CIS Reverse Charge VAT - I invoice my main contractor a lump sum for labour and materials - the labour I use is subcontracted and I buy the materials

Solution Properties

Solution ID:

200427112542832

Last Modified Date:

Wed Mar 23 14:27:58 UTC 2022

Taxonomy Path:

Case category//How do I...//governmental/legislative compliance

Author:

[email protected]

CIS Reverse Charge VAT - I invoice my main contractor a lump sum for labour and materials - the labour I use is subcontracted and I buy the materials - how does the materials VAT work out?

Description

Cause

Resolution

CIS invoices should always be itemised to break down labour and materials, and the onus is on the main contractor to ensure this is the case with any invoices issued. This is because Labour is applicable to CIS tax while materials are not.

In terms of VAT, if an invoice includes labour and materials this is deemed a 'mixed supply' and the entire invoice would be applicable to reverse charge VAT.

[BCB:90:CIS - Sales:ECB]

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