Reverse Charge Vat - Principal Contractor

Hi,

Just have a quick question:

Im preparing a Vat return for a principal contractor and he has an invoice in from a sub contractor. I have checked the revenue website and it says to add vat onto the amount of the invoice from the subcontractor and then to include it as vat on sales, then offset it again as vat on purchases. My question is that if the Principal contractor accounts for his vat on his sales per lodgements to the bank do I still include the Vat on the subcontractors invoice in the vat on sales & vat on purchases or do I leave it out of the vat on sales seen as they are accounted for per his lodgements.

sorry for the long winded post but Im just finding it a little confusing..

all help would be greatly appreciated.

Whatever the normal T1 amount is for VAT on sales (however it is calculated) must be increased by the VAT on the sub-c. Same with the purchases T2 amount. The Net position is ultimately as it would have been had you not included the rev-charge VAT except both sets of figures are higher.

Graham_07 said:

Whatever the normal T1 amount is for VAT on sales (however it is calculated) must be increased by the VAT on the sub-c. Same with the purchases T2 amount. The Net position is ultimately as it would have been had you not included the rev-charge VAT except both sets of figures are higher.

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Thanks very much for your reply. Yeah I kinda thought thats what I do but I just wanted to be 100% sure before I sent it in.

Thanks again