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Cis invoice example for teams

hi today we're going to look at how to raise a a sales invoice to your customer but include the CIS tax and the domestic reverse vat charge it's important to know that these two items go together the CIS tax and the domestic vat must always be together you can't have one on your invoice without including the other um so it's vital to not reverse the vat on an invoice when somebody is not part of the construction industry scheme now to do this what you'll need is accounting software and here we've got our own software which is free to all our clients um and we're going to choose a client to practice on obviously I'm going to use Fred blogs he's had loads of uh invoices sent um and to we start off by raising the invoice itself and to do this all I'm going to put in is uh sales uh or uh CIS so CIS income um and here I can put a description of the work on many lines as I want uh the unit cost we're going to have just as a simple £1,000 um the vat will be at 20% so the vat will be charged at this point then we're going to first of all take off the tax the CIS tax suffered and that's the actual terminology tax suffered um is going to be 20% so it's going to be £200 now because this tax is being deducted from the invoice it's going to be a minus so we're going to put down minus 200 for the tax um and you can see at the moment it's saying that uh 800 is due plus vat uh because the 800 is the initial 1,000 less the CIS which is 800 and then it is added on uh the vat at200 gets a little confusing because vat and CIS tax are both 20% now lastly all we need to do is we need to add the vat option and here you can see the vat option you open it up and you actually click the part where it says apply the CIS reverse charge and that is literally all you do it will take the vat off you've already taken the CIS tax and it correctly shows you how much is due now the last bit is simple all you do is save the invoice preview it because of course it's going to be on your uh logo uh letter headed paper and then pre once you've previewed it send it to your customer by email and that's it it is so easy thank you for watching