eBrief No. 9/09 provides details on invoicing issues in the context of VAT reverse charge on construction services.

The following issues are dealt with:

I. Raising Invoices

The rules relating to time limits for issuing VAT invoices also apply to reverse charge invoices. A reverse charge invoice should be raised within 15 days of the end of the month in which the supply of the service is completed.

VAT should be accounted for in the return for the period in which the invoice is raised or should have been raised.

II. Settlement Vouchers

Settlement vouchers or self-billing arrangements should only be used where there is agreement between the principal contractor and the sub-contractor.

Therefore, if a sub-contractor raises a valid reverse charge invoice on completion of a supply, the principal cannot disregard this by accounting for VAT on the basis of self-billing/settlement vouchers.

III. Retention Money

If a contract provides for a period of retention, the invoice in respect of retention money should be raised within 15 days of the end of the month in which the guarantee period expires.

IV. Invoice issued before and payment made after 1 September 2008

If, prior to 1 September 2008, a sub-contractor raised a VAT invoice on completion of a supply, the sub-contractor is accountable for that VAT and the principal should pay the VAT to the sub-contractor even where payment is made on or after 1 September 2008.

However, in the circumstances above, if the supply was not complete, then the principal should account for the VAT if the payment is made on or after 1 September 2008.

eBrief No. 9/09 is reproduced at Section 2.11.