Reverse charge invoices

VAT domestic reverse charge invoices

For CIS construction work between VAT-registered businesses, Sendinvo raises a domestic reverse charge invoice: no VAT charged, the exact HMRC wording on the page, and the rate and VAT amount that would have applied. Your contractor accounts for the VAT to HMRC, so you don’t charge it.

Your first 3 invoices are free to send, no card needed.

How it works

No VAT, the right words, every time

1

Invoice your CIS work

Build the invoice for VAT-registered construction work as you normally would, inside Sendinvo’s CIS flow.

2

The reverse charge applies

When your company is VAT-registered, the domestic reverse charge is added for you, so the invoice carries no VAT.

3

The HMRC wording prints

The invoice shows “Reverse charge: customer to account for VAT to HMRC”, with the rate and the VAT amount that would otherwise have applied.

4

Your contractor accounts for it

They account for the VAT to HMRC at their end. You send the invoice and get paid, without charging the VAT yourself.

The details

The reverse charge, handled for you

The VAT domestic reverse charge shifts who accounts for the VAT to HMRC. On qualifying CIS work between two VAT-registered businesses you charge no VAT: your contractor accounts for it instead. Get the wording wrong and the invoice gets queried, so Sendinvo prints it for you.

No VAT, the exact HMRC wording

A reverse charge invoice charges no VAT. In its place it carries the exact HMRC phrase, “Reverse charge: customer to account for VAT to HMRC”, alongside the rate and the VAT amount that would otherwise have applied. Your contractor has everything they need to account for the VAT at their end.

Part of the CIS flow

The reverse charge isn’t a loose toggle: it’s built into Sendinvo’s CIS invoices, for VAT-registered companies, on sterling invoices. That keeps it tied to the work it applies to, construction services under the Construction Industry Scheme, rather than switched on by mistake elsewhere.

Separate from the CIS deduction

The reverse charge and the CIS labour deduction are two different things on the same invoice. The deduction lowers the amount your contractor pays you; the reverse charge changes who accounts for the VAT. Sendinvo handles both, and where a job mixes rates you can also set VAT per line.

Questions

Good to know

What is the VAT domestic reverse charge?

It’s a rule for certain CIS construction work between VAT-registered businesses. Instead of you charging VAT, your contractor accounts for the VAT to HMRC. The invoice shows no VAT, and Sendinvo adds the reverse charge for you as part of the CIS flow.

What wording goes on a reverse charge invoice?

The exact HMRC phrase, “Reverse charge: customer to account for VAT to HMRC”, with the rate and the VAT amount that would otherwise have applied. Sendinvo prints it for you, so you don’t have to remember the phrasing or risk a queried invoice.

Do I still charge VAT on the invoice?

No. On a domestic reverse charge invoice you charge no VAT. Your contractor accounts for the VAT to HMRC at their end, which is the whole point of the reverse charge.

How is this different from the CIS deduction?

They’re separate. The CIS deduction lowers the amount your contractor pays you; the reverse charge changes who accounts for the VAT. Both can appear on the same invoice, and Sendinvo handles each one for you.

Can I use the reverse charge on any invoice?

No. It’s offered as part of Sendinvo’s CIS flow, for VAT-registered companies, on sterling invoices, because the reverse charge is a UK construction rule. For mixed-rate jobs you can also set VAT per line.

Send a reverse charge invoice that’s right first time.

Start free, invoice your CIS work, and let Sendinvo add the reverse charge and the HMRC wording for you.