Reverse Charge VAT Made Simple
After a turbulent year with COVID-19, we now have changes to the VAT rules to implement. The change in VAT rules has been coming for a while, and it is not that complicated.
There are two parts to domestic reverse charge VAT. You will need to change your sales invoices to include that the domestic reverse charge applies and that the customer is required to account for the VAT if you are not invoicing the end-user. You will also need to change how you handle subcontractor purchase invoices.
For sales invoices, you need to decide if the CIS scheme covers the work and if the person or company you are billing is the end-user. For purchase invoices, you need to determine if the CIS scheme covers the work and if you are the end-user.
We handle the sales invoice side by allowing you to define against a billing address if they are the end-user. You only need to set this when you create the billing address, and then it just works for every job you raise. This information flows through the system and controls the vat on the sales invoice, including the codes exported to your accounts system.
Purchasing is similar except that you select if reverse vat applies when you raise the purchase order.
This information flows through the system and controls the vat on the purchase invoice, including the codes exported to your accounts system.
Seamlessly Flowing Into Your Accounts System
Exporting of sales and purchase invoices to your accounts software is also available.
These exports all handle the new domestic reverse vat codes. We currently support integration to Sage, Xero, Quickbooks, Clearbooks and Dimension Accounts.
However, we are also happy to write custom exports if required.
We Are Here To Help
That is all there is to it. Domestic reverse vat does not need to be complicated. If you need help to manage this or any other processes that are causing you di!culties. Please contact us today to find out more or arrange a demonstration - complete the contact form or give us a call on 0161 477 2343