#Sales invoice example registration#

Choosing to be an end userīeing an end user is optional but in order to be treated as one the customer must tell the supplier or building contractor in writing that they are an end user. The landlord would still be entitled to take advantage of the intermediary supplier exemption by issuing written notification of its status to its supplier, who should then charge VAT to the landlord under normal rules. The tenant may choose not to notify its end user status in writing and just account for VAT using the reverse charge. ExampleĪ landlord buys construction services and supplies the services to the tenant (the end user). The intermediary supplier and the end user do not need to apply the same VAT treatment in relation to the reverse charge. If there is an intermediary supplier and end user in a supply chain Intermediary suppliers can refer to themselves as end users when notifying their suppliers.

#Sales invoice example registration#

Once an intermediary supplier notification has been made it is not necessary for the contractor to ask for any further details like VAT and Construction Industry Scheme registration status. The reverse charge does not apply for supplies to intermediary suppliers where they tell their supplier this in writing. be part of the same corporate group or undertaking - as defined in section 1161 of the Companies Act 2006 on the government legislation website.have a relevant interest in the same land where the construction works happen - such as a landlord and tenant.To be connected or linked to an end user, you must either: If you buy construction services and re-supply them to a connected or linked end user, without making material changes to the supplies, you can be treated as an end user and the reverse charge does not apply. Intermediary suppliers are VAT and Construction Industry Scheme registered businesses that are connected or linked to end users.

For more information on this you can check the section ‘Construction services supplied with goods or other services.’ Intermediary suppliers They do not have to disclose the details of those re-charges to the supplier. But there is a 5% disregard which allows the business customer to still issue an end user declaration to their supplier. Where a business customer receives construction services and is predominantly an end user, but may be re-supplying a very small proportion of the services received (less than 5% by value), this would normally trigger an obligation to apply the reverse charge. Once an end user notification has been made it is not necessary for the contractor to ask for any further details like VAT and Construction Industry Scheme registration status. The reverse charge does not apply for supplies to end users when the end user tells their supplier or building contractor in writing that they’re an end user. Supplies made to them by sub-contractors will therefore still be subject to the reverse charge if the other conditions are met. This does not mean that the contractor supplying the householder becomes the end user because it will still be making onward supplies of construction services. There will not always be an end user (for reverse charge purposes) iscn each construction supply chain.įor example, if services are provided to a private domestic customer, the reverse charge does not apply because the customer will not be VAT registered.

do not make onward supplies of the building and construction services that you receiveīuilding contractors are not usually end users because they make onward supplies of construction services.

are VAT and Construction Industry Scheme registered.

If you’re an end user you’re a business, or group of businesses, that: End users and Intermediary supplier businesses End user If you buy or sell services in the Construction Industry Scheme, you can find more information about it in this guide.

Private finance initiative arrangements.

Local authorities and other public bodies.

Accounting for payments made or received.

Change of VAT treatment during a contract.

Construction services supplied with goods or other services.

Impact on cash flow and monthly returns.

Making errors with the domestic reverse charge.

Employment businesses supplying construction workers.

When to check if your customer is VAT and Construction Industry Scheme registered or an end user.

End users and Intermediary supplier businesses.