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0% VAT Reverse Charge (Self-accounting) Construction

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Transaction Type: Sales Invoice and Sales Credit Note

Example: supply of construction work

Required:

  • Suppliers Name and address (you the subcontractor)
  • Suppliers (your business) VAT Registration Number
  • Customers Name and address
  • Description of goods and services
  • Default 0% VAT Rate to be used and that the 0% vat rate clearly identified on the Sales Invoice

Important:

The invoice should contain the statement ‘VAT on this supply to be accounted for by the Principal Contractor’.

Principal Contractor must report imputed VAT in T1 (sales) and T2 (purchases) i.e. they must record what VAT they would have been charged and claim back that same amount

https://www.revenue.ie/en/vat/what-is-vat/reverse-charge-self-accounting.aspx

Click to access reverse-charge-construction.pdf

Revenue Commissioners Tax Documents

VAT 3: (VAT Return)

Record the VAT amount of transactions only

Box T1

No VAT, not required

RTD: (Return of Trading Details)

Record the NET amount of transactions only

Box D1