Please enable JavaScript to view this site.

VT Transaction+

Navigation: Value Added Tax > Domestic reverse charge VAT for construction services

Creating an invoice template for DRC services

Scroll Prev Top Next More

Introduction

HMRC require sales invoices for DRC services to display certain wording (see Invoice documentation), and provide an example of this.

The instructions below are to create an invoice document template similar to HMRC's example only.

This template can then be selected when raising the invoice.

To raise the invoice itself, please refer to Raising a DRC sales invoice.

To create the template:

Note: this template should only be used for items subject to the domestic reverse charge and CIS tax deductions. Other items where VAT is charged by the subcontractor should be invoiced separately.

1.When creating the template you will need to import a document file in step 5. Click on the following link to download the file to your downloads folder:

2.In VT Transaction+ select Setup>Invoices>Templates.

3.In the Invoice Templates dialog, to create a new template, select Service>New:

DRC service1

4.In the New Invoice Template dialog, enter a name for the template, e.g. Domestic reverse charge services.

Then enter text similar to HMRC's example invoice in the Optional text at bottom box, e.g. 'Customer to account to HMRC for the reverse charge output tax on the VAT exclusive price of items marked 'reverse charge' at the relevant VAT rate as shown above.':

DRC2

5.Select Document and Page Setup and select Import>From File:

New inv temp3

6.Select the document file you downloaded in Step 1. from your Downloads folder:

download_DRC

7.The name DRC Service should then appear under Current Document. Click OK:

New inv temp4

8.You are then returned to the Invoice Template screen where you will now see the invoice template in the Templates list.

You can make this the default template by selecting Set As Default.

default

This template will now be the default template when you print an invoice, therefore when you want to print invoices for non-DRC sales, you must set a different template as the default.
Alternatively, if you do not want to make this the default template, you can select it when raising the invoice:

 Select

When you generate an invoice using the template it will display as follows:

Example

Using the template for the CIS deduction        

The DRC template can also be used for sales invoice transactions where a CIS deduction is included, and will display as follows:

Example 2