What Vat % do you guys charge for labour and material?

Calgary22

Guys what is the rate ye charge? i have asked a few dudes on here and got a different vat % each time i am trying to find out how much i charge for labour and materials for when pricing a job. I have been told 21.5% , 13.5% and 23% which one is right or is there such a thing?:D

fred funk }{

13.5% for labour and 23% for goods but you don't have to seperate it like that on the invoice.

It's calculated by using the 2/3 rule. If more than 2/3 of the net cost of the job is made up of the costs of materials then you should charge 23% as you are effectively selling the goods.

The opposite applies for labour. For example, if you do a job and the materials costs €200 and you spend a couple of days of labour on the job and charge the customer €400 labour then you should charge 13.5% VAT on the €600, total €681.

In reality, nearly every job you'll do will be 13.5%.

red sean

If you're registered for Vat you'll be aware of the correct rate.
If you're not registered, you should'nt be charging Vat.

Calgary22

Great help red sean thanks so much:D