Reverse-charge invoicing — when it applies
Two situations trigger reverse-charge VAT invoicing for UK VAT-registered suppliers:
- Domestic reverse charge — CIS construction services. Since 1 March 2021, most construction services supplied between two VAT-registered CIS-registered businesses in the UK are subject to the domestic reverse charge. You don't charge VAT on the invoice; the customer accounts for it on their VAT return.
- Reverse charge on services to overseas business customers. Under the place-of-supply rules, most services supplied B2B to non-UK customers are outside the scope of UK VAT — the customer accounts for VAT in their own country under equivalent reverse-charge rules.
In both cases, your invoice must show zero VAT, include a specific reverse-charge statement, and (where relevant) both parties' VAT registration numbers.
What HMRC requires on a reverse-charge invoice
Beyond the standard invoice requirements (name, address, invoice number, date, description, amount, payment terms), a reverse-charge invoice needs:
- Your VAT registration number
- The customer's VAT registration number (essential for both CIS and overseas B2B)
- A clear statement that reverse charge applies
- The rate that would have applied (usually 20%) and the VAT amount the customer must self-account for — HMRC's guidance requires the customer be able to see the VAT figure
- Zero VAT charged on the invoice line itself
The generator above produces both variants with wording that meets the requirements. Always cross-check against your accountant / VAT Notice 735 (CIS) or VAT Notice 741A (place of supply) before sending high-value invoices.
Related
- VAT Invoice Template — for standard 20% VAT invoices (not reverse charge)
- VAT reverse charge explained — the mechanics + which trades are affected
- VAT on international services — place-of-supply rules
- UK VAT Return Calculator
- MTD for Income Tax Checker — the sister regime for sole traders