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VAT question

jasushaw · 2018-09-21 16:35:21

Hi If i have materials valued at 400 and labour costing around 600 .Do i charge vat at 13.5% on the price. Or do i charge 23% on 400 and 13.5% on the labour and add them together getting total vat? Thanks

21-09-2018 05:35PM

#1

jasushaw

Registered Users, Registered Users 2 Posts: 151 ✭✭

Join Date: February 2009

Posts: 78

Hi

If i have materials valued at 400 and labour costing around 600 .Do i charge vat at 13.5% on the price. Or do i charge 23% on 400 and 13.5% on the labour and add them together getting total vat?

Thanks

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Comments

#2 24-09-2018 03:33PM

heretothere

Registered Users, Registered Users 2 Posts: 635 ✭✭✭

Join Date: March 2013

Posts: 591

13.5% it's called the two - thirds rule. If the cost of the materials exceeded 2/3 of the whole invoice then you'd charge 23% as it doesn't you charge 13.5%. Or if % work better for you, the most of the material would have to exceed 66.66% of the entire invoice.

https://www.revenue.ie/en/vat/vat-on-services/services-taxable-at-the-rate-of-the-goods-the-two/index.aspx

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