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
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.
- 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