VAT - Reverse Charge on Construction Services

- New rules for Principal Contractors and Sub-contractors from 1st September 2008.

The new rules apply to principal contractors and sub-contractors involved in construction operations to which RCT applies (but excluding haulage for hire). From 1 September 2008 the charge the sub-contractor makes to a principal contractor does not include VAT. Instead the principal contractor calculates the VAT on the amount charged by the sub-contractor and accounts for the VAT directly to the Revenue Commissioners through his/her VAT return.