CIS bill

I can share some information about VAT and CIS reverse charge in QuickBooks Online, @ZM6.

In QuickBooks Online (QBO), once you've enabled VAT and CIS, you'll just need to enable and select the VAT code to apply it to the bill. To guide you further if you also need to deduct CIS, I suggest reaching out to an accountant to guide you further. This is to avoid messing up your books. 

If you haven't added this subcontractor to your account, check out this article on how to add it to your account: How to add contractors or subcontractors in QuickBooks Online. This will guide you on how to set it up as a CIS subcontractor and their CIS rate. 

Once confirmed, you'll just need to record paying a subcontractor by creating the bill. Here's how: 

1. Go to the + New button to create a bill.
2. Select your subcontractor, QBO will use their CIS rate to calculate the CIS to deduct (CIS withheld). 
3. Enter the full (gross) amounts for each item. 
4. Click on Save and close once done. 

From here, you can submit a CIS return to HMRC about any payments that you've made to your contractors or subcontractors. Refer to this article for detailed guidance on how to submit and check the status of your return: How to submit a CIS return in QuickBooks Online. 

That should let you create CIS transactions. 

If you need further help creating these VAT and CIS transactions. Let me know in the Reply section below. Keep safe and have a great rest of the day!

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@ZM6 wrote:

HI, If a subcontractor issues a bill and has VAT reverse charge on it. Do i also deduct CIS?

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Hi @ZM6 - that depends on the subcontractor verification status (HMRC will tell you whether to apply Gross/20%/30%).

Also, remember that there is no CIS deduction on Materials but VAT RC does apply to Materials as well as labour.

Hope this helps.