How to apply the VAT domestic reverse charge on an invoice

If the domestic reverse charge applies to a job, switch it on and Trame removes VAT from the amount you charge, while still stating what the customer must account for to HMRC. For whether it applies to your job, see the guide on the VAT domestic reverse charge for construction. This article covers the invoice switch itself.

Before you start

The reverse charge toggle only appears if your company has a VAT number saved in company settings. See adding your VAT and CIS settings.

Turn on the reverse charge

1. Open the invoice. It must still be a draft, the toggle locks once issued.
2. In the totals footer, switch on Domestic reverse charge.
3. The VAT row changes to VAT (reverse charge) showing £0.00, and a line underneath states how much VAT the customer accounts for to HMRC.
4. The bottom total label changes from Total inc VAT to Total due.

What your customer sees

Once issued, the invoice states plainly that no VAT is charged and how much the customer accounts for themselves, alongside the statutory reference line Reverse charge: VAT Act 1994 Section 55A applies.

Frequently asked

How do I know if a job needs the reverse charge?

See the guide on the VAT domestic reverse charge for construction for the rules on when it applies.

Does this change what the customer pays?

Yes. It removes VAT from the amount they're charged. They account for that VAT to HMRC directly rather than paying it to you.

Can I turn it off after issuing?

No. Once an invoice is issued, its content, including the reverse charge switch, is locked.