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VAT code for subcontractor payed. CIS standard rate. 20%ECG or 20%S?

We are a UK business purchasing the services of another UK business. We pay a few subcontractors for work the do fairly regularly lately. They are categorised as CIS sub-cost of sales. I am unsure whether this would be 20% ECG or 20%S. Can anyone provide more clarity?

3 REPLIES 3
QuickBooks Team

Re: VAT code for subcontractor payed. CIS standard rate. 20%ECG or 20%S?

Hi DCPHoward,

 

We want to make sure your sales tax reports are accurate. You can view this article for reference about the VAT Codes that are automatically set up once the VAT is enabled.

 

I'd also recommend reaching out to your tax adviser, or contact the HMRC to classify the correct taxes.

 

If there's anything else you need help with VAT in QuickBooks, please let us know. Thanks.

Super Explorer ***

Re: VAT code for subcontractor payed. CIS standard rate. 20%ECG or 20%S?

The EC in ECG is short for European community so it isn't that one.

 

It might be worth your while googling the VAT reverse charge for building too.

 

 

QuickBooks Team

Re: VAT code for subcontractor payed. CIS standard rate. 20%ECG or 20%S?

Hi DCPHoward

 

If you are including VAT on your CIS transactions you should be choosing 20%S.