VAT · Guide · 3 min read

VAT reverse charge checker for construction invoices

Check the main domestic reverse-charge conditions for a straightforward UK construction supply, with an explicit route for uncertain cases.

By Trade PA · Published 27 September 2026 · Reviewed 15 September 2026

Use this checker for a straightforward UK construction invoice. It screens the main conditions; it does not resolve mixed supplies, unusual chains, overseas businesses or a missed VAT registration. If you are unsure, use the relevant HMRC guidance before issuing the invoice.

Keep the evidence with the invoice

The main supplier checks are VAT registration, a relevant CIS construction supply, standard or reduced rating, and whether an end-user or intermediary exclusion applies. Employment businesses supplying workers need separate treatment. A written notification matters; a customer saying “we are the end user” in a phone call is not the complete record. HMRC’s supplier guide is the starting point.

Save the customer’s details, the evidence checked, the scope of this particular job and the notification you relied on. A customer can act differently on different projects. Review a saved customer setting when the supply changes; it is not a permanent decision for every future invoice.

An invoice example

Illustration: a qualifying £1,000 construction supply normally subject to 20% VAT. The supplier’s amount payable before any separate CIS deduction is £1,000, not £1,200. The invoice identifies the reverse charge and the £200 VAT the customer must account for. One possible note is: “Reverse charge: customer to account to HMRC for VAT of £200 at 20%. This VAT is not included in the amount payable.” Check the rest of the invoice requirements too.

CIS and VAT answer different questions

The VAT reverse charge does not settle the CIS deduction. Check the applicable CIS treatment separately, including allowable materials costs and verification. Keep the invoice value, VAT treatment, deduction and payment distinct in your records. Use our CIS calculation guide and monthly return checklist for those steps.

Where this simple checker stops

A mixed contract may not follow a simple “materials” label. Linked supplies, the five-per-cent disregard and overseas-business rules need the technical guidance. Do not split an invoice artificially to obtain a preferred result. If the output says to check, resolve the uncertainty before choosing a tax treatment.

Trade PA can help prepare invoice records, but you must review the customer and tax treatment before sending. This checker does not submit a VAT return. See the full construction reverse-charge guide for context. General information, not tax advice on a particular supply.