DRC - obligations of main contractor

This query is in relation to DRC (Domestic Reverse Charge) legislation - We have a subcontractor that has stated they will not be charging us (as main contractor) VAT in relation to construction works where CIS applies. We are not the end user of the services supplied. My understanding is that we must pay the corresponding VAT amount to HMRC? Can we, and if so, how can we claim this VAT back? Normally we would of course reclaim any VAT paid to our suppliers, via our quarterly VAT return.

If you are a recipient of DRC services (your subcontractor is not charging you VAT), and if you are not the end user, then you reverse charge the subcontractors invoice. The subcontractor invoice will not have any VAT charge but it should show the VAT rate and amount of VAT that you have to reverse charge. To reverse charge, you declare the VAT shown on subcontractors invoice in Box 1 of your VAT return and then also reclaim the same amount in Box 4 (so it goes in and out on same return, net effect is Nil), you also record the net value in Box 7. I assume you are a fully taxable business and can reclaim all your input tax (ie, you are not partially exempt). When you come to invoice your customer, if your customer is an end user then you charge VAT as normal. If your customer is not an end user then you invoice them without VAT (your invoice shows the VAT rate and amount of VAT that the customer has to declare). Detailed technical guidance here https://www.gov.uk/guidance/vat-reverse-charge-technical-guide

Hi.
If the criteria is met for the supply to be a reverse charge supply then the reverse charge would beed to be used.
If used then the subcontractor will not charge and account for any VAT and they should itemise this on their invoice to you.
Please see the guidance below;
Check when you must use the VAT domestic reverse charge for building and construction services
VAT domestic reverse charge technical guide
The guidance below explains how you would complete the return:
Completing your VAT Return