Irish Revenue Provides New Guidance on VAT Treatment of Construction Services

• The Irish Revenue has issued eBrief No. 060/24, providing new guidance on the tax treatment of construction services.
• The guidance includes a new Tax and Duty Manual (TDM) on the VAT treatment of Construction services.
• Construction services not subject to Relevant Contracts Tax (RCT) are taxed under normal VAT rules.
• Supplies of construction services subject to RCT are treated on a reverse charge basis, including supplies between subcontractors and principal contractors or between connected persons in the State.
• The TDM explains the applicable VAT rates, with a reduced rate of 13.5% for various construction services and a standard rate of 23% for other building materials, scaffolding, and fittings.

Source Orbitax

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