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sigma-utilitiesl
March 23, 2021
Question

VAT Reverse Charge

  • March 23, 2021
  • 1 reply
  • 0 views

Afternoon,

 

Our business is subject to both 20% CIS and now the VAT Reverse Charge.

 

On our invoices- we would usually put CIS Labour Standard (20%) and then 20% VAT. Am I correct in thinking I now put CIS Labour Standard (20%) and then 20%RC CIS in the VAT column. This shows up as £0 VAT on the invoice, where as I thought it would display the VAT just not add it onto the total payable. (Like it does when we create bills from our subcontractors using the reverse charge).

 

Do I have to put the VAT amount in the "message" section on the invoice as I have read in other posts? And by using the 20% RC CIS code, even though it is not shown on the invoice, is it still accounted for in the VAT Return?

 

Many Thanks

1 reply

A
Ashleigh1
March 23, 2021

Hello Sigma-utilitiesl, 

 

Welcome to the Community page, 

 

So you are correct that you will need to enter it as this CIS Labour Standard (20%) and then 20%RC CIS in the VAT column.

 

So it will not show the VAT amount on the invoice for you, just the rate as that is all that is needed. You can manually put the VAT amount on if you want to in the memo part of the invoice. The code will post to box 6 on the vat return.  

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