As of 1st March 2021, Domestic Reverse Charge applies to certain customers within the Construction Industry, as specified by HMRC.
I will create a DRC version of your invoice template for you, which will make it clear that the domestic reverse charge applies and that the customer is required to account for the VAT. The invoice will also clearly state the rate of VAT that your customer needs to account for.
You must use the reverse charge from 1 March 2021, if you’re VAT registered in the UK, supply building and construction industry services and:
- your customer is registered for VAT in the UK
- payment for the supply is reported within the Construction Industry Scheme (CIS)
- the services you supply are standard or reduced rated
- you’re not an employment business supplying either staff or workers, or both
- your customer has not given written confirmation that they are an end user or intermediary supplier