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Hi,
I am a VAT and CIS registered subcontractor and work for a larger contractor. We also use subcontractors that are VAT and CIS registered.
Can someone help with how I will invoice for works completed from 1st March 2021 to ensure that my books are correct, also how I allocate payments made to subcontractors please?
Sorry if this is a bit vague but fairly new to quickbooks
Solved! Go to Solution.
Hello @northamptonbrick,
Let me help share how you can use the codes of the new VAT Reverse Charge for CIS invoices in QuickBooks Online.
Normally, you'll have to completely describe the reason why your contractor is accountable for VAT on their invoice. Learn more about the new codes and a few examples you can use with this article: What do I need to add to my invoices?
Additionally, I've also included this reference for a compilation of the most commonly asked questions while working with this new scheme: VAT Reverse Charge For Building and Construction Services (CIS).
If you have any other questions, please let me know in the comments below. I'll be here to lend a hand.
Hello Liz Lawson,
Welcome to the Community page,
We currently have no information on this at the moment, it is still getting looked into soon as we know we will let our customers know.
Hi Thanks for this we have the same issue.
Hi
Glad this is being raised. We use VAT registered sub-contractors. Will QB have everything ready for 1 March so it will correctly allocate the net amount due to a sub-contractor, as it currently does when I put in an invoice with a CIS sub-contractor?
I too have this same problem. Hope we can get this sorted soon.
How is it that QB have no information as yet? This scheme was supposed to be introduced in 2019 !!! QB Have had lots of time to prepare and introduce process to deal with this. In effect from March 1st the software is useless to the construction industry ? correct me if I'm wrong.
Hello Dave Linnane,
Thanks for posting on this thread,
Here is some information in regards to the VAT reverse charges https://quickbooks.intuit.com/learn-support/en-uk/help-articles/vat-domestic-reverse-charge-for-buil... , our developers are working on it and soon as we get any more information we will let our customers know.
Hi
Is there any more info on this please
Hello @northamptonbrick,
Let me help share how you can use the codes of the new VAT Reverse Charge for CIS invoices in QuickBooks Online.
Normally, you'll have to completely describe the reason why your contractor is accountable for VAT on their invoice. Learn more about the new codes and a few examples you can use with this article: What do I need to add to my invoices?
Additionally, I've also included this reference for a compilation of the most commonly asked questions while working with this new scheme: VAT Reverse Charge For Building and Construction Services (CIS).
If you have any other questions, please let me know in the comments below. I'll be here to lend a hand.
I understand that invoices should have reference to the DRC as given on the QB help page.
"
What do I need to add to my invoices?
For invoices and other VAT documents, you need to include the following:
Here are some examples of approved references that you can use:
To learn where and how you can add these references to your Sales Forms, check out this article which explains how to customise invoices, estimates and sales receipts."
Can anyone tell me how the amount of reverse charge VAT the client needs to account for can be automatically listed on the sales invoice? I can not see how to add this field to the invoice from the layout info meaning it will have to me manually calculated and written in (leading to errors) when QB could have done this. Both the 20% and reduce 5% rate will frequently need to be used opening up opportunity for error.
Other software packages have hadled this much more smoothly. QB is loosing out to Xero in particular.
Hello, Orsita.
I'll give some information on the current step-by-step process when handling VAT reverse charges.
Currently, adding the reverse charges on a sales invoice is done manually. A workaround is to use a recurring invoice template. This can work perfectly if your client's transactions rarely change over time.
Although, you'll still have the opportunity to tweak or change your invoices as they are created.
To create a template:
If you need more guides on utilising the recurring transactions for the reverse charges, you can check this article: Create recurring transactions in QuickBooks Online.
I would agree that automation would lessen errors whenever you're creating the sales invoices with the reverse charges. Our developers might add an automatic processing for this in the future.
You can sign up for our newsletter updates here: https://quickbooks.intuit.com/uk/blog/.
If you need some help with other processes in QuickBooks Online, you're welcome to browse other articles in our help resources page.
I'm willing to listen to your thoughts if you have concerns regarding QuickBooks. I'm here to address them accordingly.
Please can I jump in here. As a sub-contractor, I've set up the contractor as CIS in accounts and settings, so the invoice correctly defaults to a CIS invoice for this client in QBO. This doesn't seem to happen if the invoice is raised from within the QB app. Equally once the original invoice is created on QBO, you still can't edit that invoice from within the app either - message comes up 'this transaction contains details you can only edit in QBO on the web..... '
Why is this the case please?
I’ve got you covered, @RAS123.
Let me share information on why you’re unable to modify the CIS invoices on the QuickBooks app.
When dealing with CIS transactions like invoices, you’ll want to do it using the web since some features aren’t in the app.
The Community recognizes feedback and product suggestions to make the program better. I’ll take note of this idea personally to help improve your experience. I recommend visiting our QuickBooks blog site, where the latest news, features updates, and future enhancements are posted.
In case you need more tips and information on how to manage your account and business finances. We have available resources, webinars, and training videos on the support page. This helps you understand our product features, functions, and benefits of QuickBooks.
Don’t hesitate to let me know if you have other concerns or QuickBooks questions. I’m always here to help you out. Take care and have a good day!
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