The VAT domestic reverse charge shifts responsibility for accounting for VAT from the supplier to the customer for certain specified supplies, most notably in the construction industry.
CIS reverse charge for construction
Under the CIS reverse charge, VAT-registered subcontractors no longer add VAT to invoices for most construction services supplied to another VAT-registered contractor. Instead the contractor accounts for both the output and input VAT on their own return.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.