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info1399
Level 1

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

 
189 REPLIES 189
EmmaM
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

Hello info1399, we'll be making sure the QuickBooks is ready for the new VAT code.

AprID
Level 1

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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. 

EmmaM
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

Hello AprID, we do not at present have an exact date for the desktop product, as soon as we do we'll be making users aware of the changes.

NickL42
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

Hi EmmaM,

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!

EmmaM
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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. 

ewan-france
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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?

John C
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

Hi ewan-france At this point we don't have any specific information on this however our customers will be contacted via email in due course.

dkkgroundwork
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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. 

ShiellaGraceA
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

Hello @dkkgroundwork,

 

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:

 

  1. Go to Taxes, then select VAT.
  2. Tap the Edit VAT drop-down, then tick Edit settings.
  3. Under VAT accounting scheme, choose Cash.
  4. Click Save.

 

 

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.

Howe2
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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.

 

Many thanks

Amanda

Ashleigh1
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

Hello Howe2, 

 

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. 

ewan-france
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic 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!)

Howe2
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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.

Firepaw
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

I need to know this too, posting so I receive updates

EmmaM
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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. 

NickL42
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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).

Thanks,

Nick 

Jovychris_A
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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!

NickL42
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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???

Lisa S47
Level 1

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

I need to know also so am posting so I receive updates.

Rem11
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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?

Tom J Chester
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

Hopefully this amendment to VAT accounting will be advised to paying users soon!

 

Thank you

WickedWitch
Level 2

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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.

 

Rachel

askipperRAB
Level 3

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

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.

EmmaM
QuickBooks Team

The new domestic (UK) reverse charge for CIS sub contractor invoices comes into effect 1 March 2021. Will QBO be introducing a new VAT code for domestic use?

Hello askipperRAB, we'll be providing updates as soon as it is in the product and available to use. We'll also be updating this link as well with more information.

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