Home › Free tools › VAT reverse charge checker for construction

VAT reverse charge checker for construction

Answer six questions to see whether the VAT domestic reverse charge applies to your construction invoice, and what to put on it. Based on HMRC's guidance; runs in your browser.

When the reverse charge applies

Since 1 March 2021, the VAT domestic reverse charge has applied to most building and construction services at the standard or reduced rate, between UK VAT-registered businesses, where the payment is reported within the Construction Industry Scheme. The services covered are the same as CIS "construction operations", including building, repairs, decorating, and installing heating, lighting, power, drainage, sanitation, water or fire protection systems, plus site preparation and scaffolding (HMRC, checked 15 October 2026).

It doesn't apply to these when supplied on their own: the professional work of architects and surveyors, manufacturing or delivering materials to site, security systems, blinds, shutters, seating, signs and art works (HMRC). It also doesn't apply to customers who give written notice that they're end users (they don't sell the construction work on) or intermediary suppliers linked to an end user (HMRC technical guide).

What changes on the invoice

The customer pays the VAT to HMRC instead of paying it to you. Your invoice shows the VAT rate and amount but doesn't add it to the total, and states that the reverse charge applies; HMRC's example wording is "Customer to pay the VAT to HMRC" (HMRC). If you usually pay more VAT than you reclaim, this changes your cash flow, so plan for it.

Make the invoice with the invoice template, which has a reverse charge option, work out deductions with the CIS calculator, and price the job with the quote and VAT calculator. Background: CIS explained for subcontractors and should I register for VAT?

Based on HMRC guidance, checked 15 October 2026. A guide, not tax advice.

Questions

Does the reverse charge apply to work for homeowners?

No. The customer has to be VAT registered and a CIS contractor, so homeowners always get a normal VAT invoice.

What do I write on a reverse charge invoice?

Show the VAT rate and amount, don't add it to the total, and state that the reverse charge applies. HMRC's example: "Customer to pay the VAT to HMRC".

Does it apply to zero-rated new builds?

No. The reverse charge is for standard and reduced rate services only.

What is an end user?

A VAT and CIS registered business that receives construction services but doesn't sell them on, such as a developer or a business having its own premises built. If they tell you in writing, charge normal VAT.