Domestic Reverse Charge VAT in Desktop

choicie · ‎April 21, 2021

Hello

I have followed the instruction sheet to enter the DRC VAT codes correctly for Desktop.

But when I enter a Subcontractor Invoice is adds the VAT to Box 1 and Box 6 as debits. Should not one of them be a credit to cancel each other out or am I being a bit stupid!!

I have double checked I entered the Codes correctly.

Many thanks

John C · ‎April 21, 2021

Hi choice As you are entering an Expense/Bill relating to a subcontractor and allocating the DRC VAT code the amounts should populate in boxes 1, 4 and 7. As the amounts are populating in box 1 and 6 it sounds as if you have either set the code up incorrectly or using the incorrect code. Have you definitely followed the instructions relating to the CIS reverse charge for Purchases Standard item? If you can check the guide here

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John C · ‎April 21, 2021

Hi choicie Are you you entering an invoice that you're sending/issuing to a Contractor or an invoice/bill that you've received from a subcontractor?

choicie · ‎April 21, 2021

Hi I am entering an Invoice that I have recieved from a Subcontractor.

John C · ‎April 21, 2021

Hi choice As you are entering an Expense/Bill relating to a subcontractor and allocating the DRC VAT code the amounts should populate in boxes 1, 4 and 7. As the amounts are populating in box 1 and 6 it sounds as if you have either set the code up incorrectly or using the incorrect code. Have you definitely followed the instructions relating to the CIS reverse charge for Purchases Standard item? If you can check the guide here

choicie · ‎April 21, 2021

Hi John

Yes, I have checked the set up again, and have followed as told. When I enter a subcontractor Invoice in the VAT Code column I have entered CRS which is the code for CIS RC Standard, is this correct as there is not another code to enter. I did a sample run for the VAT Return and the Subcontractor Purchase Invoices are on Box 1 added to the total VAT, and also in Box 4 added to the total VAT. Should they not be entered as a negative?

Ashleigh1 · ‎April 21, 2021

Hello Choicie

So it should be hitting boxes 1, 4 and 7. If it is not then you might have set it up wrong and have missed the Standard purchase group to the new code, so please can you double check this thanks.

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Domestic Reverse Charge VAT in Desktop