Value Added Tax (VAT)

VAT is a tax on consumer spending. It is collected by VAT-registered traders on their supplies of goods and services within Ireland, for consideration, to their customers.

The effect of offsetting VAT on purchases against VAT on sales is to impose the tax on the added value at each stage of production – hence Value-Added Tax. For the final consumer, not being VAT-registered, VAT simply forms part of the purchase price.

The burden of administering VAT falls on the VAT-registered traders. Severe penalties and interest apply where businesses get the application of the VAT rules wrong. WENTWORTH professionals can provide expert advice on your VAT obligations, such as:

• VAT registration
• VAT return preparation
• Return of trading details forms
• VAT 13A authorisation

We also provide specialist services in relation to VAT on property transactions, a particularly complex VAT area. Our experienced tax professionals and legal experts can assist with various VAT on property transactions including acquisitions, disposals, leasehold arrangements and capital good scheme records and international taxation.

Relevant Contracts Tax (RCT)

RCT applies to payments made by a principal contractor to a subcontractor under a relevant contract. A relevant contract is a contract to carry out, or supply labour, for the performance of relevant operations in the construction, forestry or meat processing industry. RCT applies to both resident and non-resident contractors operating in these industries.

With effect from 1 January 2012, all principal subcontractors are requested to use the electronic RCT system (eRCT). The eRCT should be used for the following;

• Notify Revenue of all contracts online (Contract Notification)
• Notify payments online (Payment Notification)
• Provide a copy or details of the Deduction Authorisation to the Subcontractor
• Submit monthly/quarterly returns online (Deduction Summary / Return)
• Make payments of RCT deducted

Under the eRCT system, a principal contractor must notify Revenue of the gross payment, prior to making the payment to the subcontractor. Revenue will respond by authorising the principal to deduct tax, if any, from the payment.

WENTWORTH can advise you through all steps of this process, including:

• Registration for RCT
• Notifications under the eRCT system
• RCT payments and returns