Value Added Tax Consolidation Act 2010 Schedule 1 paragraph 12

Other supplies of goods

Schedule 1 paragraph 12 exempts from VAT the supply of goods where the seller was not entitled to deduct any of the VAT incurred on acquiring or using those goods.

• Where a person sells goods that were used in their business, the supply is exempt from VAT if the person could not deduct any of the VAT originally borne on those goods.
• The exemption applies only to movable goods — it does not cover immovable goods (such as property) or goods treated as self-supplies under section 19(1)(h).
• All three conditions must be met: the goods were used for business purposes, VAT was borne on their acquisition or application, and none of that VAT was deductible.
• A common example is the sale of a motor car by a business that is not a motor dealer, since VAT on cars is generally non-deductible.