[(1)(a)]¹ Where, but for the provisions of section 6, tax would be chargeable in respect of the [supply]² of any of the services [to which [paragraph 11 of Schedule 1]³ relates]⁴, a person [supplying]² any such services may, in accordance with regulations, waive his right to exemption from tax in respect thereof. Any such waiver shall extend to all the [services to which [that paragraph]⁵ relates]⁴ that the person [supplies]².

[Provided that where a person waives his right to exemption from tax in respect of the leasing or letting of goods which are subject to an agreement of the type referred to in section 4(2C)(a) then that waiver shall only apply to the supply of services under that agreement.]⁶

[(b) A waiver of exemption from tax under this subsection shall not apply or be extended to any disposal of an interest in immovable goods which is deemed to be a letting of immovable goods to which [paragraph 11 of Schedule 1]⁷ applies by virtue of section 4(3A)(a)(ii).]⁸

(1A)(a) Notwithstanding subsection (1)(a), a person shall not waive his or her right to exemption from tax on or after [2 April 2007]¹ in respect of a letting of immovable goods to which [paragraph 11 of Schedule 1]² relates which is a letting of all or part of a house, apartment or other similar establishment, to the extent that those immovable goods are used or to be used for residential purposes, including any such letting-

(i) governed by the Residential Tenancies Act 2004,

(ii) governed by the Housing (Rent Books) Regulations 1993 (S.I. No. 146 of 1993),

(iii) governed by section 10 of the Housing Act 1988,

(iv) of a dwelling to which Part II of the Housing (Private Rented Dwellings) Act 1982 applies, or

(v) of accommodation which is provided as a temporary dwelling for emergency residential purposes,

and any waiver of exemption from tax which applies under this section shall not extend to such a letting of immovable goods where those goods are acquired or developed on or after [that date]³.

(b) For the purpose of applying paragraph (a), immovable goods are considered to be acquired when a person enters into a binding contract in writing for the acquisition of those goods or of an interest in those goods, or for the construction of those goods, and are considered to be developed when an application for planning permission in respect of the development of those goods as a house, apartment or other similar establishment is received by a planning authority.

(2) A waiver of exemption under subsection (1) shall have effect from the commencement of such taxable period as may be agreed between the person making the waiver and the Revenue Commissioners and shall cease to have effect at the end of the taxable period during which it is cancelled in accordance with subsection (3).

(3) Provision may be made by regulations for the cancellation, at the request of a person [or in accordance with [subsection (3), (7) or (9) of section 7B]¹]², of a waiver made by him under subsection (1) and for the payment by him to the Revenue Commissioners as a condition of cancellation of such sum (if any) as when added to the total amount of tax (if any) due by him in accordance with section 19 in relation to the supply of services by him to which the waiver applied is equal to the total of-

(a) the amount of tax deducted by him in accordance with section 12 in respect of tax borne or paid in relation to the supply of such services,

[(aa) the amount of tax deducted by him in accordance with section 12, prior to the commencement of the letting of the immovable goods to which the waiver relates, in respect of or in relation to his acquisition of his interest in, or his development of, those immovable goods,]³

(b) the amount of tax that would be deductible by him in accordance with section 12 if tax had been chargeable on the transfer of ownership of goods to him in respect of which the provisions of section 3(5)(b)(iii) were applied, and those goods were used by him in the supply of such services, and

(c) the amount of tax that would be deductible by him in accordance with section 12 if tax had been chargeable on the supply to him of goods or services in respect of which the provisions of [paragraph 7(7) of Schedule 2]⁴ were applied, and those goods or services were used in relation to the supply of services by him to which the waiver applied.

(4) Where exemption has been waived under subsection (1) in respect of the [supply]¹ of any such service, tax shall be charged in relation to the person making such waiver during the period for which such waiver has effect as if the service to which the waiver applies was not specified in [Schedule 1]².

(5)(a) No waiver of exemption from tax in accordance with this section shall commence on or after 1 July 2008.

(b) Any waiver of exemption from tax which applies under this section shall not extend to any letting of immovable goods where those goods are acquired or developed on or after 1 July 2008.

(c) For the purpose of applying paragraph (b), a waiver of exemption, which is in place on 18 February 2008 in respect of the letting of immovable goods which are undergoing development on that day by or on behalf of the person who has that waiver, may extend to a letting of those immovable goods.

(6) Where a person cancelled his or her waiver of exemption before 1 July 2008 then, for the purposes of applying section 12E, the adjustment period (within the meaning of that section or, as the context may require, the period to be treated as the adjustment period in accordance with section 4C(11)) in relation to any capital good the tax chargeable on that person’s acquisition or development of which that person was obliged to take into account when that person made that cancellation, shall be treated as if it ended on the date on which that cancellation had effect.