How does CIS work with VAT?

How does CIS work with VAT? CIS and VAT are separate taxes. In October 2026, a contractor still works out your 20% or 30% CIS deduction on the invoice excluding VAT, so VAT, and the reverse charge, do not change the deduction. No. The contractor leaves out any VAT you charged before working out the deduction, so the CIS figure is the same whether or not VAT is on the invoice. No. CIS registration and VAT registration are separate. You must register for VAT once your taxable turnover in the last 12 months goes over £90,000, whether or not you work under CIS. No. The reverse charge changes who pays the VAT to HMRC, not the amount the deduction is worked out on. Either way, the deduction is taken only from the part of the invoice that is not VAT or materials. Read the full answer, with every source, at rightotax.co.uk.