Discuss

Construction reverse charge: test every condition before changing the invoice.

A decision framework for CIS services, VAT status, end users, intermediary suppliers and mixed construction supplies.

Discuss your position
01Classify the service
02Confirm VAT and CIS status
03Test end-user exclusions
04Set invoice and return treatment
01

The reverse charge needs all conditions

The domestic reverse charge can apply where specified construction services are reported under CIS, the supply is standard or reduced rated, both parties meet the VAT conditions and the customer is not an end user or qualifying intermediary supplier.

  • Specified construction service
  • CIS reporting
  • VAT registration
  • End-user declaration
02

Mixed supplies need one coherent treatment

Where a supply contains reverse-charge and other construction elements, the rules for mixed and connected supplies need to be considered. Invoice wording, tax points and accounting entries must follow the conclusion.

  • Mixed contracts
  • Materials and labour
  • Tax points
  • Supplier and customer return entries
Primary sources

Tax guidance changes. These official sources were checked on 31 August 2026.

VAT domestic reverse charge for construction

Related VAT services

VAT returns and complianceReturn preparation, review controls, Making Tax Digital records and correction processes for repeatable UK VAT compliance.Property and construction VATLand, buildings, option to tax, development and construction reverse-charge advice at the point it matters.VAT health checkA focused review of transactions, data, controls and evidence, prioritised by impact rather than volume.
Important

This page provides general information, not advice for a particular transaction. VAT treatment depends on the complete facts and current law.