When will this be available for Desk Top? This change is coming in very soon. We feel we need to be prepared and may need to change our invoice templates for the Domestic Reverse Charge.
I just want to emphasise AprID's point about how essential this change is for our business. In just over 2 months time the majority of our sales invoices will have to comply with the new domestic (UK) reverse charge and we have a large amount of work to prepare new invoice and credit note templates. This legislation was originally intended to come into effect on 01 October 2019 and it really worries me that not only do not have a Desktop solution in place already, but can't even commit to a date when it will be available!
Hello NickL42, Thanks for reaching out to us, We'll be contacting all customers via email as soon as we can with an update on this. There were some VAT changes regards Brexit we needed to make for January first.
I take it that it is not just as simple as adding a VAT code to QuickBooks, as per the HMRC website you cannot use the cash basis when using the VAT reverse charge. Will QuickBooks be able to handle using cash basis for standard rated invoices, and invoice basis for RC invoices?
This is exactly what I want to know too. This is going to be a disaster if the package can't handle cash accounting VAT and the reverse charge. There has been plenty time for QB to deal with this since it was originally due to happen in October 2019.
I have some information about how QuickBooks handles the VAT cash accounting method and reverse charge. If you've set up VAT correctly in QBO, you'll have the option to select Cash or Standard from the settings.
To see it:
For more information on whether or not the new Reverse charge CIS VAT code should be implemented on cash VAT, please check out this link.
I'm also attaching these handy articles about VAT that can help you along the way.
If you need help with other tasks in QBO, you can browse for specific topics here and look for responses that fit your concern.
Thank you for joining us today and please don't hesitate to reply to me anytime if you have other questions with VAT. I'll be happy to answer them for you. Take care and stay safe.
Hi Shiella Grace
Please can you confirm the specific VAT code that needs to be used when invoicing a contractor and also receiving subcontractor invoices. I have not received an email updates with this information.
Thanks for posting on this thread,
We are unable to tell you which VAT code to use as we are not trained accountants, just technical support. We would advise if you are unsure what VAT code to use to seek advice from a trained accountant they will be able to advise you which code to use.
QuickBooks answer here isn't very helpful. You would think they would be able to advise which VAT code is the Reverse Charge VAT code. I'm sure if you had asked which VAT code is 20% they would be able to tell you, without telling you to speak to an accountant.
I have spoken with QuickBooks recently, and they have advised that reverse charge VAT for CIS is not yet set up in QB, and an update will be out soon (hopefully before 1st March!)
Thank you, it wasn’t helpful at all!
I will keep checking back for updates, and hope, like you say, to be updated soon! Really not happy QB haven’t got this ready yet, or at least a decent response.
Hello Firepaw. Similar to the Brexit codes the domestic reverse charge for CIS will be in place in QuickBooks for the 1st March. Rest assured it will be updated in the product in time.
Hi Emma, That is good to hear. Will QB also be releasing new invoice / credit note templates (in QB Desktop) for the Domestic Reverse Charge that show the VAT Chargeable as zero but also shows as a note what the VAT would have been if the Domestic Reverse Charge didn't apply (this is a requirement of the new HMRC regulations around Domestic Reverse Charge).
I'm glad that you're happy about this incoming update, @NickL42.
While these updates will be available in QuickBooks Online, we're unable to tell the exact time when Intuit will be releasing the new HMRC regulations around Domestic Reverse Charge in QuickBooks Desktop.
I'm also adding these great articles about VAT that can guide you with your business.
Let me know if you need anything else. The Community is always here to share and help. Take care!
I'm only happy about it if the changes are going to be made in the QB Desktop version!
How can QB not have a date for a release for the UK Domestic Reverse Charge when this is a legal tax / accounting requirement for UK companies from 1st March 2021 - that's basically in 4 weeks time!
Does this indicate that QB are no longer willing to support their QB Desktop customers and we should all go and look for another product???
Unbelievable that we pay a monthly support subscription and no update ready 4 weeks before the new regulation that has been known about for a very long time! What are we paying for?
Just adding myself to the mounting amount of customers who are desperate to plan for the dreaded reverse VAT issue.
Very surprised this has not been addressed yet, our invoicing and the way we report VAT to HMRC is going to drastically change and we need to be ready for it.
The answer here from QB does not actually tell us how to operate on a cash basis and still handle the reverse charge VAT rules. We have only 3 weeks to get this implemented and it may well need forms changing and processes documenting for staff etc. We HAVE to have an update and documentation NOW.