VAT Reverse Charge

From 1 March 2021 the domestic VAT reverse charge must be used for most supplies of building and construction services. The charge applies to standard and reduced-rate VAT services:

  • for individuals or businesses who are registered for VAT in the UK
  • reported within the Construction Industry Scheme

SliQ Invoicing allows you to raise invoices with line items subject to the VAT Reverse charge.

The sections below describe how to ensure VAT Reverse Charge support is enabled in SliQ.

For more information from HMRC on on the VAT Reverse charge, see VAT Reverse Charge

If you use VAT Reverse Charges on your invoices, do not open your company file in an earlier version of V6 SliQ Invoicing as the earlier version will not be able to work with reverse charge line items and will add VAT amounts rather than ignore them.

If you are using more than one copy of SliQ Invoicing, make sure all copies are the latest version.

Enabling VAT Reverse Charge Support

Make sure the GB country code is selected on the Setup/ Business Details tab and that you have entered your VAT number.

On the Setup/ VAT Rates tab, make sure Reverse Charge VAT codes are visible by pressing the Default Rates button.

On the Setup/ Templates tab, select the classic1 - reverse charge template.

Note: If you have edited your own invoice template and don't want to use the new reverse charge template, all you need do is edit your invoice template and make sure the VAT column as well as the VAT% columns are showing in the table of line items. See Configuring Columns for help pm showing columns on templates. You should also add the words Customer to account to HMRC for the reverse charge output tax on the VAT exclusive price of items marked ‘reverse charge applies’ at the relevant VAT rate as shown above to your template. See the classic1 - reverse charge template in SliQ for an example.

When you edit an invoice you can then select a Reverse Charge VAT amount. VAT will then not be added for the line item and when printed or output as a PDF, the invoice will show the word "Reverse Charge Applies".

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