Does RECI membership usually mean registered for VAT and RCT?

Calahonda52

I have a project where my client is availing of the Home Renovation Improvement Scheme (HRI) which requires VAT and RCT registration by the different contractors.

The spend is already over the 4,405 euro per VAT minimum spend.

She needs some electrical work that will require a RECI cert but VAT/RCT registration seems somewhat elusive in the quotes she has got.

Thanks

Hoagy

You can read the RECI rules of registration here.

VAT and RCT are not requirements.

ankles

Ask if they have a tax compliance certificate. Easy to get from Revenue, as long as your tax compliant

Calahonda52

ankles wrote: »

Ask if they have a tax compliance certificate. Easy to get from Revenue, as long as your tax compliant

Indeed!
the HRI subsystem requires VAT and RCT registration, else the HRI option is not offered to the contractor, who does not need to be registered for ROS, it helps but not compulsory.

Interesting since the threshold is 37,500 in any 12 month period
or c 720 euro a week, its not a lot.
http://www.revenue.ie/en/tax/vat/guide/registration.html#section2

I would have though matching the RECI certs to tax returns can't be hard.

Risteard81

Calahonda52 wrote: »

Interesting since the threshold is 37,500 in any 12 month period or c 720 euro a week, its not a lot.

€75,000 surely, given that they will be supplying goods as well as services.

Calahonda52

Risteard81 wrote: »

€75,000 surely, given that they will be supplying goods as well as services.

Don't think so as it says

While the general turnover threshold for the supply of services is €37,500, for persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods (other than of the kind referred to in the above paragraph) then the threshold for Goods applies.

so if you go for the 75k threshold based on this, the business will fail the 2/3 VAT rule:
e.g. if pre-vat is 1000, then material cannot be more than 666

However I don't know!

exaisle

If there's a main contractor on the project, they should subcontract out the electrical work. Then your client can pay a vat-inclusive amount to the main contractor (which would include the electrical work), whom I assume is registered for VAT. The main contractor would be obliged to register the contract with the electrician and to operate RCT rules. It's then none of your client's concern, as long as the electrician is RECI registered and can issue valid certs.

Generally, electrical contractors supply a service, they do not supply goods from a VAT point of view (they do not sell sockets, cable, fuseboxes etc). The supply of goods for VAT purposes does not include "supply and fit" where the cost of the materials is LESS than 2/3rds, and it would be in the course of the work of an electrical contractor. So, the lower VAT threshold applies as does the 13.5% rate of VAT.