VAT and Domestic Reverse Charge in the construction industry: deferred until 1 March 2021

In February 2019, we covered the Construction Services Domestic Reverse Charge (CSDRC) and the rules being introduced for VAT, based on the guidance published by HMRC. Later on, we covered the further CSDRC guidance that was provided by HMRC. The CSDRC was expected to be introduced on 1 October 2020, following a year’s deferral after industry representatives had raised concerns that businesses weren’t ready for the change.

In response to the impact of coronavirus on the construction sector, a Revenue and Customs Brief (RCB) has just been released by HMRC which defers the introduction of the Domestic Reverse Charge for construction services until 1 March 2021.

The RCB also announces an amendment to the original April 2019 legislation: for businesses to be excluded from the CSDRC because they are end users or intermediary suppliers, they will be required to inform their subcontractors in writing that they are end users or intermediary suppliers.

HMRC remains committed to introducing the CSDRC and, as the RCB explains, has already increased compliance resource to deal with the change.

In light of the extended window of opportunity for you to prepare for the CSDRC, our VAT team would be happy to advise you: please get in touch with your usual BKL contact or use our enquiry form.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


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