QI have been living overseas for a number of years and in that time

rented a house in south Dublin to tenants. I returned in recent months,

and for medical reasons have been in hospital since my return. It looks
like it might be some more months before I get back to my house. I
ultimately want to sell it and find a smaller property. Is it possible to
register it as my principal private residence from the time of my return
as it is where I planned to live so that I can avoid
paying capital gains tax on proceeds of a sale?
A A liability to capital gains tax (CGT) arises when the proceeds (less incidental costs
of sale) is greater than the original purchase price (plus purchase costs and adjusted
for inflation if purchased pre 2003). CGT is levied on this gain at a current rate of 33
per cent, and not the sales proceeds.
An individuals principal private residence (PPR) is exempt from CGT if the
individual has used the house as their PPR throughout the period of ownership.
Where an individual has not occupied the house as their PPR during the entire
ownership, then they may partially avail of PPR relief on a pro rata basis. The portion
of the gain exempt under PPR is calculated by taking the number of complete years
the house was occupied as your home (including a deemed occupancy of the last 12
months before sale) over the total number of years of ownership.
Revenue considers any period of absence during which the claimant (whom normally
lives alone) was receiving care in a hospital, and the PPR remained unoccupied may
be treated as a period of occupation. Revenue also accept a period of absence due to a
requirement by an employer to work abroad as a deemed period of occupancy. The
period of absence related to foreign employment is only permitted where the house
was occupied as the claimants only or main residence both before and after this
period.
Application to your circumstances; in the future when you sell your property you may
avail of PPR relief on a pro rata basis using the calculation outlined above. The
period of time which you are in hospital may be considered within the number of
complete years the house was occupied as your home. Your time abroad, dependent
on the terms of your employment, may also be included provided certain conditions
have been met.
An individual cannot have more than one PPR qualifying for relief at any one time.
You should notify the Inspector of Taxes that you elect the Dublin house as your
PPR, if you have more than one PPR which could avail of the relief.

Ciara McEntee is a tax consultant with Baker Tilly Ryan Glennon

Boundary walls
Q My boundary back wall that separates my back garden from my
detached neighbour only comes out as far as quarter of my front
driveway. I would like to continue this wall to the edge of my driveway
for the safety for my two boys and privacy. Would following the line of
my back wall to edge of driveway be okay?
AFrom the limited information provided I assume that the existing wall you refer to
is a party wall, ie constructed on the legal boundary such that one side of the wall is
in your neighbours property and the other side is in your property. I also assume
that you propose to extend this existing wall alongside the driveway to the point at
which it joins the public footpath/road in order to enclose the front area/lawn. There
are two aspects you need to consider: (a) What you are entitled to do; (b) What
impact your actions may have on your neighbour(s).
With regard to (a), you cannot extend the wall along its existing alignment if it is a
party wall without the agreement of your neighbour as it would involve encroaching
on his/her property. You are, however, entitled to build a wall on your own side of
the legal boundary. As it is at the front of your house, it is likely to be subject to a
maximum height restriction of 1.2 metres.
With regard to (b), it is advisable to discuss any boundary work you propose to
undertake with your neighbour, or neighbours, depending on its possible visual
impact. You may cause annoyance or upset neighbourly relationships if you construct
a wall which is at variance with, or out of context with existing boundary treatments
in the area.
A wall constructed at the front of a house in a residential area which has open plan
frontages or more discreet boundary treatments may have an adverse visual impact.
Discuss your reasons for wishing to extend the wall with your neighbour, and you
may find that he/she will be agreeable to the wall, or alternative such as a timber
fence, continuing on the alignment of the existing wall. It would be then considered
to be a party wall/fence. Patrick Shine is a chartered geomatics surveyor, a chartered
civil engineer, and a member of the Society of Chartered Surveyors Ireland, scsi.ie
Building regulation
Q In a recently built house adjacent to me, An Bord Pleanla, in a stated
condition, ruled that three windows on one side of the house must be
fixed and unopenable and be permanently glazed with obscured glass.
This is unambiguous and shows that An Bord Pleanla deemed it a

matter of considerable importance. When installed all three windows,

while fitted with obscured glass, were all openable.
This is a fundamental breach of a planning condition.
I sent a complaint to the Enforcement Department of Dublin City
Council last July with pictures. It took eight months for Enforcement to
get back to me to say that the condition had been partially complied
with and that it considers the degree of overlooking by the openable
windows to be minor in nature and the case is closed.
Has Dublin City Council Enforcement Department the authority to
disregard a fundamental breach of a condition of a planning permission
issued by An Bord Pleanla?
If so, this emasculates the role of An Bord Pleanla and undermines the
integrity of the whole system?
ADevelopments which are granted planning permission should comply with all
conditions, including those stipulated by An Bord Pleanla. If they do not, then
technically, they are unauthorised developments. Non-compliance with planning
conditions is something which I observe on a regular basis. The condition in this case
is clear and specific and must have been attached for a particular reason.
The local planning authority (LPA) does not have the authority to disregard
conditions set by An Bord Pleanl. Rather, their role is to enforce decisions,
including all conditions. An Bord Pleanla itself has no power to enforce. However,
unfortunately for the complainant in this situation, when a complaint is made about
an unauthorised development, the LPA may decide under section 152 of the Planning
and Development Act not to issue a warning letter if the development is considered
to be of a minor nature.
This is no doubt frustrating for the complainant, as they clearly see the development
as a significant matter. While any person may pursue an injunction via the courts
under section 160 of the Planning and Development Act, to cease an unauthorised
development, or to ensure conformity with any conditions to which the permission is
subject, the potential cost, stress and uncertainty associated with this course of
action means that it is not a decision to be taken lightly.
Andrew OGorman is a chartered building and planning and development surveyor
and is a member of the Society of Chartered Surveyors Ireland scsi.ie
Send your queries to propertyquestions@irishtimes.com or to Property Clinic, The
Irish Times, 24-28 Tara Street, Dublin 2. This column is a readers service. Advice
given is general and individual advice should always be sought

Chargeable Assets
All forms of property are assets for CGT purposes whether situated in or outside
the State. Examples of assets are:

Land

Shares

Goodwill

Currency, other than Irish currency

Do all disposals of assets give rise to CGT liability?

No, not all disposals (of assets) give rise to a charge of CGT. For example, any
gains arising in the following circumstances are not regarded as giving rise to
chargeable gains and hence are not liable to CGT

Gains on the disposal of property owned by you (a house, apartment, etc.) which was occupied by you or by a
dependent relative as a sole or main residence. Restrictions may apply where the property was not fully occupied as a
main residence throughout the period of ownership or where the sale price reflects development value.

Gains from betting, lotteries, sweepstakes, bonuses payable under the National Instalments Savings Scheme and
Prize Bond winnings.

Gains on Government Stocks and other securities (e.g. securities issued by certain semi-State bodies).

Gains on disposal of wasting chattels (e.g. animals, private motor cars, etc.).

Gains on Life Assurance policies (unless purchased from another person or taken out with certain foreign insurers on
or after 20 May 1993).

Gains made by individuals on tangible moveable property (e.g. household furniture) where the consideration does not
exceed 2,540.

Can you give a list setting out examples of some chargeable assets?
The following list is not exhaustive but all assets listed are chargeable to CGT:

All forms of Land and property, wherever situate, including sites, be they developed or green field and with or without
planning permission, houses, apartments, and commercial property.

Shares in either Irish resident or non-resident companies.

Governmental Stocks & Securities, other than Irish.

Antiques

Paintings.

Jewellery

Certain capital sums derived from assets.

All forms of incorporeal property including options and the goodwill of a business.

Trade assets.

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Calculating CGT
Capital Gains Tax is a self- assessment tax. Regardless of whether you are
registered for tax purposes you must calculate and pay your tax and file a return of
gains and losses without being requested to do so by Revenue.
Firstly, you must calculate the gain or loss arising on the asset you sold. At its
simplest this is the difference between the sale proceeds and the aggregate of the
cost of the asset, acquisition and disposal costs and enhancement expenditure.
Depending on when the expenditure was incurred an allowable adjustment for
inflation (this is known as indexation seeMiscellaneous) may be made. In some
instances, for example where an asset is disposed of by gift or acquired on the
death of the previous owner, the market value is substituted for the sale proceeds
and actual cost.
Unused capital losses arising in the current or earlier years may be offset against
the gain. (Unused losses are used before the annual exemption of 1,270). The
first 1,270 of an individual's annual gains is exempt. The balance is chargeable at
33%.
Special rules, including a rate of 40%, apply to disposals of certain foreign life
assurance policies and offshore funds.
Additional information, including worked examples, computational sheets and
inflation multipliers, is available in our

CGT Booklet Guide to Capital Gains

Tax. (PDF, 471KB)

Am I entitled to any deductions in calculating my CGT liability?

Yes, you are entitled to deduct acquisition, enhancement and disposal costs. In
other words, in calculating your CGT liability, you may deduct:

The purchase price or market value (as appropriate) together with any incidental acquisition costs such as stamp duty,
auctioneers fees, solicitors fees etc (in some circumstances you may be entitled to 'index' the acquisition and incidental
costs see Miscellaneous).

Expenditure incurred for the purpose of enhancing the value of the asset, for example attic conversion, extension etc
(in some circumstances you may be entitled to 'index' the enhancement costs).

From the sale proceeds, incidental expenses of sale such as solicitors, advertising etc.

However, you should note that deductions may only be made in respect of
expenditure wholly and exclusively incurred in connection with the acquisition,
enhancement or disposal of the asset.
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Main Exemptions & Reliefs
The following are of some of the main exemptions and reliefs. Additional
information on these and others is available in our CGT Booklet Guide to Capital
Gains Tax.

Private Residence

Page 15, of CGT Guide (PDF, 471KB), point 5.

Gains made on the disposal of your home together with its gardens or grounds up to an area (exclusive of the site of
the residence) of one acre may be exempt. For full relief to apply, you must have occupied the home as your principal
private residence throughout your period of ownership or to within 12 months of the date of disposal. Relief may be
restricted where the home was not your main residence throughout the period of ownership (other than the final 12
months), where any part of it was used exclusively for the purposes of a trade, business or profession or where it is
sold as development land, for example part of the garden (see Disposal of Property).

Transfer of a site from parent to child

Page 16 of CGT Guide (PDF, 471KB), point 6.

There is an exemption from CGT if you transfer a site to your child (including certain foster children) where the transfer
takes place after 6 December 2000 and is to enable the child construct a principal private residence on the site. The
market value of the site must not exceed 500,000 (254,000 for disposals prior to 5 December 2007). For transfers on
or after 1 February 2007 the area of the site (exclusive of the area on which the house is to be built) must not exceed
0.4047 hectare, ie 1 acre. The relief is clawed back and charged on the child in certain circumstances.

Retirement Relief

Page 16 of CGT Guide (PDF, 471KB), point 7.

This relief applies where you dispose of certain "qualifying assets". These include assets used for the purpose of a
trade, profession or farming and shares in certain family trading companies. You must be least 55 years of age at the
time of the disposal and satisfy a number of other conditions. It is not necessary that you retire to claim the relief.

Back to Top
CGT Payments & Returns
Form CGT Payslip A (for the purposes of making a payment of Capital Gains
Tax for the period 1 January 2016 to 30 November 2016) (PDF, 91KB)
Form CGT Payslip B (for the purpose of making a payment of Capital Gains
Tax for the period 1 December 2015 to 31 December 2015 ) (PDF, 101KB)
For 2009 and subsequent years the tax year is divided into a revised set of two
periods for CGT payment purposes, as follows:

'initial period' - 1 January to 30 November, both inclusive.

'later period' - 1 December - 31 December, both inclusive.

The due dates for payment of CGT are now as follows:

Disposals in the initial period: Tax due by 15 December in the same tax year.

Disposals in the later period: Tax due by 31 January in the following tax year.

For years 2003 to 2008 inclusive the tax year was divided into two periods for CGT
payment purposes:

'initial period' - 1 January to 30 September, both inclusive: due date for payment of CGT - 31 October in the same year

'later period' - 1 October to 31 December, both inclusive: due date for payment of CGT - 31 January in the following
year

How do I pay my tax?

Having calculated the tax due you should send a cheque for that amount to the
Collector General's office in Limerick. The payment should be accompanied by a
CGT payslip which is a short form providing relevant details in respect of the
payment.
As noted above there are two different disposal periods for CGT, this will determine
the date payment is due and also which CGT payslip is required. For disposals in
the initial period (1 January to 30 November) Payslip A is used, for disposals in the
later period (December) Payslip B is used.
CGT payslips, which include the full address for the Collector General, can be
downloaded from the Revenue websiteCapital Gains Tax Forms page or obtained
by calling LoCall 1890 306 706.
Interest may be charged on late payments.

What information or returns should I send to Revenue about CGT disposals?

Irrespective of whether you have submitted a payment, or whether the gain is
relieved from tax or a loss arises on the disposal, you must submit a tax return to
Revenue in respect of any disposals. Generally the tax return is due by 31st
October in the year following the calendar year in which the disposal was made.
If you are not required to submit an annual tax return you should complete Form
CG1.
If you are required to submit a tax return each year you should include details
relating to CGT in the appropriate portion of the return.
The return should be completed fully and accurately in respect of the disposal of
assets. It is not necessary to include any additional information with the return,
although any relevant documentation should be retained for future reference.
Penalties and surcharges may apply for incorrect or late returns.
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Disposal of Property
In most instances you will not be liable to CGT on the disposal of your sole or main
residence. A person's sole or main residence is also known as that persons
principal private residence. (More information on exemptions including principal
private residence relief is shown under Main Exemptions and Reliefs)
What happens if I dispose of an Investment property?
You will be liable to CGT on any gain you make. (In the first place, you should
realise that 'disposal' includes not alone an outright sale but also a gift. In
circumstances where the disposal proceeds are less than market value, the market
value is used to calculate any gain arising). The gain you make (ignoring indexation
and purchase and sale costs) is simply the difference between the purchase price
and the sale price.
I have an investment property and intend gifting it to my children, is this gift
liable to CGT?
As set out in the question above gifts do indeed attract CGT. The market value at
the date of the gift is substituted and CGT is then calculated in the normal manner.
If I make a gift of property and have to pay CGT on the disposal, does the
beneficiary of the gift have to pay CAT on the acquisition?

Yes, the beneficiary may also be liable to Capital Acquisitions Tax on the
acquisition. The CAT due will be assessed on the market value at the date of the
gift. However, there are exemptions based on the relationship between the
disponer and the beneficiary, for example, in 2007, a gift from a parent to a son or
daughter is exempt once the valuation (of all gifts or inheritances within the same
group or class since 1 December 1991) is 496,824 or less. A credit for any CGT
payable on the same event that gives rise to the CAT charge is available for offset
against the CAT arising.
If I sell part of my garden to a builder, who builds a house on it, am I liable to
pay capital gains tax?
Yes. Normally when an individual disposes of his/her principal private residence
and a garden or grounds of up to one acre (excluding the site of the house), then
any gain on such a disposal is exempt from capital gains tax. However, where a
dwelling house or garden/part of a garden, is sold for greater than its current use
value, then this constitutes the sale of development land and principal private
residence relief will apply only to the current use value. In general terms the
difference between the consideration and the current use value is liable to capital
gains tax. Development Land rules do not apply to disposals where the total
consideration from such disposals does not exceed 19,050.
Example:
An individual disposes of part of his garden for 40,000. The current use value of
the site is 2,000. The entire property originally cost 100,000. The market value of
the property after the sale of the site is 360,000.
Step 1. Calculate the gain arising using the part disposal rules and ignoring any
development land implications Proceeds are equal to 40,000.
Original Cost of 100,000 x [40,000 / ( 360,000 + 40,000)] = 10,000
Index of (say) 1.5 i.e. 10,000 x 1.5 = 15,000
Gain is equal to 25,000.
Step 2: Calculate a notional gain, as if the site was sold for current use value. This
is the principal residence relief Proceeds are equal to 2,000.
Original Cost of 100,000 x [2,000 / ( 360,000 + 2,000)] = 552

Index of (say) 1.5 i.e. 552 x 1.5 = 828

Principal Private Residence Relief is equal to 1,172.
Step 3:
Deduct the Principal Private Residence Relief of 1,172 from the Gain of 25,000.
The Chargeable Gain is equal to 23,828
On a subsequent disposal of the remaining property, the base cost of the land
disposed of, will be the original cost less the base cost allocated to this disposal.
i.e. 100,000 - 10,000 = 90,000
If I sell all or part of land owned by me under a Compulsory Purchase Order
(C.P.O.), am I liable to pay capital gains tax on the disposal?
Yes, gains arising on the disposal of land by C.P.O. are chargeable to capital gains
tax. In some circumstances you may be entitled to retirement relief (see Main
Exemptions and Reliefs and Miscellaneous).
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Transfers of Assets to Spouse or Civil Partner
If I transfer an asset to my spouse or civil partner do I have to pay CGT?
No, when the asset is transferred it is treated as if no gain/no loss occurred on the
transfer; the benefiting spouse or civil partner inherits the base cost and period of
ownership from the spouse or civil partner making the disposal. In the event that
the benefiting spouse or civil partner subsequently disposes of the asset the
original base cost and period of ownership is used to calculate any gain arising.
See also the question below. (Transfers between spouses or civil partners are
taxable, if the benefiting spouse or civil partner is non-resident in the year the
transfer takes place.)
If I transfer an asset to my spouse or civil partner as part of a separation
agreement or as part of a divorce settlement do I have to pay CGT?
No, the same reply as above applies. (Transfers between spouses or civil partners
are taxable, if the benefiting spouse or civil partner is non-resident in the year the
transfer takes place.)
However, it is very important to remember that any such transfer
occurring AFTER and in certain circumstances BEFORE a formal separation or
divorce is in place attract CGT in the normal manner.
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Miscellaneous
What happens when I sell foreign assets?
If you are resident or ordinarily resident, and domiciled in the State you are
liable to CGT on worldwide gains (SeeIntroduction to CGT). Therefore, if you
dispose of a foreign asset, for example a property in another country or shares in a
foreign company, Irish CGT will apply. Where foreign capital gains tax is paid a
credit may be available against your Irish CGT for some, or all, of that amount.
Foreign CGT, which cant be taken into account for credit purposes, is deducted
from the sale proceeds in calculating the gain.
What indexation multiplier applies if I dispose of any assets?
A table of multipliers for the years ended 5 April 1996 to 31 December 2004 et seq
is included in Leaflets and Guides -

CGT- Capital Gains Tax Multipliers (PDF,

39KB)
How are the dates of disposal and acquisition for CGT purposes determined?
The main rules for determining the time of disposal and acquisition for CGT
purposes are as follows:

For disposals under an unconditional contract the time of disposal and acquisition is the date the contract is
made,not the completion date.

Where the contract is subject to a condition, the time of disposal and acquisition is the date the condition is
satisfied, not the completion date. A contract is conditional if a condition must be satisfied before an obligation to
perform the contract arises. For example, where the acquisition of land is subject to the purchaser obtaining planning
permission, the time of disposal and acquisition is the date the permission is obtained.

On a compulsory acquisition of land by an authority possessing the relevant powers, the time of disposal is either the
date the compensation is agreed or the time of entry by the authority on the land, whichever is the earlier. (In certain
circumstances, where the disposal under a compulsory purchase order is for road-building or widening purposes, the
resultant CGT liability will not arise until the year of assessment in which the compensation is received).

1. General
1.1 The supply of a wide range of photographic goods such as prints, negatives
and exposed film is subject to VAT at thereduced rate. The supply of certain
services such as the editing of film and microfilming is also subject to the reduced
rate of VAT. Certain other supplies in the photographic sector are subject to
the standard rate of VAT including the supply of digitized products on disc or

downline by computer. This Information Leaflet sets out the rates of VAT
appropriate to the different photographic and associated supplies.
2. Photographic goods and services classified at the reduced rate of VAT
2.1 Paragraphs (xxi) to (xxvi) of the 6th Schedule to the VAT Act are the provisions
which apply the reduced rate to certain photographic supplies. These are set out
in

Appendix II (PDF, 88KB) to this Information Leaflet.

2.2 Paragraph (xxi) covers the supply of photographs ( including enlargements and
reprints), slides, negatives, cine film and video films where these are produced from
materials provided by the customer. It includes the normal case where photographs
etc. are supplied by developing and printing from a customers roll of film. It includes
printed photos supplied as a result of digital photography processing. It does not
include photocopying or digitized products supplied on disc or down-line by
computer, which are subject to standard VAT.
2.3 Paragraph (xxii) (a), (b) and (c) cover the supply on a commissioned basis of
photographs, mounted ( including in albums) or unmounted, but unframed. An
example of this is commissioned wedding photographs supplied in an album. Also
classified here are slides, negatives and cine and video films supplied on the same
basis. Supplies of photocopies are excluded as are digitized images supplied on
disc or downline.
2.4 Paragraph (xxiii) (a) and (b) covers the supply of negatives and exposed film by
professional photographers, ie. uncommissioned photographs accepted by
newspapers from photographers.
2.5 Paragraph (xxiv) covers photographs supplied from automatic photo vending
booths.
2.6 Paragraph (xxv) covers the services of editing of film and microfilming.
2.7 Paragraph (xxvi) covers agency services (e.g. by chemists) in regard to the
developing of film.
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3. Photographic goods and services classified at the standard rate
3.1 The supply or hire of other photographic goods is subject to VAT at the
standard rate. These goods include photographic, cine and video equipment and

materials, photographic frames, unused rolls and cassettes of film, discs, batteries.
The supply of digitised photographs or film on disc or downline by computer is
subject to the standard rate. Also subject to the standard rate are photographs,
slides, negatives, prerecorded video tapes and cine films other than where supplied
in the particular circumstances referred to in paragraph 2 above.
4. Photographic goods and services classified at the zero rate of VAT
4.1 Printed books and booklets, with certain exceptions, are classified at the zero
rate of VAT. Please refer to VAT Information Leaflet Printing and Printed Matter. A
book consisting of non-commissioned printed photographs may qualify for the zero
rate , subject to those conditions. It should be noted that a photographic album is
not considered as a book for VAT purposes.
5. Digitised products supplies on disc or electronically
5.1 The VAT Act, reflecting the terms of the 2006 EU VAT Directive does not
provide for the application of the reduced rate of VAT to the supply of digitized
photographs on disc or downline by computer. Such supplies are subject to VAT at
the standard rate of VAT.
5.2 Where such images are supplied on disc or downline to a business outside the
State they are subject to an effective zero rate. VAT is accounted for by the
recipient by reference to the rules in his/her country of establishment. Please refer
to VAT Information leaflet Fourth Schedule Services.
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6. Works of art
6.1 The 8th Schedule to the VAT Act relates to photographs taken by an artist,
printed by the artist or under the artists supervision, signed and numbered and
limited to 30 copies, all sizes and mounts included. The reduced rate applies to
a.

the importation into the State of such works of art

b. the supply of such a works of art, effected by its creator or the creators
successor in title, or on an occasional basis by an accountable person other
than a taxable dealer where

i.

that work of art has been imported by the accountable person, or

ii.

that work of art has been supplied to the accountable person by its
creator or the creator's successors in title, or

iii.

the tax chargeable in relation to the purchase, intra-Community

acquisition or importation of that work of art by [the accountable person
was wholly deductible under section 12, and
c. the intra-Community acquisition in the State by an accountable person of
such a work of art where the supply of that work of art to that accountable
person which resulted in that intra-Community acquisition is a supply of
the type that would be charged at the reduced rate in accordance with the
above supply, if that supply had occurred within the State.

6.2 The supply of photographic works of art, other than as outlined in the above
paragraph and commissioned photographs, is subject to VAT at the standard rate.
6.3 A copy of Section 11(1A) and the 8th Schedule to the VAT Act are set out
in

Appendix II (PDF,88KB ) to this leaflet.

7 Event, press, PR and sports photography

7.1 Where such work is commissioned and handed over in hard copy or on
cinematographic or video film the reduced rate applies. The supply of negatives
and exposed film by professional photographers, including uncommissioned
photographs accepted by newspapers from photographers also qualifies for the
lower reduced rate. It should be noted that the supply of such work on disc or
downline is subject to the standard rate of VAT.
7.2 The supply if digitized images on disc or downline to a business outside the
State is subject to an effective zero rate of VAT and is taxable in the hands of the
recipient by reference to the rule in their country of establishment. Please refer
to VAT Information Leaflet Fourth Schedule Services.
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8. Wedding and Portrait photography
8.1 A wedding album is not considered to be a book for VAT purposes. On a
concessionary basis Revenue accepts that the supply of commissioned wedding or
portrait photographs in frames or in albums qualifies for the reduced rate, subject to
the cost of the skeleton album or frame, excluding VAT, not exceeding two-thirds of
the total charge of the completed product, excluding VAT. This concession extends

to standard albums where the exposed photographs are inserted into the album
manually and to 'contemporary' albums where the photographic prints are bonded
into the pages of the album by another process.
9. Royalties
9.2 The assignment of rights in photographic images is a services and where such
rights are assigned to a business in another State the fees are taxable at an
effective zero rate in this State and subject to VAT in the hands of the recipient of
the right by reference to the rules in the recipients own country of establishment.
Please refer to VAT Information Leaflet on Fourth Schedule Services.
10. Examples
10.1 A list indicating the rates of VAT to be charged on supplies in the photographic
industry is set out in

Appendix I (PDF, 44KB) to this leaflet.

11. Further information

11.1 Enquiries regarding any issue contained in this Information Leaflet should be
addressed to the Revenue District responsible for your tax affairs. Contact details
for all Revenue Districts can be found on the Contact Details page.

1. What is VAT?
VAT is a tax on consumer spending. It is collected by VAT-registered traders on
their supplies of goods and services effected within the State, for consideration, to
their customers. Generally, each such trader in the chain of supply from
manufacturer through to retailer charges VAT on his/her sales* and is entitled to
deduct from this amount the VAT paid on his/her purchases.
[*In some circumstances, particularly in the Construction Industry, VAT is not
charged by the supplier, but instead the VAT registered customer simply accounts
for the VAT as if it had been charged.]
The effect of offsetting VAT on purchases against VAT on sales is to impose the
tax on the added value at each stage of production hence Value-Added Tax. For
the final consumer, not being VAT-registered, VAT simply forms part of the
purchase price.

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2. What is VAT charged on?
Most goods and services supplied in Ireland are subject to VAT. Goods imported
into Ireland from outside the EU are also subject to VAT this is charged by
Customs at the point where the goods enter the State. See Imports.
Persons engaged in business in Ireland who receive goods from a trader within the
EU, or services (with certain exceptions) from any trader established anywhere
outside Ireland, including outside the EU, are required to account for the VAT
payable on receipt of the goods or services as if they had actually made the supply
themselves. This requirement applies to traders generally and also to entities that
would not normally be engaged in taxable supplies, such as Government
Departments, Local authorities and other public bodies, charities,universities and
hospitals.
As may be seen from the example below, the consumer pays a total of 615 for the
finished product, of which 115 is VAT.
What is VAT?
Purchase Transactions

Sale Transactions

Price
VAT Total
Value
Paid

Purchase Added
(Ex.VAT)
Price

Price
Charged
(Ex.VAT)

VAT
@
23%

Total
Sale
Price

Credit
for
VAT
Paid

Net to
Collector
General

Manufacturer -

100

100

23

123

23

Wholesaler

100

23

123

100

200

46

246

23

23

Distributor

200

46

246

100

300

69

369

46

23

Retailer

300

69

369

200

500

115 615

69

46

Consumer

500

115 615

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3. Taxable person and accountable person

A taxable person is any person who independently carries on a business in the
Community or elsewhere. It includes persons who are exempt from VAT as well as
flat-rate farmers. VAT law provides that VAT is chargeable on the supply of goods
and services effected within the Community or elsewhere for consideration by a
taxable person acting as such, other than in the course or furtherance of an
exempted activity.
A person who is required to charge VAT is referred to as an accountable person.
An accountable person is, therefore, a taxable person (an individual, partnership,
company etc.) who supplies taxable goods or services in the State and who is, or is
required to be, registered for VAT. See VAT Registration.
4. Who must register for VAT?
Persons who are involved in the taxable supply of property and persons whose
annual turnover from supplies of taxable goods and services in the State, or the
value of whose acquisitions of goods from other EU Member States, exceed or are
likely to exceed certain thresholds are obliged to register for VAT. See VAT
Registration.
Persons whose turnover from taxable activities does not exceed the thresholds are
not obliged to register but they may register for VAT if they so wish.
Persons who are in receipt of a service from a business established in another
Member State or outside the EU are accountable persons under Place of Supply
rules.
However, persons who do not have an establishment in the State but who either
supply and install goods in the State or who supply gas through the natural gas
distribution network or electricity in the State are not accountable persons. A subcontractor not established in the State who provides construction services in the
State to principal contractors is not an accountable person, but may register for
VAT in order to claim a repayment of input VAT.
Revenue issues a VAT registration number to a person when it is satisfied that the
person is carrying on a taxable business in the State.
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5. Exemptions
A person who makes exempt supplies, comes within the scope of the term taxable
person but this has no bearing on his/her VAT status. Goods and services of the
kind listed in

Schedule 1 (PDF, 78KB) are exempt from VAT and suppliers of

such goods and services are not entitled to register for VAT unless they also make
taxable supplies. VAT registration will refer to their taxable supplies only. Exempt
suppliers may be required to register and account for VAT in respect of intraCommunity acquisitions and services from abroad that are taxable where received
and on goods and services received by them generally. For special provisions
relating to property please see the Guide to VAT on Property.
6. Non Taxable Entities
The State, local authorities and bodies established by statute are not normally
required to register for VAT in respect of supplies of goods or services by them but
may be required to register and account for VAT in respect of goods and services
received by them or where services or transactions by them create a significant
distortion of competition. SeeState Procurement.
The entities concerned include Government Departments, State sponsored bodies,
An Garda Siochana, the Defence Forces, the Health Services Executive, public
hospitals, enterprise boards, educational establishments (such as universities,
institutes of technology, schools, VECs), local authorities including regional
authorities, harbour authorities.
Third level educational establishments may be required to register for VAT in
respect of certain research services. Where facilities are provided for taking part in
sport by a not for profit organisation that organisation may be required to register
for VAT. See Sport Facilities.
7. Basis of accounting
Registered persons normally account for VAT on the invoice ('sales') basis. This
means that they become liable for VAT by reference to invoices issued and sales
made by them irrespective of whether payment has actually been received
(seeInvoices Credit Notes).
However, certain persons may opt to account for VAT on the moneys received
('cash') basis i.e. by reference to payments actually received by them (see Money
Received Basis).

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8. Reverse charge/Self-accounting
VAT is normally charged and accounted for by the supplier of the goods or
services. However, in certain limited circumstances the recipient of goods or
services, rather than the supplier, is obliged to account for the VAT due. This
applies:

on the intra-Community acquisition of goods from another Member State (see Acquisitions from other EU Member
States)

on receipt from abroad of services that are taxable where received (see Supply of Services, paragraph 3)

on receipt from abroad of cultural, artistic or entertainment services from persons not established in the State
(seeSupply of Services, paragraph 9)

repair, valuation or contract work carried out on movable goods in another State in certain circumstances (seeSupply
of Services, paragraph 15)

where goods are installed or assembled for certain designated persons in the State by a supplier who is not
established in the State (see Registration, paragraph 8)

where intra-Community transport and ancillary services are supplied by a non-established person to an accountable
person in the State (see Supply of Services, paragraph 4)

where construction services are supplied to a principal contractor by a sub-contractor, whether or not the subcontractor is established in the State (see Registration, paragraph 8)

on the receipt of gas through the natural gas distribution system, or electricity, from a person not established in the
State by certain categories of persons in the State

on receipt of greenhouse gas emission allowances from another taxable person established in the State or abroad

where ownership of goods is transferred by way of a vesting order to NAMA

where a taxable person carries on a business in the State which consists or includes dealing in scrap metal

where there is a supply of construction work in the State between two connected persons

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9. Amount on which VAT is chargeable
The amount on which VAT is chargeable is the total sum the person supplying the
goods or services becomes entitled to receive, including all taxes, commissions,
costs and charges but excluding the VAT chargeable in respect of the transaction.

10. What are the rates of VAT?

There are a number of different rates of VAT applied in Ireland.
In general, the standard rate of VAT applies to the supply of goods and services in
Ireland. In specific circumstances VAT is charged at the reduced rate, a second
reduced rate, the zero rate and a special rate that applies principally to the livestock
sold by VAT registered traders.
Its worth noting that the reduced rates apply to a number of labour-intensive
services while the zero rate applies to many foods, oral medicines, childrens shoes
and childrens clothes.
A special scheme applies to agricultural supplies made by farmers who are
generally not required to register for VAT.
In addition to these rates there are a number of activities that are exempt from VAT.
These include many services supplied in the public interest, for example education,
public transport and areas of childcare.
The goods and services exempt from VAT, together with those liable to VAT at the
zero or reduced rates are all listed in VAT legislation in Schedules 1, 2 and 3 of the
Value Added Tax Consolidation Act.
See also:

Current and Historic Rates of VAT;

Information on Rates of VAT, for detailed information on rates; and

VAT Rate Search, to find the VAT rate that applies to the supply of particular goods and services from a nonexhaustive range.

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11. Right to deduct VAT
In computing the amount of VAT payable in respect of a taxable period, a
registered person may deduct the VAT charged on most goods and services which
are used for the purposes of the taxable business. No deduction may be made,
however, for the VAT on goods and services used for any other purpose (see VAT
not Deductible). Non-established sub-contractors providing construction services
that are subject to reverse charge may register for VAT if they wish to claim a
refund. (See VAT Registration).

12. VAT returns

A VAT-registered person normally accounts for VAT on a two-monthly basis
(January/February, March/April etc.). The return is made online on the Revenue
ROS system together with a payment for any VAT due. The due date for the
submission of the ROS VAT return is the 23rd of the month following the end of the
taxable period. For example, a return for the VAT period May/June is due by 23rd
July. (See Accounting for VAT).
13. Trade between different EU Member States
In the European Single Market, VAT is accounted for on sales of goods between
traders EU Member States by a system of intra-Community
supplies and acquisition of goods.The supplies are zero-rated in the EU Member
State of origin and VAT is accounted for by the VAT-registered recipient in the EU
Member State of destination.
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14. Imports (non-EU)
For VAT purposes imports are goods brought into Ireland from non-EU countries.
As a general rule, imported goods are liable to VAT at the point of entry into the
State, at the same rate as applies to the sale within the State of similar goods.
15. Exports (non-EU)
For VAT purposes exports are goods supplied subject to a condition that they are
to be transported to a place outside the EU. The zero rate of VAT applies to
exports.
16. Zero-rating scheme for qualifying businesses (Section 56 of the VAT
Consolidation Act 2010)
This scheme provides that an accountable person who derives not less than 75%
of their annual turnover from exports or intra-Community supplies of goods out of
the State, can apply to have most goods and services supplied to them zero-rated.
Intra- Community acquisitions and imports made by them will also be zero-rated.
The zero rating does not apply to supplies of goods or services which, in the normal
course would not be deductible - for example, passenger motor vehicles, petrol,
food, drink or most accommodation. A VAT-registered person who thinks they

might qualify under this scheme should make an application to the Revenue District
responsible for their tax affairs. SeeZero rating of Goods and Services. The
authorisation will take effect two weeks after the date of its issue. This is to allow
the authorised person sufficient time to forward copies of the authorisation to
his/her suppliers. Accordingly, a qualifying person should apply in good time before
the desired date of effect of the authorisation. Likewise when the authorisation is
nearing its expiration date an application should be made in advance of the
expiration date to avoid a lapse in the authorisation. Otherwise normal VAT rules
will apply.
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17. Property transactions
The main features of the VAT on Property rules are:

The first supply of newly developed property is taxable for a period of five years from completion

The first supply of newly developed residential property is always taxable

The second and subsequent supply is taxable for a period of two years following occupation

There is an option to tax the supply of properties where the supply would otherwise be exempt

Lettings are exempt but where the letting is between unconnected parties there is an option to tax the rents. The option
to tax also applies where the parties are connected but the lessee is entitled to deduct over 90% of the VAT charged
on the rent

A Capital Goods Scheme which ensures that the amount of VAT deductible on acquisition or development of a
property will correspond with the use of the property over a period of 20 years (10 years in the case of refurbishment
work)

There are transitional rules to ensure that properties that have been developed under the old system will pass into the
new system with a minimum of disruption

The system is described in detail in the Guide to VAT on Property.

18. Flat-rate farmers
Farmers who do not register for VAT are compensated for the VAT they are
charged on their purchases by means of a flat-rate addition to the prices at which
they sell their agricultural produce and agricultural services to VAT-registered
persons. These farmers are known in the VAT system as flat-rate farmers. A

farmer may nonetheless be obliged to register in respect of the intra-Community

acquisition of goods, certain services received from abroad and certain other
supplies. (See (VAT Registration).
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19. Repayment of VAT to foreign businesses
In general, persons who are engaged in business outside the State but who are not
engaged in business in the State can claim a refund from Revenue of VAT charged
to them in respect of services and goods supplied to them in the State for business
purposes, where the VAT would be deductible by them if they were accountable
persons in the State. (See:eBrief No. 90/2009: New Electronic VAT Refund (EVR)
procedures with effect from 1 January 2010).
Since 1st January 2010 the procedure for the reimbursement of VAT incurred by
EU taxable persons in Member States where they are not established has been
replaced by a fully electronic procedure, thereby ensuring a quicker refund to
claimants. Refund applications must be made through an electronic portal set up by
the Member State of establishment of the applicant. Each application is subject to
an electronic approval process in the Member State of establishment before being
passed on to the Member State where the VAT was incurred by the business (the
Member State of refund).
20. Repayments to unregistered persons
There are special provisions for repayment of VAT incurred by unregistered
persons in certain cases e.g. on farm buildings by unregistered farmers, on
supplies to unregistered sea-fishermen, on certain supplies to disabled persons
and to diplomats. See Repayments to Unregistered Persons.
21. Records to be kept
A VAT-registered person must keep full and true records of all business
transactions which affect their liability to VAT. The records must be kept up to date
and must be sufficiently detailed to enable them to accurately calculate a liability or
repayment and to enable Revenue to check the calculation, if necessary. Records
must normally be retained for six years from the date of the latest transactions to
which they refer, see Records to be kept.
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22. Appeals
A person has the right to appeal against Section 110 estimates, Section 111
assessments, a determination made by Revenue in relation to the rate of VAT
chargeable and in relation to whether an activity is an exempt activity. A person
also has the right of appeal in relation to charges made in accordance with
regulations, for example, in connection with an application for de-registration, and
in relation to all claims for repayment. (See Accounting for VAT)
Any question of fact or law may be brought before the Appeal Commissioners, and
the taxpayer if dissatisfied with the decision of the Appeal Commissioners may
have the appeal re-heard by the Circuit Court. Both the taxpayer and Revenue may
appeal to the High Court on a point of law and from there to the Supreme Court. As
VAT is governed by EU law, the Appeal Commissioners or any of the courts may
refer the case to the European Court of Justice (ECJ).
Matters which may be appealed also include:

a charge to tax in connection with the issue of an incorrect invoice or the issue of an invoice showing tax by a nonregistered person,

compulsory group registration, refusal to allow group registration and the cancellation of an existing group registration

a determination of open market value in relation to certain supplies between connected persons

the refusal by Revenue to authorise a person to operate as a refunding agent for the VAT Retail Export Scheme

the treatment of a person who allows supplies to be made on land owned, occupied or controlled by them, as jointly
and severally liable with another person

a charge to tax in accordance with regulations

a claim for repayment of VAT

a refusal by Revenue to treat a person as an accountable person

a refusal by Revenue to accept that an expression of doubt is genuine (see paragraph 23 below)

See

(Tax and Duty Appeals Manual PDF, 3.18MB).

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23. Letter of expression of doubt

VAT law provides that where a person is in doubt about the application of VAT law
to a transaction, including the rate of VAT, he/she may lodge a letter of Expression
of Doubt with Revenue. If the expression of doubt is accepted by Revenue as
genuine, interest will not apply to any tax payable until the matter in doubt is
resolved.
In the event that Revenue refuses to accept that the expression of doubt is
genuine, it is open to the taxpayer to have such refusal referred to the Appeal
Commissioners.
24. Internal Review procedures
Where a taxpayer wishes to seek a review of Revenue's handling of their tax
affairs, or a decision made by a Revenue official, they can ask for an internal
review to be carried out either:

by a senior Revenue official at a local level who was not involved in the original decision

by Revenues Internal Reviewer alone

jointly by Revenues Internal Reviewer and an External Reviewer

Requests for an internal review can be made to the Internal Review Unit, Revenue
Commissioners, Dublin Castle, Dublin 2.
25. Revenue on-line Service (ROS)
ROS is a secure on-line service that enables taxpayers and agents to interact
electronically with Revenue. It offers taxpayers a quick, secure and cost effective
method to manage their tax affairs online. ROS enables a taxpayer to view their
own current position with Revenue for various taxes and levies, to file tax returns,
including the VAT 3 returns and annual Return of Trading Details (RTD) and to
make payments online in a variety of methods. Traders can register for ROS by
accessing the ROS website.
April 2014
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