How the DCPL applies

Company A manufactures ready-to-pour concrete that is liable to the reduced Value-Added Tax (VAT) rate of 13.5%, within the State.

On 1 September 2023, Company A sells 30 tonnes of their product to Mary, who is a building contractor operating within the State. Company A has sold a concrete product within the scope of the levy while business is conducted in the State. Therefore, the sale to Mary is a chargeable supply. As this is the first chargeable supply of that product, Company A must apply the levy to the sale.

When Mary uses the ready-to-pour concrete in her business, a supply arises. However, as it is not the first supply of the product, a charge to the levy does not arise on that supply.

Company B manufactures concrete blocks, that are concrete products within the scope of the levy.

On 1 October 2023 Company B sells and ships 500 units to a building contractor based in France. Company B has sold concrete products within the scope of the levy while business is conducted  in the State. Therefore, the sale is a chargeable supply. As this is the first supply of that product Company B must apply the levy to the sale.

Sam purchases 300 chargeable concrete blocks in Northern Ireland and transports them into the State.

On 1 November 2023 Sam uses the concrete blocks in the building of an extension to his house. As Sam has used concrete products within the scope of the levy in a private capacity within the State, a chargeable supply has arisen. Sam’s use of the concrete blocks is the first supply of the blocks within the State and a charge to the levy arises. Sam must:

• register for DCPL before using the product

• pay a levy of 5% of the open market value of the product on the date of first supply

   and

• file a DCPL return.

The date of first supply in this scenario is the date Sam first uses the concrete blocks. It is not the date that Sam brought the blocks into the State.