Reverse Charge Domestic VAT Made Simple
Life is Better When it's 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, but fear not... it's not that complicated.
There are two parts to domestic reverse charge VAT.
You 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 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 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 whether or not 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 in to 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.
That is all there is to it. Domestic reverse VAT does not need to be complicated.
We Are Here to Help
If you would like to find out more or arrange a demonstration, please complete this form or call us on: 0161 477 2343