Value Added Tax Consolidation Act 2010 section 16

Reverse charge for certain supplies

Section 16 sets out circumstances in which the VAT reverse charge rule applies, shifting the obligation to account for VAT from the supplier to the recipient of the supply.

• The reverse charge applies to transfers of property to NAMA under vesting orders, greenhouse gas emission allowances traded between taxable persons, construction services supplied by subcontractors to principal contractors, and supplies of scrap metal between taxable persons.
• It also applies where an accountable person supplies construction services to a connected person, where natural gas or electricity is supplied to a taxable dealer, and where gas or electricity certificates are supplied between taxable persons.
• In each case, the recipient becomes the accountable person liable to pay the VAT, and the supplier has no VAT liability on the supply.
• The reverse charge for construction services supplied by subcontractors to principals is linked to the Relevant Contracts Tax (RCT) rules in the Taxes Consolidation Act 1997 and applies only to construction operations, not to meat or wood processing.