25/06/2026
A lot of contractors think VAT is simple until the Domestic Reverse Charge gets involved.
We see this catch businesses out more often than it should.
You do the work.
You raise the invoice.
You assume VAT gets added.
But in construction, that is not always the case.
For some supplies between VAT-registered construction businesses, the customer accounts for the VAT instead of the supplier charging it in the normal way.
That is where confusion starts.
Because if you do not check the position properly, it can affect:
➡️ your invoice
➡️ your VAT return
➡️ your bookkeeping
➡️ and your cash flow
Construction VAT is one of those areas where assumptions can become expensive.
Worth checking before the invoice goes out.
Sound like something you need help with?
Get in touch: 01344 508020
Ordinem Finance - Bringing order to your finances