Withholding RCT and Reverse Charge VAT

As those of our users involved in the Construction Industry and certain other sectors know, where a prime contractor / sub contractor relationship exists it may be necessary to withhold RCT and/or to account for VAT on a reverse charge basis. We have now added functionality to Mind My Business to enable this. The changes can be found as follows

Invoice Form

The Invoice form now has two new fields

• Reverse Charge VAT? – tick this box to account for VAT on purchase invoices or credit notes from your subcontractor on a reverse charge basis. The relevant adjustments to your next VAT3 will be made by the system for you.
• RCT Deduction % – Enter the % to be deducted as advised by Revenue on your purchase invoices from your sub contractor or your sales invoices to your prime contractor. The system automatically adjusts your payables and/or receivables ledger. It also maintains your RCT balance in a control account in your Trial Balance.

Reports

• Your VAT3 T1 and T2 fields are calculated to take account of any Reverse Charge VAT
• In the Invoices Tab a report of all Sales and Purchase Invoices which include an RCT Deduction has been added

We strive to make life easier for small Irish businesses