RCT

Hi Guys,

Just a question regarding RCT and the meat processing industry.

• Is RCT only applicable where there is a principal contractor and sub-contractor. Is RCT applicable where it involves a company providing labour for meat processing purposes?
• The subcontrator should issue the principal contractor for the total amount, no VAT included and then the principal contractor pays the amount less any RCT rate deduction

The reverse charge basis of VAT does not apply to Forestry and Meat processing.

Joe_90 said:

The reverse charge basis of VAT does not apply to Forestry and Meat processing.

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Thanks for that Joe, I had incorrectly presumed that it was same for the 3 RCT sectors, but indeed, you charge VAT and then calculate the RCT deduction on this gross amount