Two VAT rates
Irish glazing work usually involves two VAT rates. Supplying and installing fixtures — construction services — is generally at the reduced rate of 13.5%. Supplying building materials on their own (glass collected or delivered, not fitted) is at the standard rate of 23%, as is scaffolding.
The two-thirds rule
On a supply-and-fit job, if the cost of the goods you use (excluding VAT) is more than two-thirds of the total VAT-exclusive price, the goods rate — 23% — applies to the whole job. That can catch a job where the glass is expensive and the fitting is quick. Note it is the cost of the goods to you, not what you charge for them. The rule doesn't apply where the RCT reverse charge applies, or between connected persons.
RCT and the VAT reverse charge
Relevant Contracts Tax applies when a principal contractor pays a subcontractor for construction work. The principal deducts RCT at 0%, 20% or 35%, depending on the subcontractor's record with Revenue, and all of it runs through Revenue Online Service (ROS).
Where RCT applies, the VAT reverse charge applies too: as the subcontractor you invoice without VAT and add the line "VAT on this supply to be accounted for by the principal contractor", and the principal accounts for the VAT. A glazier working for a builder on one job and a homeowner on the next deals with both kinds of invoice.
Eircodes on every job
Every Irish address has a seven-character Eircode: a three-character routing key for the area, and a four-character identifier unique to the address — for example A65 F4E2. On rural jobs, where several houses share a townland name, the Eircode is what gets the fitter to the right door. Take it at the enquiry and keep it with the site address.
Where Coglass fits
What Coglass does today. RCT deductions and returns are done on ROS, not in Coglass:
- Eircodes on addresses. On an Irish account, customer and site addresses have an Eircode field with a format check, and a county picker.
- Deposit, proforma and final invoices from the job, with payments recorded against them and overdue invoices flagged.
- Xero. Invoices, payments and supplier bills push to your Xero organisation, coded to the accounts and tax rates you choose from your own Xero settings — your returns are then done in Xero.
- Surveys on the phone. Each opening is measured, drawn and photographed, with notes, GPS and the access level — and it works with no signal, syncing when you are back in coverage.
Want to see it on your own jobs? Book a demo or see pricing in EUR.
Sources
- Revenue — VAT on construction services (Tax and Duty Manual)
- Revenue — The two-thirds rule
- Revenue — Relevant Contracts Tax
- Revenue — Reverse charge (self-accounting)
- Eircode — What is Eircode?
This page explains the rules in general terms. Standards and tax rules change, and how they apply depends on the job — check the source, your building control body or your accountant before relying on it.