RCT

josvill2010

Hi

In the UK if you are involved in Construction as in Ireland you are operating under RCT rules

In our case in Ireland, we also service the machines that we have helped to built (Wind Turbines). In the UK the service doesnt fall within RCT and VAT applies. Is it the same in Ireland?

Regards,
j

Harmar

Just looking for clarification on below

Recently registered as a Principal Contractor as i work in the construction industry.

I have sub-contracted works out and have been billed for the completed works.

The contractor has no C2 so is happy to for me to deduct 35%

I have the RCTDC form.

The contractor has charged me €1,200.00 plus Vat at 13.5% = €1,362.00

I am not sure which figure i am to deduct the 35% of..either €1,200.00 or €1,362.00

If you could update me on this matter i would appreciate it

josvill2010

1. They have to bill you without VAT and quote on the invoce
'VAT ON THIS SUPPLY TO BE ACCOUNTED FOR BY THE PRINCIPAL CONTRACTOR'
2. You both need to fill up the RCT 1
3. You pay them €780 and the remaining €420 to Revenue the same day that you send the money to the vendor. Together with the payment to the vendor you need to send them the RCTDC known as the pink form, which the vendor will use as a 'cheque' to claim from Revenue

All the best,
j

josvill2010

in your books you do the following

Dr PnL 1200
Dr VAT 162

Cr Vendor 1200
Cr VAT 162
( The VAT cancel each other out - Reverse charge)

Harmar

Hi J,

Cheers for your update.

Very helpful.

Regards,

H