The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect October 2019. Will QBO be introducing a new VAT code for domestic use? There is only an EU RC code at the moment.
Can anyone advise please?
Btw, the 'help' article that comes up as a link is blank on my screen, although it says it was last updated in July.
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There will be an update in the product to add the new VAT code and we will be emailing a communication out to all customers who have the preferences for email communications turned on.
Hi there, carolelmcarre.
The reverse charge code will be available in QuickBooks Online (QBO) on October 1, 2019.
You can check out this article for more information : VAT: Domestic Reverse Charge for Building and Construction Services.
As what my peer mentioned, an email will be sent out to all customers for updates.
Don't worry, I'll also notify you in this thread if the code becomes available.
Let me know if you have any follow-ups or other questions. I'd be happy to help. Have a great day ahead.
Hi, How do I know if I have the preference for email communication turned on please. I am glad QB are doing something about the reverse VAT charge. Thanks.
I'm also happy about the reverse charge announcement, @dkkgroundwork.
Let me help show you how you'll get notified about the update.
As long as your email address is verified in your Account and Settings page, you will be notified by Intuit regarding the domestic reverse charge. Here's how to verify:
You can also receive updates through phone or SMS by clicking the Communications option.
That should do it. Should you need other references you can use in the future, you may also check this helpful article: Configure Accounts and Setting.
I'll be around if you have other questions about the reverse charge. I want to help however I can, Have a good one.
Similarly to QBO, we will be facilitating a way to create a code to use in QuickBooks Desktop for the new domestic (UK) reverse charge for CIS before this comes into effect on the 1st of October.
Thanks for the info. I also at the moment use cash basis accounting and from what I have read this cant be used for the reverse charge. Will Quickbooks have a way to deal with this? Thanks.
for more details HMRC's outlines on the compatibility of the CIS reverse charge and a cash basis of accounting please follow this link, and select the 'Cash accounting scheme' title.
Will quickbooks be equipping the reverse vat code to be able to use with cash accounting so that it shows correctly in the vat return and has correct tax point. Thanks.
There will will be a way to create a code in QuickBooks desktop which hits all of the required VAT 100 boxes for the CIS reverse charge VAT code. With regards the software and it's workings, this will be the case on both a cash based and an accrual based VAT recording method.
However, for more advise on whether or not the new Reverse charge CIS vat code should be implemented on cash VAT, please see the following link.
Thanks for your reply. I notice from the link you sent HMRC have in the last few days decided to delay the implementation for another year due to Brexit and business not being ready.
Thanks for posting back. You are indeed correct, it would appear that the deadline has been extended until 01.10.2020, as per the link.