Do we have any idea of the time frame before QuickBooks will be updating to account for cash/DRC automatically without having to post manual adjustments?

Hi there, @gemma-machin. I've got the information you're looking for regarding the Domestic Reverse Charge (DRC).

The DRC has already taken effect last March 2021. QuickBooks will have two new VAT codes (20% and 5%). You'll be able to use them to account for the VAT reverse charge. To activate the codes, make sure VAT is set up and CIS is turned on in QuickBooks. The program will automatically account for the reverse charge once you use these codes.

Follow these steps to activate the codes in QuickBooks:

1. Go to your Tax page.
2. Click Edit VAT.
3. Select Edit rates.
4. Click the Gear icon above VAT codes.
5. Select Include Inactive.
   
6. Use the toggle on the codes that you want to activate in QuickBooks.

Here are some references for a compilation of the most asked questions about this new scheme:

• VAT: domestic reverse charge for building and construction services
• Record Deductions Suffered under CIS

Additionally, you can always review the following VAT reports before filing your return.

• VAT 100 Report
• VAT Detail Report
• VAT exceptions and reports

If you have other questions concerning VAT, please feel free to post them here. I'm always here to help.

Sorry i dont think my question was clear, if i am using cash accounting, i am on the understanding i currently have to make manual adjustments to adjust for the DRC on my VAT return. 

When will the function be released so QB can cope with adjusting the VAT return automatically under the cash accounting scheme.

Hi gemma-machin We don't have any further information on this at the present time. You can however contact our telephone support line when you're ready to submit your return and you'll be escalated to our Tier 2 department who'll explain the how to to account for being on a cash basis.