A school must maintain a VAT & RCT file. Below is a list of supporting documents that must be kept on each file.
VAT File
An annual VAT file must be setup at the start of each school year. For each return period for example bi-monthly returns the following should be on the file;
- Copy of the VAT 3 filed
- Copy of the subcontractors invoices
RCT File
An annual RCT file must be setup at the start of each school year. For each return period for example monthly returns the following should be on the file;
- Copy of the subcontractors contract notification
- Copy of the subcontractor payment notification
- Copy of the monthly return
Schools are required to account for the VAT and RCT in the accounts. Where there has been a payment of VAT & RCT to the Revenue Commissioners you should record this expenditure under the same category that was used to record the payment to the sub-contractor.