How to use the VAT domestic reverse charge if you supply building and construction services
Find out if you need to account for the reverse charge for buildings and construction services you supply.
You must use the reverse charge if you’re VAT registered in the UK, supply building and construction industry services and:
- your customer is registered for VAT in the UK
- payment for the supply is reported within the Construction Industry Scheme (CIS)
- the services you supply are standard or reduced rated — you can find out more in Buildings and construction (VAT Notice 708)
- you’re not an employment business supplying either staff or workers, or both — you can find out more in the VAT reverse charge technical guide
- your customer has not given written confirmation that they are an end user or intermediary supplier — find out more in the VAT reverse charge technical guide
What you’ll need to do
Check if your customer:
Unless your customer writes telling you that they’re an end user or intermediary supplier, you’ll also need to find out how to account for the reverse charge.
How to check your customer’s Construction Industry Scheme registration
Use the Construction Industry Scheme online service to check your customer’s registration.
Customers who are contractors for Construction Industry Scheme purposes may not show up on such checks. If so, unless they tell you they are end users or intermediary suppliers, ask them to confirm that they are reporting under Construction Industry Scheme before applying the reverse charge.
You’ll need the following customer details to complete the check.
Sole trader:
- name
- unique taxpayer reference
- National Insurance number
Partner in a firm:
- firm’s name
- partner’s name
- firm’s unique taxpayer reference
- partner’s unique taxpayer reference, or National Insurance number — if the partner is an individual
- company’s unique taxpayer reference or registration number — if the partner is a company
Company:
- name of company
- company’s unique taxpayer reference
- company registration number
How to record the reverse charge
Once you have confirmed your accounting systems and software can record the reverse charge, you can use the VAT reverse charge technical guide to:
-
Make sure your invoices show the reverse charge applies — read ‘Invoices and other VAT documents.’
-
Decide if you want to move to monthly returns — read ‘Impact on cash flow and monthly returns.’
More information
You can find more about what you need to include on your invoice and other documents and when the reverse change applies to you using the flowcharts in the VAT reverse charge technical guide.