VAT: Domestic Reverse Charge for Building and Construction Services

[alternatyva1]

Hi there.

My business will affected re. “Domestic Reverse Charge for Building and Construction Services” from 1st March 2021 and compare to HMRC guidance I must include on my invoices wording stating that the reverse charge applies. I’m assuming that you will have that option available @ Quickfile system from 1st March 2021, correct?

[Spike]

Just found this from a quick search on the forum.

Construction Industry Scheme (CIS) Domestic Reverse Charge

From 1st March 2021, VAT registered businesses operating in the building and construction industry will need to change the way they collect and report VAT. The new changes will require businesses that are receiving a service from a CIS registered contractor to pay the VAT to HMRC, rather than paying the VAT to the supplier. These changes will apply only to UK VAT registered businesses or individuals supplying services under the Construction Industry Scheme (CIS). How is QuickFile preparing fo…

[alternatyva1]

Thank Spike. I seen that article before but my question is directed to Quickfile support if that function about “reverse charge invoices” will be available in QF system?

[QFMathew]

Hi @alternatyva1

As per the link @Spike posted, yes we will be supporting this. In particular, please see this section of the post.

Hope this helps.

[alternatyva1]

Thanks Matthew - right now I know the answer

[Merry]

Hi Mathew,

Just wondered if you have any updates on DRC for CIS due to start on 1 March 2021?

Many thanks

[ian_roberts]

This was covered in a post from a few days ago.

Construction Industry Scheme (CIS) Domestic Reverse Charge

All the updates were done last year and are currently hidden in the software. They will be switched on during the release scheduled for 28th February. Once these features are available to use you will first need to switch on the CIS VAT handling module in the advanced settings area: [image] From there on you will be able to apply the CIS reverse charge VAT option to your sales and purchase invoices directly from the invoice editor. [image] With this option selected the reverse charge will …