From 1 March 2021 the domestic VAT reverse charge must be used for most supplies of building and construction services.

The charge applies to standard and reduced-rate VAT services:

• for individuals or businesses who are registered for VAT in the UK
• reported within the Construction Industry Scheme

Details rules are on the link below and we have also provided links to some useful flowcharts.

Full details are at;

https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services

Flowcharts

If you sell building and construction services

Use this flowchart to help you decide if you need to use the reverse charge. The reverse charge will need to be used when:

• your customer is registered for VAT in the UK
• payment for the supply is reported within the Construction Industry Scheme (CIS)
• the services you supply are standard or reduced rated
• you’re not an employment business supplying either staff or workers, or both
• your customer has not given written confirmation that they’re an end user or intermediary supplier

Suppliers flowchart (PDF, 149KB, 1 page)

If you buy building and construction services

Use this flowchart to help you decide if you need to use the reverse charge. The reverse charge will need to be used when:

• payment for the supply is reported within the Construction Industry Scheme (CIS)
• the supply is standard or reduced rated
• are not hiring either staff or workers, or both
• you’re not using the end user or intermediary exclusions

Buyers flowchart (PDF, 139KB, 2 pages)