Solved

Domestic Reverse Charge VAT

Forum|Forum|5 years ago
January 27, 2021
37 replies
56 views

Hi, we are a construction company and urgently need to know when there will be a code for Domestic Reverse Charge VAT. We use Quickbooks Desktop and need to set everything up before 1st March. I cannot see why it is taking so long, you say in previous messages that it will be ready for QBO but not sure for desktop, this does not seem loyal to all of desktops users who pay to use your services each month. How are we going to complete VAT Returns and keep accounts correct without this VAT Code?

QuickBooks Desktop

Best answer by GeorgiaC

Hi Michelle, we've released a guide here which covers setting up the new 20% and 5% Domestic RC CIS codes in Desktop - please get back to us below if you have any Q's!

A

Ashleigh1

Level 14

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.

C

choicieAuthor

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.???

E

EmmaM

Level 10

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😊

G

GeorgiaCAnswer

Level 13

Hi Michelle, we've released a guide here which covers setting up the new 20% and 5% Domestic RC CIS codes in Desktop - please get back to us below if you have any Q's!

C

ChrisD123

I've followed the steps in the guide and in my sales invoice the VAT summary shows CRS rate 0% and 0 VAT. The legal requirement for sales invoices is to show the amount or VAT rate which should be applied ie 20%. Am I missing something?

M

MrNice

I spoke to QB support who told me I need to remove the VAT summary from the invoice template and replace with a text box which includes the VAT rate and the Reverse VAT statement.

@ChrisD123 Thanks for posting that solution Support gave :)

@Rubielyn_J Whilst the solution given by Support to @ChrisD123 would work in certain circumstances (all invoices subject to CIS Reverse Charge VAT) it would not work in the following circumstances as any text box 'text' is persistent and not easily changed:

non Reverse Charge sales
differing rates of VAT (zero rated / 5% / other rates)

A better solution would be for the VAT summary to show the VAT rate & Amount, ideally with the required text included also (VAT Act 1994 Section 55A applies / S55A VATA 94 applies / Customer to pay the VAT to HMRC)

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