Value Added Tax Consolidation Act 2010 section 39

General provisions on consideration

Section 39 sets out the rules for determining the taxable amount when the consideration actually received for a supply differs from the amount the supplier was entitled to receive, and provides for relief where the consideration falls short.

• Where the consideration actually received exceeds the agreed price, VAT is chargeable on the higher amount actually received (excluding the VAT element itself).
• Where the consideration received is less than expected, or no consideration is received, relief may be granted by repayment or otherwise in accordance with regulations, provided the shortfall does not arise from a property letting that is a taxable supply under the transitional immovable goods rules.
• The relief for a shortfall does not apply to the taxable letting of immovable goods treated as a supply of goods under the transitional property provisions in section 95.
• Where a supplier allows a reduction or discount after issuing an invoice, no relief is available until the supplier issues a VAT credit note to the customer in accordance with section 67(1)(b).