CIS reverse charge VAT, end user

Hello, Constractor who is the end user of the services was charged reverse charge vat instead of the normal rules vat. In this case the contracror needs to show the vat as output vat, but my question is - can the constractor also claim it back as input vat? If they claim it as input tax and they are the end user who actualy pay the vat to HMRC?

In the reverse charge procedure the customer accounts to HMRC for their suppliers output tax and recover it as their own input tax (subject to the normal rules for recovery of input tax). Therefore the net effect may be nil. The Reverse Charge Tech Manual says this: "Example A landlord buys construction services and supplies the services to the tenant (the end user). The tenant may choose not to notify its end user status in writing and just account for VAT using the reverse charge... Choosing to be an end user Being 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. Only once the notification is made can the supplier stop applying the reverse charge and charge VAT under normal rules. It is optional so there is no legal obligation to be treated as an end user." The tenant chooses not to be treated as an end user and so applies the reverse charge. The contractor in your scenario can do the same.

Hi RV2024,

If the end user did not supply written notification of end user status then the reverse charge procedure would be applied by the supplier where appropriate. The contractor receiving the supply would then apply the reverse charge rules to account for the VAT due on their VAT return. You can see guidance here:

How to use the VAT domestic reverse charge if you buy building and construction services

Any input tax claim is subject to the normal input tax rules in notice 700 sections 10 to 13:

VAT guide (VAT Notice 700)

If written notification of end user status was made please refer back to the supplier to amend their invoice.

Thank you.