The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> CIS/VAT Reverse Charge on materials
Post Info TOPIC: CIS/VAT Reverse Charge on materials
GillyP


Veteran Member

Status: Offline
Posts: 54
Date:
CIS/VAT Reverse Charge on materials
Permalink  

Hi all

Apologies if this has been already posted (I did try searching, but didnt find anything), but I am wondering if the VAT reverse charge should be applied to invoices for materials only, raised by a CIS subcontractor?  The VAT Reverse charge is applied to sales invoices where a subcontractor is both CIS and VAT registered, when either labour, or both labour and materials are provided, however, I can't find anything about whether it should be applied when only materials are provided by the CIS and VAT registered subbie - can anyone please advise, rather than sitting on hold to HMRC for an hour! 

The only info I can find relates to when either labour, or labour and materials are provided, and nothing relates to just materials being provided.  I have been advised previously by HMRC that a Materials-only invoice should not be reported under CIS, so I am thinking the same would follow under the new Reverse Charge system ie VAT charged as normal as it isnt both VAT and CIS related?

Thanks in advance!

Gill



__________________

 

 
BMM


Veteran Member

Status: Offline
Posts: 31
Date:
Permalink  

GillyP wrote:

Hi all

Apologies if this has been already posted    

laughing.giflaughing.giflaughing.giflaughing.gif

      (I did try searching, but didnt find anything), but I am wondering if the VAT reverse charge should be applied to invoices for materials only, raised by a CIS subcontractor?  The VAT Reverse charge is applied to sales invoices where a subcontractor is both CIS and VAT registered, when either labour, or both labour and materials are provided, however, I can't find anything about whether it should be applied when only materials are provided by the CIS and VAT registered subbie - can anyone please advise, rather than sitting on hold to HMRC for an hour! 

The only info I can find relates to when either labour, or labour and materials are provided, and nothing relates to just materials being provided.  I have been advised previously by HMRC that a Materials-only invoice should not be reported under CIS, so I am thinking the same would follow under the new Reverse Charge system ie VAT charged as normal as it isnt both VAT and CIS related?

Thanks in advance!

Gill

Most folk are gone



-- Edited by BMM on Tuesday 11th of May 2021 04:47:17 PM

__________________
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink  

 

Are the materials part of a future supply of labour and materials if so then charge VAT? 

Or are they just 'getting' the materials for the contractor in which case it could be classed as a disbursement,

I always include material only invoices on the CIS return as I do not see why you wouldn't if already set up and I always advise to charge VAT on the materials, whether the sub-contractor wishes to reduce the invoice by the VAT amount so no mark up that is up to them, so if not a disbursement then VAT charged under the DRC as long as the contractor is not the end user.



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
GillyP


Veteran Member

Status: Offline
Posts: 54
Date:
Permalink  

Thanks Doug - no, the materials were a one-off on this occasion, so will advise to charge vat as normal, and not subject to Reverse Charge.  Thank you - thats really helpful.

Gill



__________________

 

 
BudgetB


Guru

Status: Offline
Posts: 709
Date:
Permalink  

Yes, material only invoices charge VAT as usual.



__________________

Jenny

 

Responses are my opinion based on the information provided.  All information should be thoroughly checked before being relied on.

 
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> CIS/VAT Reverse Charge on materials
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About