Notice of the making of this Statutory Instrument was published in

"Iris Oifigiúil" of 4th November, 2014.

I, MICHAEL NOONAN, Minister for Finance, in exercise of the powers conferred on me by section 66 (2) of the Finance (No. 2) Act 2013 (No. 41 of 2013), hereby order as follows:

1. This Order may be cited as the Finance (No. 2) Act 2013 (Tax Treatment of Horses and Greyhounds) (Commencement) Order 2014.

2. The 1st day of January 2015 is appointed as the day on which subsection (1) of section 66 of the Finance (No. 2) Act 2013 (No. 41 of 2013) comes into operation.

GIVEN under my Official Seal,

30 October 2014.

MICHAEL NOONAN,

Minister for Finance.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation).

This order appoints 1 January 2015 as the date of coming into effect of the provisions of section 66 (1) of the Finance (No. 2) Act 2013 , which provides for changes to the Value-Added Tax Consolidation Act 2010 in relation to the VAT treatment of horses and greyhounds.

Section 66(1) provides that the second reduced VAT rate, currently 9 per cent, will apply to supplies of horses not intended for use in the preparation of foodstuffs or in agricultural production, to the supply of live greyhounds and to the hire of horses. These supplies had formerly been chargeable to VAT at the 4.8 per cent super-reduced VAT rate. However, the 4.8 per cent VAT rate will continue to apply to livestock in general including supplies of horses intended for use in the preparation of foodstuffs or in agricultural production.

Section 66(1) also provides that the reduced VAT rate, currently 13.5 per cent, will apply to the supply of all insemination services, including ‘no foal, no fee’ insemination services. This means that insemination services for all animals will apply at the reduced rate of 13.5 per cent. Furthermore, the reduced rate will also apply to supplies of livestock and horse semen.