Provisions the documents cite: the check page (services in and out of the reverse charge); the technical guide sections "Invoices", "Splitting of invoices for supply and fix orders", "Applying the 5% disregard", "Change of VAT treatment during a contract" and "How to account for the reverse charge"
What it requires
HMRC say the reverse charge must be used for most supplies of building and construction services at standard or reduced rate, between VAT-registered businesses, reported within the Construction Industry Scheme; the services listed match CIS construction operations except supplies of workers by employment businesses. When supplying a service subject to the reverse charge the supplier must show all the information required on a VAT invoice; add a note making clear that the domestic reverse charge applies and the customer must account for the VAT; and state how much VAT is due under the reverse charge or, if that cannot be shown, the rate — without including the VAT in the amount charged. The VAT Regulations 1995 require the reference "reverse charge"; HMRC's examples of wording that meet the requirement are "VAT Act 1994 Section 55A applies", "S55A VATA 94 applies" and "Customer to pay the VAT to HMRC". If software cannot show the amount, the invoice says "customer to account to HMRC" for the reverse charge and identifies the reverse charge items. A single supply and fix order within CIS is reverse charged on its full value even if invoiced separately. The 5% disregard applies only where supplier and customer agree from the start, on overall contract values, and not invoice by invoice. Where the customer's circumstances change, the customer tells the supplier. The reverse charge applies to invoices with a tax point on or after 1 March 2021.
The instrument itself: https://www.gov.uk/guidance/vat-reverse-charge-technical-guide. The summary above is our plain-English reading, not the text of the instrument — always work from the source.
How this entry is kept current
- Citation status: read in full at the primary source.
- Watched by: gov.uk page — check the "Updated" date and change note at each monthly horizon scan.
- Source last checked by the automated scan: not yet — first scan pending.
Every source is re-checked monthly and the result is published in the scan log. A change that alters what a document should say raises a revision, and past buyers of that document are told.
The 2 documents that cite it
Every KubitDocs document prints its statutory basis on the form itself, so the person signing can verify the citation rather than take our word for it.