How to use the VAT domestic reverse charge if you buy building and construction services
Find out if you need to account for the reverse charge if you receive building and construction services and how to do this.
You must use the reverse charge if you’re VAT registered in the UK, buy building and construction industry services and:
- payment for the supply is reported within the Construction Industry Scheme (CIS)
- the supply is standard or reduced rated — you can find out more in Buildings and construction (VAT Notice 708)
- are not hiring either staff or workers, or both
- you’re not using the end user or intermediary exclusions
Find out if you need to use the reverse charge
-
Check if your supplier has a valid VAT number.
-
Check the list of services that must use the reverse charge.
-
Check if you’re an end user or intermediary supplier, if you are you can choose to notify this to your supplier in writing, in which case the reverse charge will not apply — read about ‘end users’ in the VAT reverse charge technical guide.
How to use the reverse charge
You’ll need to
-
Confirm your accounting systems and software can account for the reverse charge.
-
Make sure the invoice you receive is correct.
-
Record the reverse charge on your VAT return and reclaim it in the usual way.
You can find out more information on invoices and other VAT documents and how to complete your VAT return in the VAT reverse charge technical guide.