Value Added Tax Consolidation Act 2010 section 44

Non-business use of immovable goods

Section 44 sets out how to calculate the taxable amount when immovable goods (property) used in a business are diverted to private or non-business use.

• Where business property is put to private or non-business use, a self-supply of services arises under section 27(2), and tax must be accounted for on a deemed taxable amount.
• The taxable amount for each two-month VAT period is one-sixth of one-twentieth of the original cost of acquiring or developing the property, adjusted to reflect the actual proportion of non-business use in that period.
• Cost includes either the amount on which VAT was actually charged on acquisition or development, or, where a business transfer applied under section 20(2)(c), the amount on which VAT would have been charged had the transfer not been treated as a non-supply.
• Revenue may make regulations specifying how to identify the proportion of non-business use and how to calculate the resulting taxable amount.