S.I. No. 313/1997:

FINANCE ACT, 1997 (COMMENCEMENT OF SECTIONS 101 AND 113) ORDER, 1997.

FINANCE ACT, 1997 (COMMENCEMENT OF SECTIONS 101 AND 113) ORDER, 1997.

I, Charlie McCreevy, Minister for Finance, in exercise of the powers conferred on me by section 166(10)(f) of the Finance Act, 1997 (No. 22 of 1997), hereby order as follows:

1. This Order may be cited as the Finance Act, 1997 (Commencement of Sections 101 and 113) Order, 1997.

2. The 1st day of September, 1997, is hereby appointed as the date on which sections 101 and 113 of the Finance Act, 1997 (No. 22 of 1997), shall take effect.

GIVEN under my Official Seal, this 14th day of July, 1997.

Charlie McCreevy

Minister for Finance.

EXPLANATORY NOTE

This Order appoints the 1st day of September, 1997 as the date for coming into operation of sections 101 and 113 of the Finance Act, 1997 . Section 101 amends section 8(3)(a) of the VAT Act to provide that a farmer whose supplies of horticultural products to final consumers exceed or are likely to exceed £40,000 per annum, or whose supplies of a combination of retail agricultural products and agricultural services exceed or are likely to exceed £20,000 per annum is obliged to register and account for VAT on such supplies. It also amends the proviso to section 8 (3) of the VAT Act to prevent farmers engaged in the supply of retail horticultural products or agricultural services from separating these activities into smaller units in order to remain under the VAT registration limit. Section 113 amends the Sixth Schedule to the VAT Act to provide for the application of the 12.5 per cent rate of VAT to certain horticultural products.