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VAT: 2/3 Rule in opposite direction?

JohnCleary · 2019-01-04 14:48:31

Hi all, I'm aware of the 2/3 VAT rule in the following: Parts - 200 Labour - 80 Both parts & labour charged @ 23% However, what if it's the other way round? Parts - 80 Labour - 200 Would the VAT charge be 13.5% or 23%? Or would you charge 2 VAT rates? Many thanks.

04-01-2019 2:48pm

#1

JohnCleary

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Posts: 9265

Hi all,
I'm aware of the 2/3 VAT rule in the following:
Parts - 200
Labour - 80

Both parts & labour charged @ 23%

However, what if it's the other way round?
Parts - 80
Labour - 200

Would the VAT charge be 13.5% or 23%? Or would you charge 2 VAT rates?

Many thanks.

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Comments

#2 04-01-2019 3:38pm

Calahonda52

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Posts: 12023

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

if the breakdown fails the 2/3 rule then higher rate, else lower rate

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