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Where a VAT-registered customer is predominantly an end user, but may be re-supplying a very small proportion of the services received (less than 5% by value), this would normally trigger an obligation to apply the reverse charge. But there is a 5% disregard which allows the customer, if they wish, to still issue an end user declaration to their supplier. They do not have to disclose the details of those re-charges to the supplier.

As an example, a local authority commissioning maintenance works on its tenanted properties may also have to re-charge the costs of work done on areas shared with adjacent privately owned properties. The re-charge would mean the local authority would not be an end user under ; however, if the amount being invoiced in respect of recharged works is less than 5% of the supply, the local authority can still be an end user.