Statutory Legal Regulations

All invoices are paid in accordance with the Statutory Legal Regulations governing Public Bodies, as prescribed by the Revenue Commissioners.

VAT Codes for Purchase Orders and Invoices

  • Application of the correct tax code to relevant documents is essential. The tax code should be provided by the purchaser, not added by accounts office personnel.
  • When keying in requisitions, the amount entered is the VAT EXCLUSIVE value. By entering the below codes, the system calculates the VAT as appropriate*.

* The standard VAT rate is being reduced from 23% to 21% effective 1/09/2020 for a period of six months.

  Regular Departmental Expenditure
- Non-Reclaimable VAT
Certain Vatable Research Contracts
- Reclaimable VAT
Purchases of Goods or Services from suppliers based in Éire (26 counties) P1 VAT added on @ 13.5% P3 VAT added on @ 13.5%
P2 VAT added on @ 21%*  P4 VAT added on @ 21%*
P5 VAT added on @ 9% P6 VAT added on @ 9%
P0 VAT not applicable - 0% P0 VAT not applicable - 0%
If the supplier is registered for VAT in Éire, they will add it to their invoice.
Purchase of GOODS from EU outside of Éire (26 counties)1 U1 VAT added on @ 13.5% U3 VAT added on @ 13.5%
U2 VAT added on @ 21%* U4 VAT added on @ 21%*
U5
VAT added on @ 9%    
The invoice from the supplier should not charge VAT. Note, if there are "add-on" costs to delivering the goods, e.g., courier service, then those costs should be treated as part of the cost of the goods and not as a separate invoice. If VAT is not applicable, please use P0.
Purchase of SERVICES from EU outside of Éire (26 counties)1,2 F1 VAT added on @ 13.5% F3 VAT added on @ 13.5%
F2 VAT added on @ 21%* F4 VAT added on @ 21%*
The invoice from the supplier should not charge VAT. Note, if there are "add-on" costs to providing the service, then those costs should be treated as part of the cost of the service and not as a separate invoice. If VAT is not applicable, please use P0.
Purchase of Goods or Services from outside the EU2,3 I1 VAT added on @ 13.5% I3 VAT added on @ 13.5%
I2 VAT added on @ 21%* I4 VAT added on @ 21%*
The invoice from the supplier should not charge VAT. Note, if there are "add-on" costs to delivering the goods, e.g., courier service, then those costs should be treated as part of the cost of the goods and not as a separate invoice. If VAT is not applicable, please use P0.
Purchase of Construction Services both inside and outside the State. T1 VAT added on @ 13.5% T3 VAT added on @ 13.5%
T2 VAT added on @ 21%* T4 VAT added on @ 21%*
VAT Rules for construction services (Reverse Charge System) apply to Principal Contractors (NUI Galway) and sub-contractors invloved in construction activities to which Revlevant Contract Tax (RCT) applies.

The invoice from the supplier should not charge VAT and must contain the statement "VAT ON THIS SUPPLY TO BE ACCOUNTED FOR BY THE PRINCIPAL CONTRACTOR". 

In order to register a contract with Revenue please complete RCT Form and return with invoice(s) if available to Accounts Payable (for internal use only).

NOTES

  1. The supplier should be provided with NUI Galway's VAT number IE0022578J. This is included on the Purchase Order document.
  2. There are a number of exceptions where VAT is applied in a foreign country for services supplied. The University does not have to pay VAT to Irish Revenue (self-assess) in this case. Some examples include:
    • Conferences in foreign countries
    • Hotel accommodation and food
    • Passenger transport (bus and rail tickets, etc.)
  3.  Where the value of a physical shipment from outside the EU exceeds €260, VAT is levied at customs and paid by the courier on behalf of NUI Galway. In this case, the correct VAT code is P0. The courier will invoice your department separately for the VAT.

Tax Clearance Certification

This is written confirmation from the Revenue that a company’s tax affairs are in order at the date of issue. It is a requirement that a Tax Clearance Certificate is obtained from suppliers with whom more than €10,000 worth of business is placed in any 12-month period. Please inform suppliers at time of ordering of potential Tax clearance requirements.

Payments held awaiting Tax Clearance Certificates will be paid in the next scheduled payment run following receipt of such certificates.

For further information on Tax Clearance Certification, see revenue website: https://www.revenue.ie/en/starting-a-business/tax-clearance/index.aspx

For information on Non-Resident Tax Clearance Certification see: https://www.revenue.ie/en/starting-a-business/tax-clearance/how-to-apply-for-a-tax-clearance-certificate/non-resident-applications.aspx

Professional Services Withholding Tax (PSWT)

Under the Taxes Consolidation Act 1997 Professional Services Withholding Tax (PSWT) must be deducted by the University from payments made to Professional Service Providers. PSWT must be deducted from the entire payment, including any element which is for the reimbursement of expenses incurred. This applies even where expenses are invoiced separately.

Where a non-resident is not chargeable to tax in the State for the year/period in which the PSWT is deducted, repayment of the PSWT may be claimed from Revenue.

The current rate of PSWT is 20%.

Please see the Revenue website for further details on Professional Services Withholding Tax.

Relevant Contracts Tax (RCT)

NUI Galway is obliged to operate a scheme of RCT on payments to sub-contractors in construction and related industries.

In order to register a contract with Revenue, please complete RCT Form and return with invoice(s) if available to Accounts Payable (for internal use only).

Please see the Revenue website for further details on Relevant Contracts Tax (RCT).