- 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
