Skip to main content
D
david7144
February 26, 2021
Solved

I am a contractor and subcontractor firstly as a contractor how do I link a bill of a supplier as cis reverse charge applied and does this automatically sort the vat

  • February 26, 2021
  • 2 replies
  • 0 views
Original commenter did not share additional details
Best answer by Kristine Mae

Let me help you from here, David7144.

 

Starting March 1, 2021, QuickBooks Online will have two new VAT codes (20% and 5%). You can use this to account for the VAT reverse charge. When you select the code and save a transaction, our program will automatically account for the reverse charge and the VAT will reflect on the return. 

 

Having said that, you don't have to change anything in the settings.

 

For more information, you can check this article: VAT: domestic reverse charge for building and construction services.

 

Reach out to us again if you have other concerns. We'd be pleased to help you again. Take care!

2 replies

MariaSoledadG
MariaSoledadG
February 27, 2021

I've got a few information about linking a bill of a supplier as CIS reverse charge and how to sort this out, david7144.

 

Once you use the correct Value-Added Tax (VAT) code and tag the supplier as CIS, this will link the bill to the supplier and at the same time automatically sort the VAT. You'll want to set up VAT to manage your VAT process. To do this follow the steps below:

  1. Go to Taxes, then select Set up VAT.
  2. On the Setup VAT page, select the beginning month of your current VAT period.
  3. Select your filing frequency.
  4. Next, choose your VAT accounting scheme.
    • Standard: also known as accrual, select this option if you count your income when you invoice your customer
    • Cash: select this option if you count your income when you receive money from your customer
  5. Enter your VAT registration number.
  6. If your business is entitled, select the Flat Rate Scheme (FRS) checkbox.​
  7. Select Save Your VAT codes are now set up.

Then, you'll have to turn on CIS. Here's how: 

  1. Click the Gear icon, then select Account and Settings.
  2. Click Advanced.
  3. Select Construction Industry Scheme (CIS).
  4. Enter your info.

Next, add your contractors and subcontractors. For more information and guidance, you may need to check the actual figures of CIS return, Select View return under the Action column. 

 

Reach out to us if you need anything else about the CIS reverse charge. We'll always be here to help you. 

D
david7144Author
February 27, 2021

Thanks Maria 

I already have the vat set up and supplier set up with cis previously ,what I think I need to do is amend the settings so when I pay his invoice with vat reverse charge applied  it is recognised by QuickBooks and updates the vat what settings do I need to change for this to happen 

thanks 

Kristine Mae
Kristine MaeAnswer
February 27, 2021

Let me help you from here, David7144.

 

Starting March 1, 2021, QuickBooks Online will have two new VAT codes (20% and 5%). You can use this to account for the VAT reverse charge. When you select the code and save a transaction, our program will automatically account for the reverse charge and the VAT will reflect on the return. 

 

Having said that, you don't have to change anything in the settings.

 

For more information, you can check this article: VAT: domestic reverse charge for building and construction services.

 

Reach out to us again if you have other concerns. We'd be pleased to help you again. Take care!

F
Faith no More
March 25, 2021

KRISTINE MAE

I have just read that if you use Cash Accounting to do your VAT then you have to manually alter your VAT return to account for the Reverse Charge vat you have collected.... when is this going to be sorted ! i have always used Cash Accounting and don't intend to stop as i can wait up to 3 months for payment of my invoices .Quick books have had long enough to get this sorted , What i find most annoying is that i wouldnt have knows that the reverse charge amounts weren't been added to my return if i hadn't double checked how many people are going to think that it is accounted for and not pay what they need to HMRC because i only found out by chance its not on !!! ,i need an accountancy program that does what it says on the tin not half a job and i'm expected to do the other half i'm still altering the Journals in payroll because it doesn't account for the sml employers NI allowance in my NI liabilities account even though it manages to send the correct information to HMRC had an email to say it had been fixed the other week but still not working for me , ive spent this morning looking for another accountancy package as im totally had it with Quickbooks

 

 

 

 

 

E
EmmaM
March 25, 2021

Hello Faith no More, At the moment our senior technicians will have provided you with some steps to do to alter this. We 're working on this as a priority we do not have a date as yet on when this will be changed within the QuickBooks . We are sorry to hear you are looking elsewhere for another product we do see where you are coming from and can only stress the engineers are working on this as a priority

Terms & ConditionsAccessibility statement