Domestic Reverse Charge VAT

Hello Choicie, 

Welcome to the Community page, 

So CIS isn't supported in Desktop so any VAT codes would need to be manually created in the system. 

This does not help.  In other words if I am a building company quickbooks is not updating VAT Codes for Domestic Reverse Charge VAT, is that what you are stating.  If so how do I manually create VAT Codes and correctly complete a VAT Return.???

Hello Choicie, You can create your own codes within the lists section of Desktop, you can use this article as a guide(it is for the Brexit codes but the screenshots of where to go are the same. Any questions at all let us know:smiling_face_with_smiling_eyes:

https://www.xero.com/blog/2021/01/vat-domestic-reverse-charge-coming-soon/

Zero have it all set up and calculates and amends for you -- why is quickbooks so slow!  We have been with QB for 20 years - were unable to transfer our file over to online due to its size - so are now running 2 quickbooks systems - one now without any automation of reverse VAT

Please can you confirm on the guide that for Sales Items it is 0.00% (not 20%) Also for the Purchases you state -20% in instructions but it shows -0.00% in diagram. Just need to get this correct for our system.

Hello Trish222, 

Thanks for posting on this through, so if you have the 20% and the -20% it equates to the same as the 0%. 

Thanks for replying but still needs confirming.

If Sales is correct at 0% as per your instructions? When I create an invoice in the VAT summary box it states the rate as CRS@0.0% - is this correct? Then we need to state somewhere on invoice - Reverse Charge @ 20% applied and customer needs to account for the VAT

Hi Trish  Did you get a reply to your query, it is all so up in the air!!

No!

Hello Trish222,  Thanks for your reply to the thread we apologise your previous post was missed. We have created an article with a guide on how to create the codes in the product for domestic reverse charge as well as an FAQ guide available here

Hi Emma

Yes I know as I had followed the guide and was asking questions!

The answer I received wasn't very clear. When the instructions for Purchase Standard Items says put in -20% but the diagram clearly shows 0.00% (I am assuming -20% was correct?)

Also when you raise an invoice the VAT Rate says CRS@0% - is this correct? Then we just have to clearly state on invoice that this is subject to the reverse charge and customer to account for the VAT due?

Hello  Trish222, yes it should show 20 percent that image has been requested to be updated. Yes then you would need to clearly note on that on the invoice. It will show on the name as CRS .What we can do if you call our desktop care team on 08081682535 we can make sure the code shows as it should.

Hi I'm using QB desktop and I have followed the instructions for the new vat code etc. Acting as a contractor, I have tried inputting a  trial subcontractors supplier bill, but it is only showing the vat as a minus, which in turn makes the transaction out of balance.  The vat is also only showing up in box 1.  What am I doing wrong!!!  

Did you get an answer to this anomolie ? Purchase invoices appear incorrect - as noted above for test £100 purchase invoice - enter amount to be paid £100 - once RC VAT code applied VAT appears as minus £25 not £20

Hello Michelle, Thanks for making us aware of this can we ask you to call in to our desktop team so we can have a look at the set up of the codes? The number is 08081689535

Hi I saw your query regarding the amount of VAT was wrong £25 not £20, did you get this sorted as I had the same problem?

Many thanks in advance.

Hi all - rather than us all ringing the helpdesk I have listed below the changes to the VAT code you need to make to ensure the Purchase invoices reports correctly on your VAT return

VAT code - must be set up for Vat items for purchase (in drop down list)  to the GROUP not purchase ITEM - this will then calculate the VAT correctly and enter in box 1 and 4 of the return 

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@choicie wrote:

Hi I saw your query regarding the amount of VAT was wrong £25 not £20, did you get this sorted as I had the same problem?

Many thanks in advance.

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I have just tried this out and get the same result, its incorrect.

Hi

Mine is already set to the group and showing £20 added to Box 1

I have just checked and both entries are there, Box 1 and 4, well done Michelle.

What do i need to do on quickbook intuit for the RC?

Hello 283, 

Thanks for commenting on this post, 

If you have a look at this article here it tells you everything you need to know on how to do it in desktop. 

I think I must have set my CIS RC  VAT group up incorrectly (Im using QB desktop), but I cant find anywhere I can view the actual group, or delete it, just an option to create a new one.