How do you do a invoice with domestic reverse charge and deduct CIS?

sam-smcarpentrys · ‎March 21, 2023

Ashleigh1 · ‎March 21, 2023

Hello Sam-Smcarpentrys, Welcome to the Community page, If you are using RC CIS code the VAT will not calculate. There is no VAT to record on an invoice using RC CIS codes. You can include the VAT amount in the message to the customer section if you wish.

paul72 · ‎March 21, 2023

Hi @sam-smcarpentrys

First of all, do you have CIS Switched On?

Turn on CIS in QuickBooks Online

Unless you've created your own Product/Service (with CIS Deduction) you should use the one(s) that QBO creates - I think it's something like CIS Labour Standard (20%).

Materials can also be added (CIS Materials with no deduction).

I don't know how this will appear on a standard invoice template - you may need to look at that or design another template if you also have non-CIS customers.

Using VAT Code RC CIS on all lines will apply the DRC VAT.

QBO doesn't (I think) show anything on a standard invoice template to advise the customer that DRC has been applied - you should add a message to your invoices.

Something like...

* Domestic Reverse Charge VAT applies to all items on this invoice. Customer to account to HMRC for the reverse charge output tax at the relevant rate.*

Hope this helps.

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How do you do a invoice with domestic reverse charge and deduct CIS?

How do you do a invoice with domestic reverse charge and deduct CIS?

How do you do a invoice with domestic reverse charge and deduct CIS?

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