This article, "CIS and Domestic Reverse Charge Mess," originally appeared on AccountingWeb.com.
Whilst preparing accounts, I have found that my client paid a scaffolder, but has only just received the invoices.
The work is for supply, erection, hire and dismantling of scaffolding, and falls within the CIS regime, and the Domestic reverse charge- neither of which are shown at all on the invoices. I have raised a query with the scaffolder’s accountant and here is the reply
Invoice no 921 dated 9/6/2023 was correct. VAT under reverse charges and 20% CIS was deducted from labour. Your client need to provide CIS certificate for the year 2023-24 for all the deductions.Following two invoices, client has received payment in advance which was inclusive of VAT and without any deductions so my client has decided to raise the invoices with VAT instead of refunding he money. No reverse charges apply to those two invoices where my client has received payment inclusive of VAT. Going onward, it will be under reverse charge and CIS deduction for labour part. Please ask your client not to pay VAT to my client and deduct CIS for labour charges before making a payment.
My question is this- Is is me or is it them?
Thanks for your time