJJRRGV7KHDQQXDO turnover for operating the cash receipts basis of accounting was increased to £250,000 ( 

On 1 September, 1994 loss adjusters services became liable to VAT at the 21% rate.

On 2 June, 1995 interest charges on hire-purchase or credit-sale transactions became exempt from VAT.

On 1 July, 1995 the law was amended to provide for the implementation of the Margin Scheme and Auction Scheme for second-hand goods and a special scheme for second-hand motor vehicles. Changes also applied to the VAT treatment of works of art, collector’s items and antiques set out in a new Eighth Schedule to the VAT Act.

On 1 January, 1996 certain non-member golf turnover, such as income from green fees of member-owned clubs and local authority golf courses, became liable to VAT at the rate of 12.5%.

The VAT treatment of “contract work” also changed.

On 1 March, 1996 the flat-rate addition for purchases from unregistered farmers was increased from 2.5% to 2.8%.

On 1 March, 1997 The flat-rate addition for purchases from unregistered farmers was increased from 2.8% to 3.3%.

On 1 July, 1997 changes were made in relation to the place of supply of telecommunication services received from abroad.

On 17 July, 1997 the annual turnover threshold for operating the cash basis of accounting was increased to £500,000. ( 

On 1 September, 1997 a person whose retail sales of horticultural produce exceeded £40,000 (G50,789.52) per annum was obliged to register and account for VAT. The rate of VAT on horticultural products was reduced from 21% to 12.5%.

On 1 March, 1998 the flat-rate addition for purchases from unregistered farmers was increased from 3.3% to 3.6%.

On 1 May, 1998 the rate of VAT on periodicals and certain printed matter was reduced from 21%

to 12.5%.

On 1 July, 1998 farmers selling livestock semen were obliged to register for VAT where sales exceeded £40,000 (  SHU DQQXP 7KH UDWH RQ LQVHPLQDWLRQ VHUYLFHV DQG VDOHV RI livestock semen was reduced to 12.5%.

On 1 January, 1999 businesses were given the option of conducting their Revenue affairs in either Irish pounds or euro

.

On 1 March, 1999 the flat-rate addition for purchases from unregistered farmers was increased from 3.6% to 4.0%.

On 25 March, 1999 the requirement to register for farmers selling livestock semen was restricted to those farmers selling bovine semen.

On 1 July, 1999 duty-free sales to travellers on intra-Community journeys were abolished. The zero rate was applied to goods exported by or on behalf of purchasers established outside the State.

On 1 January, 2000 a Special Scheme for investment gold was introduced.

On 1 March, 2000 the flat-rate addition for purchases from unregistered farmers was increased from 4% to 4.2%.

On 23 March 2000 the apportionment rules were revised and the unjust enrichment provisions extended. Revised rules governing the cancellation of registration in respect of the letting of holiday homes were introduced.

On 1 January 2001 the flat-rate addition for purchases from unregistered farmers increased from 4.2% to 4.3%. The standard rate was reduced from 21% to 20%. .

On 21 March 2001 the ‘transfer of business’ rules were amended.

On 30 March 2001 subject to certain conditions, changes relating to electronic invoicing etc. were introduced.

On 1 May 2001 the supply, hiring etc. of equipment incorporated or used in certain sea going vessels was zero rated.

On 1 September 2001 toll charges (road/bridge tolls), formerly exempt, became taxable at 20%.

Supply of research services by universities became taxable at 20%.

On 1 January 2002 the right of Member States to oblige non-established traders to appoint fiscal representatives was removed

On 1 March 2002 the standard rate of 20% was increased to 21%.

On 25 March 2002 revised accounting arrangements were introduced in respect of cultural, artistic, entertainment and similar services provided by persons not established in the State. The acceptance off course by bookmakers of tote bets became exempt from VAT. The concept of

‘Economic Value’ in relation to the disposal of an interest in property was introduced.

On 1 September 2002 interest became chargeable at a daily rate of 0.0322%.

On 1 January 2003 the reduced rate of 12.5% was increased to 13.5%.