Free VAT Domestic Reverse Charge for Construction Generator
Guide and invoice template for UK VAT-registered subcontractors subject to VAT Domestic Reverse Charge (DRC) for construction services.
Create Your DRC Invoice
Invoice Details
Logo
Your Business
Client / Bill To
Tax
Line Items
Discount
Notes
Payment Details
Data
Your data stays in your browser. Export to back up your business details, clients, and preferences.
Statutory Requirements for a VAT Domestic Reverse Charge for Construction
Under HM Revenue & Customs regulations, invoices must follow strict documentary standards to be considered valid for tax deductions and VAT reclaim.
Mandatory Invoice Checklist (HMRC Standards)
Subcontractor's UK VAT number.
Contractor's UK VAT number must be confirmed and displayed.
Mandatory wording explaining that the reverse charge applies and the customer must pay VAT to HMRC.
The rate of VAT that applies, with the amount of VAT clearly stated, but NOT added to the invoice total.
VAT Domestic Reverse Charge Invoice Example
Subcontractor supplying CIS construction services where the recipient contractor accounts for the VAT.
| Description | Qty | Unit Rate | VAT | Line Total |
|---|---|---|---|---|
| Commercial Electrical First Fix | 1 | £4,000.00 | 20% DRC (Not charged) | £4,000.00 |
Special UK Regulatory Provisions
Mandatory Reverse Charge Wording
The invoice must state clearly: 'Reverse charge: Customer to pay the VAT to HMRC' or 'Reverse charge: VAT Act 1994 Section 55A applies'.
VAT Excluded from Total
The supplier does not charge or receive the VAT. The customer accounts for both input and output tax on their own VAT return.
Frequently Asked Questions
What wording is mandatory on a Domestic Reverse Charge invoice?
HMRC requires the invoice to state clearly: "Reverse charge: Customer to pay the VAT to HMRC" or "Reverse charge: VAT Act 1994 Section 55A applies".
Do I add VAT to the grand total of a reverse charge invoice?
No. You must state the rate of VAT and the amount of VAT that applies so the contractor knows what to account for on their VAT return, but you do NOT add that VAT to the invoice total payable.
Other UK Invoice Formats & Tax Schemes
Important Compliance Disclaimer:
Invoice Meadow is an independent software tool and is not affiliated with, endorsed by, or operating on behalf of HM Revenue & Customs (HMRC) or the UK Government. Tax rates, VAT rules, and statutory guidelines are provided for general informational purposes only and do not constitute formal legal, accounting, or tax advice. Always consult a qualified accountant or tax advisor regarding your specific business obligations.