What are end users and intermediaries? An end user receives the construction services for its own use and doesn't make an onward supply of these services. An intermediary is a connected business in that supply chain that can also fall within the exclusion. End users and intermediaries can tell suppliers not to apply VAT reverse charge. They must do this in writing. ▼ Practical example of an end user A plumber does two jobs for a VAT-registered business (contractor): - Work on a shop premises for £500- this comes under reverse charge VAT
- Work on the contractors head office for £10,000- VAT reverse charge doesn't apply
VAT reverse charge doesn't apply on the work for the contractors head office, because the contractor is the end user. It doesn't make onward supplies of the building and construction services it receives.
What to do if you're an end user or intermediary If you're an end user or intermediary, VAT reverse charge doesn't apply to invoices from your sub-contractors. Check gov.uk to see if you’re an end user or intermediary. When you’re an end user or intermediary: - Send a letter to your sub-contractors advising them not to apply VAT reverse charge
- Clear the VAT reverse charge box on your sub-contractor contact records
Read edit and manage suppliers for more detail.
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