For contractors · Reverse charge VAT
Reverse charge VAT calculator for construction
Calculate construction service VAT (25.5%) both ways and check when reverse charge applies — i.e. which party accounts for the tax. Updated with 2026 VAT rates.
About reverse charge VAT
How does construction reverse charge VAT work?
In construction, reverse charge VAT (VAT Act § 8 c) is often applied. The seller does not add VAT to the invoice; instead the buyer reports and pays the tax. The aim is to prevent the grey economy in long subcontracting chains.
Reverse charge applies when a construction service is sold to another business that itself sells construction services other than occasionally. Mere sale of building materials without installation is not a construction service, and reverse charge never applies to private individuals.
When reverse charge applies, the seller marks VAT 0% on the invoice, a reference to "Reverse charge, VAT Act § 8 c", and the buyer's business ID. Otherwise, construction services are invoiced at the general 25.5% rate.
FAQ
Reverse charge VAT — FAQ
- What is the VAT rate for construction services in 2026?
- The general VAT rate for construction services is 25.5% in 2026. It applies to all construction and repair work and to materials installed as part of the work. The reduced rates of 13.5% and 10% do not apply to construction work.
- When does reverse charge VAT apply in construction?
- Reverse charge applies when you sell a construction service to another business that itself sells construction services other than occasionally. The seller invoices without VAT and the buyer accounts for the tax. It never applies to sales to private individuals.
- What goes on the invoice when reverse charge applies?
- The invoice states VAT 0%, the note "Reverse charge, VAT Act § 8 c", and the buyer's business ID. The buyer reports and pays the VAT independently. The seller does not account for VAT on this sale.