S.I. No. 34/1998:

VALUE-ADDED TAX (RETAIL EXPORT SCHEME) REGULATIONS, 1998.

VALUE-ADDED TAX (RETAIL EXPORT SCHEME) REGULATIONS, 1998.

The Revenue Commissioners, in exercise of the powers conferred on them by subsections 13(1), 13(1A) (inserted by the Finance Act, 1997 (No. 22 of 1997)) and section 32 of the Value-Added Tax Act, 1972 (No. 22 of 1972), and with the consent of the Minister for Finance, hereby make the following Regulations:

1. (1) These Regulations may be cited as the Value-Added Tax (Retail Export Scheme) Regulations, 1998.

(2) These Regulations shall come into operation on the first day of March, 1998.

2. (1) In these Regulations--

"the Act" means the Value-Added Tax Act, 1972 ;

"traveller" and "traveller's qualifying goods" have the meanings assigned to them, respectively, by subsection 13(3B) (inserted by the Finance Act, 1997 (No. 22 of 1997)) of the Act.

(2) In these Regulations--

(a) a reference to a Regulation is to a Regulation of these Regulations, and

(b) a reference to a paragraph or subparagraph is to a paragraph or subparagraph of the Regulation in which the reference occurs,

unless it is indicated that reference to some other Regulation is intended.

3. The application of the rate of zero per cent., specified in subsection 11(1)(b) of the Act, to a supply of goods or services specified in subsection 13 (1A) of the Act shall be subject to the following conditions:

(a) that the supplier keeps a record of the details of documentary proof inspected by him or her confirming that the purchaser was a traveller;

(b) that at the time of supply, the supplier issues an invoice to the traveller showing the following details--

(i) the name, address and tax registration number of the supplier,

(ii) the name and address of the traveller,

(iii) the date upon which the invoice is issued,

(iv) a description of the goods supplied,

(v) the amount payable by the traveller at the time of the sale of the goods,

(vi) the tax charged, if any, and

(vii) the exchange rate or method to be used in determining the exchange rate, if repayment of the tax is to be made to the traveller by the supplier in a currency other than the currency of the State;

(c) that the traveller duly signs the completed invoice, referred to at subparagraph (b), in duplicate;

(d) that the notification of the charges made by the supplier, referred to in subsection 13 (1A) (iii) of the Act, is made at the latest

(i) where the goods are exported by the traveller, at the time of the handing over of the goods in question to the traveller,

(ii) where the goods are exported on behalf of the traveller, at the time when the goods in question are supplied to the traveller,

and where an amount is charged to the traveller for procuring a repayment of tax or arranging for the zero-rating of the supply, such amount does not exceed the amount notified in accordance with the said subsection 13 (1A) (iii);

(e) that the time limit for making a repayment to the traveller, referred to in subsection 13 (1A) (ii) of the Act, is not later than the twenty-fifth working day following the receipt by the supplier of the traveller's claim to repayment;

(f) that the supplier keeps a copy of the invoice issued in accordance with subparagraph (b), duly signed by the traveller, and keeps a record in relation to each invoice of--

(i) the net amount (being the amount of tax charged to the traveller minus any commission or fee charged by the supplier to the traveller in respect of the transaction in question) repaid by the supplier to the traveller in respect of the supply in question, expressed in the currency in which the repayment was made,

(ii) where appropriate, the exchange rate used,

(iii) the date and method of such repayment, and

(iv) proof in accordance with Regulation 4, that the goods were exported by or on behalf of the traveller.

4. (1) In the case where the goods are exported by the traveller, the proof of export of the goods required shall be the invoice issued in accordance with Regulation 3 (b) in respect of that supply, duly certified--

(a) by an officer of the Revenue Commissioners assigned to a customs office in the State, or

(b) where the goods have been exported via another Member State of the Community, by a customs officer in that Member State, or

(c) in such other manner as the Revenue Commissioners may deem acceptable for the purpose.

(2) In the case where the goods are exported on behalf of the traveller, the proof of export of the goods shall take the form of documentary evidence of export, duly certified by an officer of the Revenue Commissioners assigned to a customs office in the State, or, in the case where the goods are exported from another Member State of the Community, duly certified by a customs officer in that Member State.

5. The Value-Added Tax (Exported Goods) Regulations, 1992 ( S.I. No. 438 of 1992 ), are hereby revoked.

GIVEN this 4th day of February, 1998.

D. B. QUIGLEY,

Revenue Commissioner.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance, this 9th day of February, 1998.

CHARLIE McCREEVY,

Minister for Finance.

EXPLANATORY NOTE.

These Regulations provide the conditions for granting relief from VAT on goods bought by visiting (non EU) tourists or by Irish residents who are departing the EU with the intention of taking up residence outside the EU. The goods must be exported in the purchaser's personal luggage or put on board a ship or aircraft which is travelling to a non-EU destination, by the end of the third month following the month of purchase. The purchaser must get the benefit of the relief by 25 working days after lodging a valid claim, at the latest, and he/she must be made aware of the specified details concerning the transaction.