What is the CIS VAT reverse charge? How do you account for VAT? Can you still cash account for VAT? What administrative changes do I need in order to operate the reverse charge? 

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If a Developer is recharging construction costs under a Development Funding Agreement to say a pension fund who have identified themselves as an End User they would not pay VAT to their Main contractor under DRC rules but would recharge VAT under...

If a Developer is recharging construction costs under a Development Funding Agreement to say a pension fund who have identified themselves as an End User they would not pay VAT to their Main contractor under DRC rules but would recharge VAT under their DFA?

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Can I confirm my understanding of your example of 'Fred the Builder' above. You say that Fred is an end-user. So, if Dave the Roofer is CIS/VAT registered and works a a subbie for Fred on a domestic house project, is Fred an end-user as far as...

Can I confirm my understanding of your example of 'Fred the Builder' above. You say that Fred is an end-user. So, if Dave the Roofer is CIS/VAT registered and works a a subbie for Fred on a domestic house project, is Fred an end-user as far as Dave is concerned. If Fred writes to Dave and states that for the purposes of the CIS VAT DRC he is the end-user, Dave would send a normal invoice with VAT to Fred for his work (i.e. the DRC is not applied).

A majority of accountants I'm talking to at the moment are of the opinion that Fred is not an end-user and the DRC should be applied when Dave is raising his invoice to Fred. This is because Fred is providing on-going building services to his customer (who is the domestic end-user).

This is a common scenario, so some clarity would be gratefully received. I've tried to call HMRC on this matter and they can't/won't answer the specific issue. Instead, they just refer me to their technical guidance which frankly doesn't help!

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The example is the one in Overview. We are told that Fred is not making supplies that are within CIS to his end customer, hence he is an 'End user'.
I must admit it's a bad example and looks like one of those trick questions that you get in...

The example is the one in Overview. We are told that Fred is not making supplies that are within CIS to his end customer, hence he is an 'End user'.
I must admit it's a bad example and looks like one of those trick questions that you get in exams. You will probably ask in that case what on earth is he supplying to his customer if he is CIS registered and using CIS suppliers! I have added a better example.

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Hello, if a contractor has paid the full amount in error on an invoice (post-March 1st 2021) where the supplier had assumed he was the end user and he isn't, can he go back to the supplier and request a credit note?Many thanks

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The second bullet point in the example states 'from October 2020'.
This needs updating to 1 March 2021.

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Please can you advise if this applies to invoices raised and received after 1st March (based on invoice date) or payment date.
Say we have received invoice on 15th March dated 28th Feb?
Would we apply the vat reverse charge on this occasion?

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In the above example it states that " The Developer will sell the finished commercial building to Enduser, its client". Therefore, "Developer" (being the property developer) is the end user and therefore John the roofer should not reverse charge....

In the above example it states that " The Developer will sell the finished commercial building to Enduser, its client". Therefore, "Developer" (being the property developer) is the end user and therefore John the roofer should not reverse charge. Developer is not supplying services which fall within the CIS provisions.

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Thank you for point that out, I had missed out the second character in the example 'Contractor'. I have also added a couple more bullet points for clarification.

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Anyone able to confirm that CIOT has asked for a delay to the October 1 date?

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Yes. Its probably unlikely that it will be delayed however we are reporting on this next week when we have done a little more research.

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