VAT Domestic Reverse Charge Procedure

March 13, 2026 · WOWERI

The VAT domestic reverse charge procedure applies to the buying and selling of certain goods and services. Find out how this may affect your business.

VAT Domestic Reverse Charge Procedure

The VAT domestic reverse charge procedure is a way of accounting for VAT on the purchase and sale of certain goods and services. This procedure is applied in the UK and is regulated by HMRC.

Who is affected by the procedure

The VAT domestic reverse charge procedure applies to the following categories:

• Suppliers and buyers of certain goods and services, such as construction materials, metals, and other goods
• Businesses that carry out construction activities, including contractors and subcontractors

How the procedure works

When buying goods or services that are subject to the VAT domestic reverse charge procedure, the buyer must calculate and pay the VAT themselves. The sale must be indicated on the invoice with the notation 'VAT domestic reverse charge'.

Important dates and deadlines

Check the HMRC website for the latest information on the VAT domestic reverse charge procedure and its application dates.

Source: gov.uk