VAT Reverse Charge Checker for UK Construction (2026)
Should your invoice charge VAT, or does the construction domestic reverse charge apply? Get it wrong and either you or your customer ends up owing HMRC. This free VAT reverse charge checker walks through HMRC’s conditions one question at a time, then tells you how to invoice, with the wording and the figures to use.
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The construction reverse charge applies when you, a VAT-registered business, supply standard or reduced-rated building work within the Construction Industry Scheme to a VAT-registered customer who will supply it on, and who has not told you in writing that they are an end user. When it applies, you do not charge VAT: your invoice says the reverse charge applies and the customer pays the VAT to HMRC instead. Homeowners and other private customers always get a normal VAT invoice.
VAT Reverse Charge Checker
1. Are you registered for VAT?
If you are not VAT registered you never charge VAT, so the reverse charge does not affect your invoices.Based on HMRC’s VAT domestic reverse charge technical guide and reverse charge guidance for building and construction services, checked October 2026. This tool is a guide, not tax advice; if a job is borderline, check with HMRC or your accountant.
When the Reverse Charge Applies
HMRC says the reverse charge applies when all of these are true:
- Your customer is registered for VAT in the UK.
- The services are within the scope of the Construction Industry Scheme.
- The services are standard or reduced rated (not zero-rated).
- You are not an employment business supplying staff or workers.
- Your customer has not given written confirmation that they are an end user or intermediary supplier.
There is also a 5% rule: if the reverse-charge part of a supply is 5% or less of the whole supply value, it can be disregarded and the invoice treated under the normal VAT rules.
What to Put on a Reverse Charge Invoice
A reverse charge invoice still needs everything a normal VAT invoice has, such as your VAT number, the date and a description of the work. On top of that it must:
- Say that the domestic reverse charge applies and that the customer must account for the VAT.
- Show how much VAT is due under the reverse charge, or if that is not possible, the VAT rate.
- Not add the VAT to the amount you are asking to be paid.
HMRC’s example wording includes “Reverse charge: VAT Act 1994 Section 55A applies” and “Customer to pay the VAT to HMRC”. The checker above gives you a ready-to-use line.
Reverse Charge and CIS Together
The reverse charge changes who pays the VAT. It does not change CIS. Your contractor still takes the CIS deduction from your labour as normal, and VAT is never part of the CIS calculation. Our CIS tax calculator works out what you are paid after the deduction.
Common Situations
| You are invoicing | Usually |
|---|---|
| A homeowner for a kitchen, bathroom or extension | Normal VAT (the homeowner is not VAT registered) |
| A VAT and CIS-registered main contractor, as their subcontractor | Reverse charge |
| A developer who has confirmed in writing they are an end user | Normal VAT |
| A main contractor for work on a new-build house | Zero-rated, no reverse charge |
| A business for installing CCTV or a burglar alarm on its own | Normal VAT (outside the reverse charge) |
Frequently Asked Questions
It is an HMRC rule for building and construction services reported under CIS. When it applies, the VAT-registered supplier does not charge VAT; instead the VAT-registered customer accounts for the VAT on its own VAT return, paying and reclaiming it on the same return.
When all of these are true: your customer is VAT registered in the UK, the work is within the Construction Industry Scheme, it is standard or reduced rated, you are not an employment business supplying workers, and your customer has not confirmed in writing that they are an end user or intermediary supplier.
No. Homeowners and other private customers are not VAT registered, so the reverse charge never applies to them. If you are VAT registered, charge VAT as normal.
The invoice must say the domestic reverse charge applies and that the customer must account for the VAT, and show the VAT due or the rate. HMRC’s example wording includes: Reverse charge: VAT Act 1994 Section 55A applies. Customer to pay the VAT to HMRC.
If the reverse-charge part of a supply is 5% or less of the whole supply value, it can be disregarded and the supply treated under the normal VAT rules.
No. The reverse charge changes who pays the VAT, not the CIS deduction. Your contractor still deducts CIS from your labour, and VAT is never included in the CIS calculation.
TradeStack HQ helps UK tradespeople find the best tools to run smarter businesses. This checker follows HMRC guidance checked in October 2026 and is not tax advice. See how we test and check.