VAT - Reverse Charge on Construction Services – Notifications to Principal Contractors and Subcontractors with a Direct Debit facility

Details of the new rules for Principal Contractors and Subcontractors which came into effect on 1 September were contained in Revenue e-Brief No.26/08.

A letter and a summary leaflet outlining the new VAT rules issued to all principal contractors, sub-contractors and agents in late June/early July, details of which were contained in Revenue e-Brief No. 30/08

From Monday 8 September, letters are issuing to all customers who are affected by the VAT Reverse Charge on construction services and who make VAT payments by Direct Debit. The letters invite these customers to review the amount of their Direct Debit payments. Principal contractors are requested to complete a form confirming that they have done so and give details of any changes required within 14 days of the issue of the letter. Subcontractors are also requested to complete the form where changes are required. The letters will issue in batches during the month of September with the letters to Principals and Principal/Subcontractors issuing first followed by the letters to subcontractors (both established and non-established) later in the month.

To view copies of the letters that are issuing, visit the Revenue Website and click on: Construction Services - New VAT rules on the homepage.