Vat Domestic Reverse Charge

[BhamMark]

From 1st March 2021, many subcontractors covered by the CIS scheme now have to apply ‘Reverse Charge’ of Vat, such that they only invoice the net but show the Vat (or Vat Rate) that they would normally have charged.
When they, as the supplier, do their Vat return the net should appear in Box 6 as usual, but nothing is added to Box 1.
When I, as the customer, do my Vat return, the net goes into box 7 as usual, but the ‘Vat amount’ has to be added to both box 2 and box 1.
Can I do this by raising a VAT-ONLY sales invoice for the relevant amount, or is there a better way. Here a link that explains VAT Act 1994 S55A if you are interested. https://youtu.be/bA8zU79ceHA

[ian_roberts]

This is all handled automatically if you tick the “CIS reverse charge” option under the “additional VAT options” section:

VAT Options Explained

When creating a sales or purchase invoice in QuickFile you will see a number of additional VAT options in the invoice editor. These options can be used to control the boxes within which the NET and VAT totals are reported in your VAT return. In this guide we explain when to use each of the VAT options and the effect that each will have on the VAT return. VAT on sales The examples provided are below for standard VAT accounting and are based on a £1000 sales invoice plus VAT (where applicable). …

Also:

@BhamMark

When I, as the customer, do my Vat return, the net goes into box 7 as usual, but the ‘Vat amount’ has to be added to both box 2 and box 1.

Box 4, not box 2.

[BhamMark]

Great answer - both bits. QuickFile continues to impress.

[BhamMark]

However I import my purchase invoices and there doesn’t appear to be an import field to specify the Vat type.
Am I going to be able to import CIS reverse charge purchase invoices?

[QFBeth]

Hi @BhamMark,

If you bulk upload your invoices or create them from the receipt hub then there are only basic VAT settings available with these methods. You can still upload the invoices using these methods but then you would need to go back into the invoices to check and amend the VAT settings accordingly

[BhamMark]

Hi,
Thanks for confirming that the upload doesn’t offer this extra feature, but that I can go in and ‘correct’ them after import. As I don’t have many affected by this, that’s fine for me, but maybe it could be added as a possible improvement to the import facility in the future.

[QFBeth]

Hi @BhamMark,

I have mentioned this to the dev team to be considered