Tax & Compliance
VAT Domestic Reverse Charge for Construction Explained: Why a £45,000 Subcontractor Invoice Should Show No VAT at All
A £45,000 subcontractor invoice with zero VAT on it is not a mistake — it is the VAT Domestic Reverse Charge at work. Here is how the DRC shifts VAT accounting from subcontractor to contractor, with a worked example, journal entries, and the invoicing mistakes that trip up both sides.