About reverse charge VAT

Solution Properties

Solution ID:

222001000101373

Last Modified Date:

Mon Jun 22 08:46:22 UTC 2026

Taxonomy Path:

Case category//How do I...//governmental/legislative compliance

Author:

[email protected]

About reverse charge VAT

Description

What is reverse charge VAT?

With reverse charge VAT, the customer accounts for the VAT instead of the supplier. The supplier records the sale without charging VAT, and the customer declares the VAT on the VAT Return.

The invoice must show the VAT value and confirm that reverse charge rules apply.

For more information, read HMRC's guidance on gov.uk.

When to use reverse charge VAT

Use reverse charge VAT in these situations:

Buy services from a business based outside the UK, such as Google or Facebook
See Purchase services from an overseas business with reverse charge VAT (UK)
Buy goods from outside the UK. This is postponed accounting
See Postponed accounting for Great Britain businesses
Buy and sell some specified goods and services, mobile phones, and computer chips. This is Domestic Reverse Charge VAT
See VAT domestic reverse charge VAT for mobile phones and computer chips
Buy and sell services reported under the Construction Industry Scheme (CIS). Under the CIS scheme, contractors buying from subcontractors must account for VAT
See Reverse charge VAT and CIS