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Dawn Robinson
Level 3

How do i show VAT amount on an invoice for the new "reverse charge CIS".

I know that I can not charge the contractor VAT it clearly states 20% under the new code 20.% RC CIS however my problem is that the contractor will want to see the VAT amount on the invoice. Do I have to type the amount of the VAT in a notes box on the invoice???? Can someone please help thank you
10 REPLIES 10
mrs reno
Level 2

How do i show VAT amount on an invoice for the new "reverse charge CIS".

I need to know about this too?

Have you had an answer from support yet?

Thank you

ReyJohn_D
Moderator

How do i show VAT amount on an invoice for the new "reverse charge CIS".

I've got a few handy information about VAT reverse charge in QuickBooks Online (QBO), @Dawn Robinson, @mrs reno.

 

When tracking VAT CIS charge in QBO, you'll need to include the following on your invoices:

 

  • Show all the information required on a VAT invoice like the VAT Registration Number, the date of service supplied, etc.
  • Make a note on the invoice that clearly states the domestic reverse charge applies and that the customer is required to account for the VAT due.
  • Clearly state the exact amount of VAT due under the reverse charge, or the rate if the amount cannot be shown but the VAT shouldn't be included in the amount charged to the customer.
  • Must include the reference ‘reverse charge’ according to the VAT regulations 1995.

If you're an existing customer and have turned on VAT and CIS, then you don't need to set up anything. You'll just have to enable and select the VAT code to apply it to invoices or bills.

 

To enable your CIS VAT code:

 

  1. Go to the Taxes page, and then choose Edit VAT.
  2. Select Edit Rates.
  3. Click the gear icon above VAT codes, and then select Include Inactive.
  4. Use the toggle on the codes to activate them in QuickBooks.
    q288.PNG

 

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.

Dawn Robinson
Level 3

How do i show VAT amount on an invoice for the new "reverse charge CIS".

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.

Dawn Robinson
Level 3

How do i show VAT amount on an invoice for the new "reverse charge CIS".

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!!!????? 

IamjuViel
QuickBooks Team

How do i show VAT amount on an invoice for the new "reverse charge CIS".

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. 

  1. Go to the Gear icon.
  2. Choose Custom Form Styles.
  3. From the Custom Form Styles page, select the invoice template you're using.
  4. Click Action from Edit column.
  5. Select the Content tab.
  6. Click the Pencil icon to edit Footer settings. 
  7. Mark the VAT Summary tick box.
  8. Click Done

Also, if you choose to include VAT in the calculation, you can set the invoice to show it. Here's how:

  1. From the Edit invoices page, go to the Content tab. 
  2. Click the Pencil icon to Edit the Contents of the invoice.
  3. Make sure to mark the VAT tick box.
  4. Select the Show more activity options link.
  5. Put a checkmark on the Show tax inclusive amounts tick box.
  6. Click Done.

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.

Hudson2
Level 1

How do i show VAT amount on an invoice for the new "reverse charge CIS".

This doesn't solve the issue, it still does not show the the amount of VAT that my customer has to pay to HMRC. Customers want to see the amounts of RC VAT they have to pay to HMRC on the invoices! 

EmmaM
QuickBooks Team

How do i show VAT amount on an invoice for the new "reverse charge CIS".

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.'

rebus46
Level 1

How do i show VAT amount on an invoice for the new "reverse charge CIS".

Hi 

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

Cheryl66
New Member

How do i show VAT amount on an invoice for the new "reverse charge CIS".

Did you ever get this resolved with QB?

 

rebus46
Level 1

How do i show VAT amount on an invoice for the new "reverse charge CIS".

Hi  Cheryl,

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