In the context of the VAT domestic reverse charge for construction, an end user is a customer who will consume the construction services themselves rather than on-sell them or incorporate them into further construction supplies, and to whom the reverse charge therefore does not apply.
The distinction matters because the DRC only applies where the customer will make an onward supply of the same construction services. When a customer is the final recipient, the normal VAT rules apply: the supplier charges VAT in the usual way, issues a VAT invoice with VAT shown, and accounts for the output tax to HMRC.
Who qualifies as an end user:
- Property owners commissioning building or renovation work for their own occupation.
- Tenants having fit-out or repair work carried out on premises they occupy.
- Developers building for their own use (for example, a company constructing its own headquarters rather than building to sell or let).
- Landlords having maintenance or improvement work done on properties they own and let directly to occupiers.
Who is not an end user:
- A main contractor who engages a subcontractor and will then supply the completed construction work to a developer or client (the services are on-sold, so the DRC applies between the subcontractor and the main contractor).
- A developer who is building to sell or let the finished units.
A customer can notify a supplier in writing that they are an end user if there is any ambiguity, which allows the supplier to invoice with VAT charged in the normal way. It is common for large property owners or housing associations to send standing end-user notifications to their regular contractors.
For worked examples of both end-user and reverse-charge scenarios, see our full guide to the VAT domestic reverse charge in construction.