Non-compliance with Return of Trading Details obligations to impact RCT rates of subcontractors
At a TALC meeting, Revenue stated that non-compliance with obligations to file VAT Return of Trading Details may impact a contractor’s entitlement to the zero-rate for Relevant Contracts Tax purposes.
VAT registered persons are required to complete an annual form known as the Return of Trading Details (RTD). This form is a statistical form which records the net value of goods and services acquired and supplied by the person, broken down by the different VAT rates.
An e-RTD system was implemented on ROS in 2013. Revenue withhold tax refunds where RTDs are outstanding and restrictions to a contractor’s entitlement to the zero-RCT rate will apply going forward according to Revenue. This could have serious consequences for a contractor’s cash flow so early compliance with RTD obligations is recommended.