VAT Invoice Example for Construction
Getting VAT right on your invoices keeps HMRC happy and your clients able to reclaim. Construction invoices between VAT-registered businesses usually fall under the domestic reverse charge, which changes how VAT is shown. This construction VAT invoice example shows the fields you need and how the numbers work, then lets you create a compliant invoice in seconds. Domestic reverse charge applies: you do not add VAT. The customer accounts for VAT to HMRC. Show the net amount and a reverse-charge note.
Create Your Invoice NowWhat to Include on a Construction VAT Invoice
- Your business name, address and VAT number
- The customer's name, address and VAT number
- A statement that the domestic reverse charge applies
- The rate of VAT the customer must account for (usually 20 percent)
- Net value of construction services (no VAT added by you)
- CIS labour and materials shown separately
Sample Construction VAT Invoice
Domestic reverse charge applies: you do not add VAT. The customer accounts for VAT to HMRC. Show the net amount and a reverse-charge note.
Invoicing Tips
- 1Include the exact wording: 'Reverse charge: customer to account for VAT to HMRC'.
- 2Only apply the reverse charge between VAT-registered businesses within CIS.
- 3Keep CIS labour and materials on separate lines.
Frequently Asked Questions
How does VAT work on a construction invoice?
For most B2B construction work covered by CIS, the domestic reverse charge applies. You do not charge VAT. Instead you show the net amount, state that the reverse charge applies, and the customer accounts for the VAT to HMRC.
When does the reverse charge not apply?
It does not apply when the customer is the end user (not making an onward supply of construction), or when either party is not VAT-registered. In those cases you charge VAT as normal at 20 percent.
Ready to Create Your Invoice?
Generate a professional invoice in under 60 seconds. No signup required.
Create Free Invoice