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RCT calculator

Enter your labour and materials and the RCT rate on the principal’s deduction authorisation. You get the RCT and the amount you’ll receive.

RCT rate (on the principal's deduction authorisation)

What you’ll be paid

€9,600.00

Contract payment (labour and materials)
€12,000.00
VAT accounted for by the principal contractor
Not charged
Invoice total
€12,000.00
Less RCT at 20%
−€2,400.00
Amount payable after RCT
€9,600.00
Make this RCT invoice

How RCT works

  • The principal contractor deducts RCT from each payment to a subcontractor in construction, forestry or meat processing.
  • The rate is on the deduction authorisation Revenue gives the principal: 0%, 20% or 35%.
  • Unlike UK CIS, RCT is deducted from the whole payment before VAT, materials included.
  • The RCT counts as tax you’ve paid: Revenue credits it against your tax, or refunds it.

VAT on construction services

When a VAT-registered subcontractor supplies construction services to a principal contractor, the principal accounts for the VAT under the reverse charge. Your invoice shows no VAT rate or amount, and says “VAT on this supply to be accounted for by the principal contractor”.

Last updated . This calculator is a guide, not tax advice.

Frequently asked questions

Is RCT deducted from materials?

Yes. RCT applies to the whole payment for the contract, labour and materials, before VAT.

Why would my rate be 35%?

Revenue sets 35% when a subcontractor isn’t registered with it or has a poor compliance record. Registered subcontractors are on 20%, or 0% when tax compliant.

Does RCT change my invoice total?

No. Your invoice is for the full amount; it can show the RCT the principal will deduct and the amount payable after it.