Reverse charge VAT

Hi there, Cooke and Charman.

I'm here to guide you in handling that invoice.

QuickBooks Online has new VAT codes (20% and 5%) that you can use to account for the VAT reverse charge. To activate these codes, please make sure that your VAT is setup and CIS is turned on in QuickBooks. Once done, follow the steps below:

1. Select Taxes from the sidebar menu.
2. Click the Edit VAT button.
3. Choose Edit Rates, then click the Cog/Gear icon above VAT codes.
4. Tick the Include Inactive checkbox.
5. Turn on the codes for the VAT reverse charge.

Then, you'll just have to select these codes upon creating the invoice. This way, the program will automatically account for the reverse charge and the VAT will be reflected on your VAT return. Take note that you may need to consult an accounting professional if you're not sure what percentage to use.

Additionally, there are specific data that you need to include in your invoices to comply with the new domestic reverse charge VAT legislation. To learn more about this topic, you can refer to the What do I need to add to my invoices? section of this article: VAT: domestic reverse charge for building and construction services.

I'm also adding this reference to help manage your VAT setup and transactions in QuickBooks: VAT codes and rates.

Feel welcome to reach out to me again if you need more help in processing your other transactions. The Community is always here for you.