VAT - Two-Thirds Rule for Plumber

jokerini

Registered User
Messages
91
Plumber installs a new boiler costing €800. Labour costs €600. Total charge to customer is €1,400. All amounts exclude VAT. Can the plumber invoice at €1400 plus 13.5% VAT since the labour content is greater than 2/3 of the total value?
 
If the cost of the materials in a job exceeds 2/3 of the VAT excl price to the customer then the standard 21% rate will apply

In your example 13.5% VAT is fine