When tracking VAT CIS charge in QBO, you'll need to include the following on your invoices:
To enable your CIS VAT code:
Once you select and apply it to your invoices, QuickBooks will automatically account for the reverse charge. Also, the VAT will be reflected on your return and you don't need to amend or adjust your return.
For more insights, please head to this article: VAT reverse charge CIS.
Lastly, you'll want to run VAT reports to get a glimpse of your taxes. Just navigate through the Taxes page, and then go to the View reports page drop-down.
I'm always around to help answer your VAT queries. I'd be glad to lend a hand.
No sorry not yet, tried to do a live chat with them yesterday, but everything had been done in the post as suggested. Not a problem if i've got to physically type in the vat amount in the notes box on the invoice, but why should we have to do this!!!! not very happy at the moment.
thank you for your response. Everything that you suggested has been done. However my contractor will want to see the vat amount (need to put it on invoice in order for them to see how much the vat is - I need to make it idiot proof for them). I know that vat can not be charged on the invoice , however they will want to see this amount despite the vat code stating 20% VAT RC CIS. Do i have to manually put it on the invoice under the notes box where i put " the reverse charge of 20% applies to this invoice and you are responsible in paying this to HMRC" if I can have some clarification on this would be much appreciated. Livechat with Intuit was a complete and utter farce. No help what so ever. Been a clearly booking/Intuit customer for the last 18 years!!!! Sage seem to have it working why cant intuit!!!?????
This is not the service we want you to experience, @Dawn Robinson.
Let me guide you in enabling the VAT summary in your invoice so your contractor would see the exact VAT amount.
Also, if you choose to include VAT in the calculation, you can set the invoice to show it. Here's how:
You can read through this article to learn more about managing your invoice template: Customise invoices, estimates and sales receipts in QuickBooks Online.
Feel free to leave a comment below if you have other questions or concerns. I'm always here to help.
Hello Hudson2, The amount of VAT does not have to be shown on the invoice for the new reverse charge code only the code itself, if you see the what do i need to include on my invoices in this link. Specifically this part' or the rate of VAT if the VAT amount cannot be shown, but the VAT should not be included in the amount charged to the customer.'
towards the end of February one of the support team showed me how it would work by using the EU reverse charge and this shows the VAT total as a minus and a charge.
Surely Quickbooks should be able to show this on the Domestic reverse charge as the whole idea is transparency with the construction industry VAT. If the VAT figure is shown as a minus and a charge (for our VAT ) with the comment that the client is supposed to pay the amount it makes it so much easier to understand for everybody
No I didn't. I have created a new invoice form that has the phrase 'Domestic reverse charge: S55A VATA 94 applies@ and then I manually calculate the VAT at the respective rate and add it to the comment so the client is aware of the amount.
I have not as yet had any queries. Luckily most of our work is zero rated so is not covered by the DRC.
Good luck R