VAT Domestic Reverse Charge: have you got it set up correctly in QBO?

The VAT Domestic Reverse Charge for construction services has been in force since March 2021, but it's still one of the most common areas of confusion we see in the community.

A quick recap: if you're a CIS-registered contractor or subcontractor, VAT-registered, and providing construction services to another VAT-registered business, you generally don't charge VAT — instead the customer accounts for it themselves. That's the DRC.

In QBO, this means using specific tax codes (like '20% RC CIS') rather than standard 20% VAT.

Are you confident your QBO setup is handling DRC correctly? Have you had issues with it — perhaps accidentally charging 20% VAT when DRC should have applied, or vice versa? Share your experience and any tips for getting it right.