VATREVCON37200 - How the construction reverse charge works: Invoices: Self-billing

Under a VAT self-billing arrangement the customer issues the invoice on behalf of the supplier for the supplies they have bought and received from the supplier. The reverse charge does not affect the self-billing procedure itself. In this situation, it is the responsibility of the business issuing the self-billed invoice to apply the revised accounting procedure.

If the reverse charge applies then the customer will be the person issuing the invoice and accounting for the VAT on the supply. The invoice should not charge VAT and should indicate that the customer will be accounting for the VAT.

Suggested forms of wording that can be included on a VAT self-billing invoice are:

  • reverse charge: We’ll account for and pay output tax of £[enter the amount] to HMRC
  • reverse charge: As the UK customer we’ll pay output tax of £[enter the amount] to HMRC

Alternatively, any of the following are also acceptable, as long as the amount of VAT is shown elsewhere on the invoice (but not in the box for total output tax charged):

  • reverse charge: VAT Act 1994 Section 55A applies
  • reverse charge: S55A VATA 94 applies
  • reverse charge: We’ll account for the VAT to HMRC
  • reverse charge: We’ll pay the VAT to HMRC.