Construction Industry VAT Calculator

Construction Industry VAT Rules

The construction industry has specific VAT rules that differ from standard business sectors, including:

Reverse Charge: For certain construction services between VAT-registered businesses in the Construction Industry Scheme (CIS), the customer accounts for VAT rather than the supplier.
Reduced Rates: Some construction services qualify for reduced VAT rates (e.g., 5% for residential conversions or renovations of properties empty for 2+ years).
Zero Rating: New residential buildings and certain charitable buildings may qualify for zero-rated VAT.
Mixed Supplies: Projects often involve a mix of standard, reduced, and zero-rated elements, requiring proper allocation.

Calculate Construction VAT

Project Type:

Custom VAT Rate (%):

Please enter a valid VAT rate

Project Amount (excluding VAT):

Please enter a valid amount

Client Status:

Client is VAT registered Client is in Construction Industry Scheme (CIS)

Results

Project Cost (ex-VAT): €0.00

VAT Rate Applied: 20%

VAT Amount: €0.00

Total Project Cost (inc-VAT): €0.00

Reverse Charge VAT Calculator

The Domestic Reverse Charge applies when both parties are VAT registered and the customer is CIS registered. The supplier doesn't charge VAT; instead, the customer accounts for it on their VAT return.

Construction Service Type:

Invoice Amount (excluding VAT):

Please enter a valid amount

VAT Rate (%):

Eligibility Check:

Supplier is VAT registered Customer is VAT registered Customer is CIS registered Customer is an end user or intermediary supplier

Reverse Charge Results

Invoice Amount (ex-VAT): €0.00

VAT Rate Applied: 20%

VAT to Account For: €0.00

Important: Under the Domestic Reverse Charge, the supplier should include on their invoice: "Reverse charge: Customer to account for VAT to HMRC"

VAT Return Entries (Customer)

Box 1 (VAT on sales): €0.00

Box 4 (VAT on purchases): €0.00

Box 7 (Total sales ex. VAT): €0.00

Box 6 (Total purchases ex. VAT): €0.00

Mixed Rate Project Calculator

Construction projects often involve elements with different VAT rates. This calculator helps you break down your project and calculate the total VAT correctly.

Project Name/Reference:

Description

Amount (€)

VAT Rate

Mixed Rate Project Results

Project Name: -

Total Project Cost (ex-VAT): €0.00

Total VAT Amount: €0.00

Total Project Cost (inc-VAT): €0.00

VAT Breakdown by Rate

Standard Rate (20%): €0.00

Reduced Rate (5%): €0.00

Zero Rate (0%): €0.00

Construction VAT Guidelines

Common VAT Rates in Construction

Standard Rate (20%): Applies to most construction work including:
- Commercial buildings
- Repairs and maintenance
- Extensions to existing buildings
- Professional fees (architects, surveyors)
Reduced Rate (5%): Applies to:
- Conversion of non-residential buildings into residential
- Renovation of residential properties empty for 2+ years
- Installation of energy-saving materials in residential buildings
- Mobility aids for elderly persons
Zero Rate (0%): Applies to:
- Construction of new residential buildings
- Construction of certain buildings for charities
- Buildings for people with disabilities

Domestic Reverse Charge

The Domestic Reverse Charge for construction services has been in effect since March 2021. It applies when all the following conditions are met:

Both supplier and customer are VAT registered
The customer is CIS registered
The customer is not an end user or intermediary supplier
The supply is a specified construction service under CIS

Record Keeping

For construction projects, especially those with mixed VAT rates, you should keep:

Detailed breakdowns of costs allocated to different rates
Evidence to support zero or reduced-rate treatment
Planning documents and certifications
Correspondence with HMRC if specific rulings were obtained

Special Considerations

DIY Builders: Individuals building their own homes may reclaim VAT on certain building materials through the DIY Housebuilders Scheme.
Listed Buildings: Prior to 2012, approved alterations to listed buildings were zero-rated. Now they are standard-rated (20%).
Self-Billing: If using self-billing arrangements, ensure VAT reverse charge is properly applied when applicable.

Disclaimer: VAT rules in construction are complex and subject to change. This calculator provides guidance only and is not a substitute for professional advice. Always consult with a qualified accountant or tax advisor for your specific situation.