Domestic Reverse Charge

We are looking at Domestic Recharge Cost (DRC) applying to adaptation works. We believe that as Council are acting as agent (not commissioning the service), this should be outside of DRC.

I would like to know how other councils are treating VAT on adaption works on private properties.  

Please note following points with regard to the Adaptation works and application of Domestic Reverse Charge.


  1. Brent Council makes payment to suppliers on behalf of Customers (“Clients”). These payments are deemed as disbursement, hence, the Council is effectively an agent.


  1. The residents are the customers of contractor and not London Borough of Brent.


  1. As residents are not VAT registered, it is assumed that normal VAT rules will apply.


  1. It is also assumed that supplies to domestic customers is outside of Domestic Reverse Charge.


  1. Within the contract signed by the client, it is stated clearly that the service is procured by the client and not the Council.

Thank you. 


Thank you.