A construction invoice that is not VAT-compliant is a slow problem. It passes once, twice, maybe for a year, and then a VAT inspection or a contractor's accounts payable team flags it and the payment stalls. The fix is not complicated, but it is precise: the right fields in the right places, and, for most subcontracted work since March 2021, the domestic reverse charge wording that tells the customer they account for the VAT, not you.
This VAT invoice generator for construction builds that invoice for you. Enter your details, add the line items, choose the VAT treatment and the CIS deduction, and the document on the right updates as you type. When you are happy, save it as a PDF.
What a compliant invoice needs
A valid VAT invoice in the UK is not a freeform note. HMRC expects a defined set of fields, and a contractor's accounts team will reject anything missing them:
- A unique, sequential invoice number, so invoices cannot be duplicated or skipped.
- The invoice date.
- Your business name and address, and your VAT registration number if you are registered.
- The customer's name and address.
- A clear description of the work, line by line.
- The net amount for each line, the VAT rate, and the VAT amount.
- The total due.
The generator lays these out in the order an accounts payable team expects to read them, so there is no back-and-forth over a missing reference.
The reverse charge wording
This is where most construction invoices go wrong. Since 1 March 2021, the VAT domestic reverse charge applies to most building and construction services supplied between VAT-registered businesses within the Construction Industry Scheme, where the customer is not the end user. Under the reverse charge you do not charge VAT. The customer accounts for it to HMRC on their own return.
But you cannot simply omit VAT and stay silent. HMRC requires the reverse charge invoice template to:
- State clearly that the domestic reverse charge applies and that the customer is required to account for the VAT. Acceptable wording includes "Reverse charge: Customer to account for the VAT to HMRC" or "Reverse charge: VAT Act 1994 Section 55A applies".
- Show how much VAT is due under the reverse charge, or if that amount cannot be shown, state the VAT rate, without including that VAT in the amount charged to the customer.
When you select "Domestic reverse charge" in the tool, it does both automatically: it sets the VAT line to zero, keeps the VAT out of the total, and prints the statement with the notional rate and amount so the customer can account for it.
Before you choose the reverse charge, confirm the end-user position. If your customer is an end user, a private householder or a business that will not make an onward supply of construction services, they should tell you in writing, and you charge VAT in the normal way. If you are not sure whether the reverse charge applies to a specific job, run it through our VAT reverse charge checker first.
CIS on the invoice
If you are a subcontractor, the Construction Industry Scheme adds a second layer. The contractor deducts money from your payment and passes it to HMRC as an advance towards your tax and National Insurance. Two points matter for the invoice:
- The deduction is taken from the labour element only. The cost of materials is excluded.
- The rate is 20% for subcontractors registered with net payment status, and 30% for subcontractors who are not verified.
In the tool, choose the CIS rate and enter the labour portion of the net total. The deduction is subtracted after the net and VAT lines, so the "Total due" reflects what actually lands in your account. Keep your line items clear about what is labour and what is materials, so the split is defensible if anyone asks.
How the totals work
The calculation is deliberately transparent:
- Net is the sum of your line items.
- VAT is the net multiplied by the rate, unless you select the reverse charge, in which case it is zero and the statement is printed instead.
- CIS is the labour portion multiplied by the CIS rate, and it is subtracted.
- Total due is net plus VAT minus CIS.
Read the document on the right as the source of truth: it is exactly what your customer will see.
After you have the invoice
A clean invoice closes the loop on a job, but the loop starts earlier, with the quote. If you want the price on the invoice to match a quote that won the work in the first place, draft it with the professional quote and estimate generator, and read quotes that win more jobs for the structure that converts. To make sure the price itself leaves you a real margin, see the science of pricing for tradespeople.
To systematise invoicing, CIS and cash flow across the business, the operations page explains how we set that up. When you are ready to put your real numbers behind it, browse the other tools or talk to us.
This tool is a directional template, not tax advice. Whether the reverse charge applies, which VAT rate is correct, and your CIS status all depend on your specific situation; confirm them with your accountant before you issue.