Record a CIS invoice from a subcontractor

Solution Properties

Solution ID:

222001000101292

Last Modified Date:

Fri Apr 10 14:08:47 UTC 2026

Taxonomy Path:

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

Author:

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Record a CIS invoice from a subcontractor

Description

Before creating a CIS invoice for a subcontractor, you need to:

Set up CIS for your business to ensure you have the correct CIS ledger accounts
Set up contact as a subcontractor for CIS

You can then apply CIS and VAT reverse charge to purchase invoices for your CIS contacts, using the steps below.

Cause

Resolution

CIS deductions only calculate on invoice lines where you use a CIS Labour Expense ledger. The deduction applies to the net amount of the CIS labour, exclusive of VAT. To create a CIS purchase invoice:

Select Purchases and then Purchase Invoices.
Select New Invoice.
Select a CIS-enabled contact and a blue CIS-registered notification will appear.
If applicable, select Use Reverse Charge VAT.

▼When to use reverse charge VAT

The invoice from your subcontractor indicates when reverse charge VAT applies.

Reverse charge VAT applies to all invoices for certain services under the CIS scheme. For a complete list, see the Gov.uk website's section on VAT domestic reverse charge for building and construction services.

Remember that the reverse charge applies to these services plus any construction materials used directly for those services.
Enter the CIS labour amount on one line, using a CIS Labour Expense ledger account.
Enter the CIS materials amount on another line, using a CIS materials ledger account.
Your invoice will display labour and material charges, CIS deductions, and reversed VAT where applicable.

▼ See a breakdown of a CIS subcontractor invoice
Once you're happy with your invoice, select Save.

Steps to duplicate