Construction industry

Relevant Contracts Tax (RCT)

If you are self-employed in the construction industry, you may be a principal contractor or a subcontractor (or both). RCT applies when a subcontractor is hired by a principal contractor to carry out construction operations under a relevant contract. All RCT transactions are submitted through the Revenue Online System (ROS).

VAT reverse charge

Value Added Tax (VAT) is normally charged by the person supplying the goods or services. However, under RCT, the person receiving the goods or services (the principal contractor) calculates VAT and pays it directly to Revenue. The principal contractor accounts for VAT as if they had supplied the service. This is known as VAT reverse charge. It applies to subcontractors involved in the construction industry only.

Next: Tax obligations of non-resident contractors