Commusoft supports 'Domestic Reverse charge VAT' inline with the latest HMRC legislation.
What is domestic reverse charge VAT?
Domestic reverse charge VAT legislation is a change in the way CIS registered construction businesses handle and pay VAT.
Who will it affect?
It affects VAT registered construction businesses who supply or receive construction and building services under the Construction Industry Scheme (CIS). It means the customer will be responsible for the VAT due to HMRC instead of the supplier.
Please note: this feature may need to be turned on in your accounting package in order for it to fully work with Commusoft. If you are not familiar with this feature please contact your package provider for advice on activating this feature.
Supported packages:
- Xero
- Quickbooks online
- Freeagent
- Sage Accounting (online)
- Sage 50/Instant (Version 27.1 or above only)
When creating a customer or supplier invoice you will now have a drop down option for 'Domestic Reverse Charge VAT' at 5% or 20% as well as the existing standard VAT rates of 0%, 5% and 20%.
This will be marked as a 'Domestic reverse charge' at the selected percentage.