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AnneK1
Level 2

VAT Reverse Charge CIS UK

I have read numerous posts asking for information when QB online will be updated to comply with the changes from 1 March 2021 for CIS VAT reverse charge, and I would like further clarification please.

Please can you confirm when QB will be updated and what training will be made available for customers on how to apply it, and the implications for VAT returns?  Having attended an HMRC webinar it appears that the Invoice needs to say - VAT reverse charge applies.  Will this be an option in the VAT code drop down box?  With only 4 weeks to go, it feel like this is more stressful than it needs to be.  It would also be helpful if QB could provide regular updates to customers on future developments, instead of having to search under endless Q and A headings - thank you.

Solved
Best answer February 02, 2021

Accepted Solutions
GeorgiaC
QuickBooks Team

VAT Reverse Charge CIS UK

Thanks for getting back to us on this thread AnneK1, our product developers are currently working on building the new code in line with HMRC's guidelines and this will be ready for use on March 1st, 2021, you can see further details on this here and we'll be posting further notifications and emails once this is live. 🙂

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GlinetteC
Moderator

VAT Reverse Charge CIS UK

I can help share some insights about the VAT reverse charge, AnneK1.

 

Let's make sure that you've set up CIS for your company. Here's how to turn this on in QBO:

 

  1. Click on the Gear icon > Company Settings (or Account and Settings depending on what you see).
  2. Click Advanced.
  3. Select Construction Industry Scheme (CIS).
  4. Enter your info.

To learn more detailed information, please check it here: CIS in QuickBooks Online.

 

Need more information regarding the VAT reverse charge? You can check these resources for guidance and details how:

 

If you have other questions concerning VAT, please feel free to post them here. I'll be glad to answer them.

AnneK1
Level 2

VAT Reverse Charge CIS UK

Thank you for your reply.  We are already set up for CIS and I have attended an HMRC webinar, so understand what needs to happen in relation as to whether or not we need to apply this charge.

 

My query is how this will be actioned within the Invoice options available in Quickbooks?

How will it show on the Invoice that the reverse VAT charge has been applied? Will a new drop down box be available under the VAT rate?

Also, how will this be accounted for in the VAT returns? Presumably your developers are working on some coding to take these type of transactions into account? Thank you

GeorgiaC
QuickBooks Team

VAT Reverse Charge CIS UK

Thanks for getting back to us on this thread AnneK1, our product developers are currently working on building the new code in line with HMRC's guidelines and this will be ready for use on March 1st, 2021, you can see further details on this here and we'll be posting further notifications and emails once this is live. 🙂

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m11m
Level 2

VAT Reverse Charge CIS UK

I watched a 3 hour comprehensive webinar on this subject from the ACCA this morning who, time and time again, referred to another brand of software having had this facility in place since last year and almost reassuring the audience that as long as the basic principles of the topic are understood and applied correctly, that the software packages we use will automatically account for and inhabit the correct boxes on VAT returns etc. prepared on 1st March, 2021. 

 

Having not received any notifications of such updates from Intuit I was keen to see that the presenter's assumptions applied to our chosen platform for accounting software.

 

To say I was disappointed is an understatement! As the DRC revolves only around 20% and 5% supplies, where is the 5% reverse charge rate in the VAT settings and more worryingly, what is this 0.0% RC code designed to be used for???!!!!

 

We need to be able to prepare for this change internally and are under immense pressure from clients who are relying on us to be able to advise them on how QBO will help them implement the change. Can someone tell me when this is likely to be and before the 1st March is not sufficient enough of an answer!? 

 

 

AnneK1
Level 2

VAT Reverse Charge CIS UK

Hi,

I am wondering if you have received a reply from QB yet?

I am now starting to feel quite stressed with how late in the day we are hearing from QB online over exactly what is being worked on.  I sincerely hope that we hear something this week. It's not easy to search for news on this either, there seem to be numerous pages in VAT - it should all be in one place.  I wonder if the intention will be to send out a generic email to all subscribers with the update? Or even a newsletter to keep everyone up to date. It shouldn't be this hard!

Laurence19
Level 3

VAT Reverse Charge CIS UK

Hi I am also concerned QB leaving it to the last moment just had a link from accountant showing what xero have in place already and a full content explaining how it works also what the invoice template looks like. They are obviously more on the ball with this 

EmmaM
QuickBooks Team

VAT Reverse Charge CIS UK

Hi Laurence, we do see why you are concerned and we will have the feature in place for the 1st March HMRC's date  where this needs to be live more information on this can be found here and this link will be updated

Julie Harbot
Level 2

VAT Reverse Charge CIS UK

The codes need to be in quickbooks now, people are expecting training on how to raise invoices before the 1st March and only going live with the codes on that date is no good, we need them now. 

Laurence19
Level 3

VAT Reverse Charge CIS UK

Hopefully they will make it easy just be able to do invoices as normal and just add the DRC code from the vat drop down HOPEFULLY

GL07
Level 1

VAT Reverse Charge CIS UK

I have spoke to QB support today and I am also concerned about this having being left until the last minute, I have been told that it will not be available until 1st March.

 

This is too late in my opinion after all, QB have had over 12 months to prepare for this. How are we expected to advise clients and ensure that they are invoicing correctly given the potential fraud accusations from HMRC????

Julie Harbot
Level 2

VAT Reverse Charge CIS UK

Agreed 1st March is far too late for the codes to be available.  I am training people now and having to use EU reverse charge just to show how it works, which is dangerous as the client base its aimed at are not the most thorough of book-keepers. 

 

I am annoyed as I have recommended QB over others for the building trade as it deals with CIS better than the other main players.

 

 

Julie Harbot
Level 2

VAT Reverse Charge CIS UK

I have heard nothing other than it will only be live on 1st March.  Thats far too late in my opinion.

KathM
Level 3

VAT Reverse Charge CIS UK

QB have had an extension of a year to implement an amendment to the system to comply with the CIS Reverse Charge Scheme, something that was decided in 2017!!!!

Do they not understand the implications for the customers trying to use this system?  Go live date is a week away and we've still not got a clue what it's going to look like, how to use it, or even what guidance notes will be available.

We are expected to pay our money and just sit and wait until they decide to release the update with very little communication.

When you contact QB for information you are told it will be available 1st March 2021.

QB you are a joke and need to get in the real world, your customers need information before this date. What's the odd's it won't work??

EmmaM
QuickBooks Team

VAT Reverse Charge CIS UK

Hello Marsland, Thanks for reaching out about the upcoming changes. We do take on board it is a week away and you do not know what it will look like. What we can offer to do is have an expert contact you directly to go through(on a non live version) what the change will look like. We can contact you today you on the email you provided for the Community and arrange a time for the call from tomorrow  and the best contact number for you.

GemmaPi
Level 2

VAT Reverse Charge CIS UK

Good morning, can I also arrange to have an expert contact me please, I have clients asking me about this and it is extremely frustrating having to tell them that I have no advice to give them until 1st March.  

GeorgiaC
QuickBooks Team

VAT Reverse Charge CIS UK

Hi GemmaPi

 

We have sent an email requesting contact information, please reply directly to that so we can have an expert get in touch. 🙇‍♀️

anthony41
Level 1

VAT Reverse Charge CIS UK

Has anyone had a similar problem with the drop down list of VAT codes for the domestic reverse charge VAT rates.

 

I have the codes selected in the VAT codes list but when I try to select these from the invoice vat menu they do not appear.

Ashleigh1
QuickBooks Team

VAT Reverse Charge CIS UK

Hello Anthony41, thanks for commenting on this post, have you enabled the codes in the taxes section? Also are you using a CIS labour service too. 

 

If you are and they are not showing then could you please try some troubleshooting steps for us could you clear your cache and cookies, this link here will help close the browser down, reload it log into your account and see if you can then select the code. 

 

Let us know how you get on. 

GemmaPi
Level 2

VAT Reverse Charge CIS UK

Morning anthony41,   Have you enabled CIS within QB? you need to have CIS turned on, the customer / suppler must be marked as a contractor.  You can then choice the CIS product / service on the invoices which allows you to chose the new codes.   Hope that helps. 

Julie Harbot
Level 2

VAT Reverse Charge CIS UK

I have tried raising invoices this morning and you need to be using a cis code for the invoice and have activated the new domestic codes.  It is working fine for me. 

Laurence19
Level 3

VAT Reverse Charge CIS UK

Hi I have activated the DRC also but not done an invoice yet but think it will work ok. Had you ask how to activate new codes but it turned out to be quite easy the little gear icon you click on I have never noticed before ! 

Hopefully will be up and running when I do new invoice might try a dummy one to make later

Laurence19
Level 3

VAT Reverse Charge CIS UK

Go to vat

click edit vat

click edit rate

click on small gear icon above drop down codes (really small icon)

click include inactive

then click on Domestic Reverse Code

regards 

laurence 

Laurence19
Level 3

VAT Reverse Charge CIS UK

What I am not happy about is it appears you have to type on every invoice in message box 

Reverse charge applies to items marked DRC. Customer need to account for VAT to HMRC?

i thought this would be printed automatically 

something else to remember to do 

Anybody have an easier option 

Laurence

GemmaPi
Level 2

VAT Reverse Charge CIS UK

Hi Laurence19, I have set up a second invoice template with the wording on.