VAT/CIS

Mantas
Mantas Registered Posts: 3 New contributor ?
Hello,

I was hoping if someone could assist me with below:

In the past my company has register for CIS scheme as we had one customer related for this, but we don’t use it. We are now water treatment company.(VAT registered)
All of our Invoices are not related to CIS scheme.
My customer is register for CIS and now we are having a misunderstanding with him.
We have provided work for Chlorination and dosing which is not CIS related and my customer is not paying and trying to make us change Invoice to VAT reverse charge, which we have paid VAT regards this. Invoices are older than 1 year…
Also my client is refusing to pay as he is stating he has paid VAT already to HMRC, but I don’t understand how he could done this as our invoices have never showed VAT reverse charge and he has not paid us for those invoices yet….

Can I kindly ask for advise if we have not made any mistake and we are right to keep invoice as VAT 20% and tell customer again that they are thinking not correctly about CIS scheme?





Client is asking to sing their final accounts offer which they have deducted 20% saying it is reverse charge and they are not paying any fees till we accept it. Work has been completed long time ago...
Please see attached picture of client saying we still need to follow CIS, also my client is main contractor. They should paid our invoice including VAT, claimed it back and paid last VAT to HRMC.....

Thank you,

Answers

  • douglasstroud
    douglasstroud Registered Posts: 295 Dedicated contributor ? ? ?
    Is the work you provided definitely not part of the CIS scheme?
    Will your clients also be deducting CIS tax from you?
  • Mantas
    Mantas Registered Posts: 3 New contributor ?
    We have provided work for Chlorination and dosing which is not CIS related and we sent them Invoice including 20%VAT....
  • douglasstroud
    douglasstroud Registered Posts: 295 Dedicated contributor ? ? ?
    edited September 2022
    So have you spoke to the client and explained to them that the work you provided is not within the CIS scheme? If so what was their reply?
    It’s whether it’s within CIS that determines the VAT and if DRC is in play.
  • Mantas
    Mantas Registered Posts: 3 New contributor ?
    Their answer been, that we don't know what we are doing... And yes we tried to explain to them, that this is Vatable Invoice, it is not related to CIS cheme. Even Worksheet provided PO from them shows VAT price. Nothing related to CIS...
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