What VAT code do I choose on a sales invoice for a 20% item that comes under the CIS domestic reverse charge?

Hello Laura-accounts, 

Welcome to the Community page, 

So you need to make sure that VAT is turned on and CIS is turned on in the main cogwheel settings account and settings section and that you have also enabled the codes in the taxes section>edit vat>edit rates section as well. 

So on the invoice you can select the tax rate that says 20.0% RC CIS Domestic Reverse Charge for Building and Construction Services Standard. 

I also am unsure

On my supplies I'm fine, I can use the 20% RC CIS and it will show the vat going on and off

However if I want to send a Sales invoice to a customer and I have to show it as a RC as they are not the End User I do not get a code showing that I can use, please advise

Hi. So I run a cleaning business - we use domestic reverse charge. Can you advise which VAT  code I should be using on income please, there are so many options 

Making sure you're able to choose the correct VAT code is our priority, clarkanddaniel1.

We're unable to provide the specific VAT code to select. I'd recommend consulting an accountant to ensure that your books remain accurate. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.

For more details about how QuickBooks handles VAT, please see these articles:

• QuickBooks Online VAT Codes
• Learn how QuickBooks Online calculates VAT

I've also added these resources that'll help you track the transactions that are included on the VAT return:

• VAT 100 Report
• VAT Detail Report

I always want to ensure all your queries and concerns will be resolved. If you need additional help with your VAT, please don't hesitate to keep us posted.

Hi @clarkanddaniel1 

Cleaning wouldn't usually be in the scope of CIS (Construction Industry Scheme) which is the main requirement for the 20.0% RC CIS Domestic Reverse Charge for Building and Construction Services Standard that this thread is about.

See https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services ... Only "internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration" is included.

Hope this helps.

Thats exactly what we do, refurbs.

The question is, when accepting an invoice payment on QB should the vat code be 20% s or 20% RC CIS (I have invoiced VAT at 20% RC CIS) 

Hello Clarkanddaniel1, thanks for coming we cannot advise what VAT code you should be using you will need to speak to a trained and qualified accountant or HMRC.

Hi @clarkanddaniel1 

What do you mean by "accepting an invoice payment"?

The VAT Code is not relevant on a payment as you've applied 20RC-CIS on the Invoice.

(the invoice is the VATable transaction - not the payment)

Hi, please see the attached. I have invoiced the VAT at 20.0% RC CIS but when it comes to match the invoice payment the VAT line readds 20.0 %. My question is should it read 20.0 % RC CIS?

Hello clarkanddaniel1, so the VAT code on the bank feed is just what would be applied if you  added the transaction from that screen, it will not apply anything if you match it to an invoice as a payment.

Many thanks - My brain was working overtime, I was under the impression that if I made an invoice out to a client using RC CIS, I would then have to accept the payment under the same VAT code so the system would recognise it as reverse charge