Invoices issued to principal contractors in respect of construction services should not include VAT. Principal contractors are customers who have to operate the RCT scheme i.e. deduct tax @ 35% where the Principal contractor does not hold a current Relevant Payments Card.
2. Invoices issued to customers who are not principal contractors should include VAT as normal
3. Principal contractor will account for the VAT on construction services directly to Revenue.
4. Invoices issued to principals
a. should show all details that would appear on VAT invoice except VAT rate and VAT amount.
b. should show “VAT on this supply to be accounted for by the principal contractor”
RCT will be deducted by the principal contractor (where required) on the VAT exclusive amount. The amount of RCT deducted will be reduced.
Any queries on the above give me a call on 091 763817 or email me on oliver@taxreturnhelp.ie