Domestic Reverse Charge (DRC) – Is your business prepared?


Last year the government delayed the introduction of the VAT reverse charge, which must be used for supplies of building and construction services.

From 1 March 2021 this charge will now apply to any standard and reduced-rate VAT services:

  • individuals or business who are VAT registered in the UK
  • reported within the Construction Industry Scheme (CIS)


Following the governments guidelines, please see the below flows charts to show if DRC affects you.

If you sell building and construction services

*Do not use it for services supplied by employment businesses.

Businesses receiving building & construction services

If this applies to your business, why not let us support you by contacting our team on 01670 897407.

For further information on the Domestic Reverse Charge please visit: Check when you must use the VAT reverse charge for building and construction services – GOV.UK (

If there is any uncertainty as to whether the reverse charge applies, please contact the VAT Helpline on 0300 200 3700 (or +44 2920 501 261 if outside the UK).

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