S.I. No. 93/1992:

VALUE-ADDED TAX (DETERMINATION OF TAX DUE BY REFERENCE TO MONEYS RECEIVED) (AMENDMENT) REGULATIONS, 1992.

VALUE-ADDED TAX (DETERMINATION OF TAX DUE BY REFERENCE TO MONEYS RECEIVED) (AMENDMENT) REGULATIONS, 1992.

The Revenue Commissioners, in exercise of the powers conferred on them by sections 14 and 32 of the Value-Added Tax Act, 1972 (No. 22 of 1972), hereby make the following Regulations:

1. These Regulations may be cited as the Value-Added Tax (Determination of Tax Due by reference to Moneys Received) (Amendment) Regulations, 1992.

2. Regulation 3 of the Value-Added Tax (Determination of Tax Due by reference to Moneys Received) Regulations, 1986 ( S.I. No. 298 of 1986 ) is hereby amended by the substitution of the following paragraph for paragraph (10):

"(10) Where an adjustment of liability as provided for in paragraph (6) or (7) is to be made by reason of the cesser in a taxable period of an authorisation under paragraph (3), in no case shall an aforementioned adjustment be made by reason of that cesser for any taxable period which ends on a date which is more than six years before the date of cessation of the taxable period immediately preceding that in which the aforementioned cesser took place, and in no case shall an adjustment be made for any taxable period if that adjustment would, apart from this paragraph, be made by reason only of a cesser resulting from the death of the taxable person.".

GIVEN this 16th day of April, 1992.

F. CASSELLS,

Revenue Commissioner.

EXPLANATORY NOTE.

These Regulations amend the Value-Added Tax (Determination of Tax Due by reference to Moneys Received) Regulations, 1986 ( S.I. No. 298 of 1986 ) which deal with the terms and conditions relating to the operation of the moneys received basis of accounting for VAT. The amendment substitutes a new paragraph for paragraph (10) of Regulation 3 of the Principal Regulations which deals with the adjustment of liability following a change in the basis of accounting. The amendment means that an adjustment is required in all cases of a change from the moneys received to the invoice basis of accounting. This adjustment will be calculated by reference either to the position at the time of authorisation for use of the moneys received basis of accounting or to the position that existed six years previous to the change of basis, whichever is the later. As at present, no adjustment will be required where the cessation of use of the moneys received basis of accounting results from the death of the taxable person.