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Domestic Reverse Charge
Domestic Reverse Charge

How to add the Domestic Reverse Charges for UK construction businesses

Written by Tim Rattley
Updated over a week ago

What is the Domestic Reverse Charge

The VAT domestic reverse charge for building and construction services, is a change in how VAT is handled for certain kinds of construction services in the UK, along with the building and construction materials used directly in those services (although it doesn’t apply to building and construction materials supplied separately and independently of any construction services).

How to add Reverse charge items

You can now add a Domestic Reverse Charge to the items you add to your jobs, quotes or stand alone invoices.

To add a Domestic Reverse Charge you need to go to Settings -> Tax Rates -> and then click the Add New button.

Then in the 'Add Tax' pop-up you can add the name and the percentage of the reverse charge (1), add a description if needed (2), select the 'Is Reverse Charge' option (3) and Save (4).

NOTE: The 'Is Reverse Charge' option is mandatory for the system to not consider the Domestic Reverse Charge as a normal tax rate.

Adding Domestic Reverse Charge to cost items

When adding items to a job, quote or standalone invoice you can simply select the Domestic Reverse Charge option from the Tax Rates drop-down.

The Domestic Reverse Charge will then be displayed on the Job Sheet, Job Report, Quote or Invoice PDFs that you send to the customer.

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