As the new DRC VAT scheme started yesterday, any clients on Xero that fall under the reverse charge for CIS ruling will need to update their tax codes on Xero, to account for the reverse charge.
To do this simply go to:
Accounting> Advanced > Tax Rates > Add domestic reverse charge tax rates
This will update the bills/ invoices templates on Xero, so instead of using 20% VAT on income & expenses, an option for 20% reverse charge will also be available.
If we manage your Xero account, we will do this for you if we believe you will fall under the new ruling.
As always, if you require any assistance or have any questions, our helpful VAT team are always on hand.