Value Added Tax Consolidation Act 2010 section 50

Provisions in relation to certain supplies

Section 50 sets out special VAT charging rules for three situations: goods manufactured from customer-supplied materials, catering services using customer-supplied food, and the separate letting of machinery or installations attached to property.

• Where a manufacturer makes goods from materials supplied by the customer and the VAT rate on the finished goods exceeds the rate on the materials, the manufacturer must pay additional VAT on the value of the materials at a rate equal to the difference between the two rates.
• Where a customer arranges for zero-rated food or drink to be supplied to a caterer providing a catering service, the caterer must charge VAT on the value of that food or drink in addition to VAT on the catering charge itself — an anti-avoidance measure preventing the separation of food supply from the catering service.
• Machinery or business installations that form part of a property but are let separately from the property are subject to VAT at the rate that would apply if they were being hired as movable goods, rather than at the rate for lettings of immovable goods.
• In each case the additional or adjusted liability is imposed on top of any other VAT liability the supplier already has under the Act.