Public Body VAT registration as a principal contractor

Mar 29, 2021

The Tax and Duty Manual on The VAT Treatment of the procurement of certain Goods and Services by a Public Body has been updated for implications arising from the requirement to apply the reverse charge mechanism to received construction services.

Paragraph 2 of the Tax and Duty Manual details that where a public body registers for VAT, solely because it is required to account for VAT as a principal contractor of reverse charge construction services supplied by a sub-contractor, that public body will not be considered to be a VAT registered person for any other purpose.

See eBrief No. 066/21 for further details.