Step 1

Does the reverse charge apply?

Question 1 of 5

Is the supply a construction service covered by CIS?

This includes most building, repair, maintenance, demolition, and installation work. It does not cover architecture, surveying, or materials-only supplies.

Reverse charge APPLIES

All five conditions are met. You must not charge VAT on your invoice. Your customer accounts for the VAT directly to HMRC.

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Standard VAT applies

The reverse charge does not apply in this case. You should charge VAT on your invoice as normal.

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Step 2

Calculate your invoice amounts

Quick guide

Understanding the domestic reverse charge

What is the domestic reverse charge?

The domestic reverse charge for construction (often called CIS reverse charge) shifts the responsibility for reporting VAT from the supplier to the customer. Instead of the subcontractor charging VAT on the invoice, the contractor receiving the service accounts for the VAT directly to HMRC on their VAT return. It was introduced to combat VAT fraud in the construction supply chain.

When does it apply?

All five of the following conditions must be met:

The supply is a construction service within the scope of CIS
The supplier is VAT-registered
The customer is VAT-registered
Both supplier and customer are registered for CIS
The customer is not the end user of the construction work

What should the invoice say?

A reverse charge invoice must include a specific statement. The most common wording is:

"Reverse charge: customer to account for VAT to HMRC"

The invoice should show the net amount but not add a VAT amount. You should also show the applicable VAT rate (e.g. 20%) for reference.

Common mistakes

Charging VAT when the reverse charge applies (customer should not pay VAT to you)
Forgetting the mandatory reverse charge wording on the invoice
Applying the reverse charge to an end user (e.g. a homeowner) who is not in the construction supply chain
Not verifying whether your customer is VAT-registered and CIS-registered before issuing the invoice
Including VAT in your invoice total, which overstates the amount owed

This tool is for information only. It does not constitute tax advice. Always verify with your accountant or HMRC before making decisions about VAT treatment.

Automate it

Reverse charge invoicing,
handled by WOPA.

WOPA handles reverse charge VAT invoicing automatically from WhatsApp. Just tell WOPA it's a reverse charge job and the invoice goes out with the correct wording, no VAT charged, no fuss.

Reserve founder pricing

Reverse Charge VAT Calculator

Does the reverse charge apply?

Reverse charge APPLIES

Standard VAT applies

Calculate your invoice amounts

Reverse charge invoice

Standard VAT invoice

Understanding the domestic reverse charge

What is the domestic reverse charge?

When does it apply?

What should the invoice say?

Common mistakes

Reverse charge invoicing,
handled by WOPA.

Reverse Charge VAT Calculator

Does the reverse charge apply?

Reverse charge APPLIES

Standard VAT applies

Calculate your invoice amounts

Reverse charge invoice

Standard VAT invoice

Understanding the domestic reverse charge

What is the domestic reverse charge?

When does it apply?

What should the invoice say?

Common mistakes

Reverse charge invoicing,handled by WOPA.

Reverse charge invoicing,
handled by WOPA.