VAT Rates

minisue

Hi Everyone,

Thought the accountants where the best place to ask this question, oh knowledgeable ones! I have been given two quotes for solar panels from different companies but one has 13.5% and the other 23%

Any idea why this would be?

thanks

Seve OB

minisue wrote: »

Hi Everyone,

Thought the accountants where the best place to ask this question, oh knowledgeable ones! I have been given two quotes for solar panels from different companies but one has 13.5% and the other 23%

Any idea why this would be?

thanks

supply & fit?

https://www.revenue.ie/en/vat/vat-on-services/services-taxable-at-the-rate-of-the-goods-the-two/index.aspx

Seve OB

https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/S/solar-panels-supply-and-install-.aspx

https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/S/solar-panels.aspx

minisue

Yes, it would be. Thanks

So the supply and fit would be 13.% - whats this about 2/3 rule?

Seve OB

minisue wrote: »

Yes, it would be. Thanks

So the supply and fit would be 13.% - whats this about 2/3 rule?

https://www.revenue.ie/en/vat/vat-on-services/services-taxable-at-the-rate-of-the-goods-the-two/index.aspx

basically the value of the goods need to be less that 2/3 of the total cost of the job

do you have breakdown of the quotes?

minisue

No, sorry I don't have a breakdown, but I will ask. But would it be 13.5% regardless of the 2/3 rules as supply and install is 13.5% according to the vat database link you gave me.

Seve OB

no

lets say one company's before VAT quote is 900 for materials & 600 for labour. total is 1,500. materials is less than 2/3 so vat will be charged on total of 1500 @ 13.5% so total after VAT will be €1,702.50

Company b comes along and their quote is the same 1,500 but broken down by 1,100 for materials and 400 for labour. so the exact same quote of 1,500 after VAT of 23% will be €1,845