# Can I process CIS invoices with AP automation?
Yes! AP automation systems designed for UK markets include built-in CIS (Construction Industry Scheme) support. Elektroluma automatically handles CIS invoices for construction businesses, subcontractors, and trades. CIS deduction calculation: Automatically detects CIS invoices based on industry codes and invoice markers, calculates correct deduction rate (20% for CIS registered subcontractors, 30% for unregistered subcontractors, 0% for gross payment status holders), computes net payment amount after CIS deduction, separates materials from labor for proper CIS treatment (only labor subject to CIS), handles reverse charge VAT on construction services. Invoice processing workflow: (1) Upload or email CIS invoice, (2) System extracts gross amount, labor, materials, (3) Applies appropriate CIS deduction rate, (4) Calculates net payment due, (5) Formats for HMRC monthly CIS return, (6) Exports to accounting software with correct CIS codes. Benefits for construction businesses: HMRC compliance guaranteed (properly formatted CIS returns), time savings (no manual CIS calculations in Excel), error prevention (automatic validation of CIS rates), audit trail (complete history for HMRC inspections), monthly reporting (ready-to-submit CIS300 returns). Example: Subcontractor invoice shows £1,000 labor + £200 materials (£1,200 total + £240 VAT = £1,440 gross). AP automation: Identifies CIS invoice, confirms 20% registered rate, calculates £1,000 × 20% = £200 CIS deduction, determines net payment: £1,440 gross - £200 CIS = £1,240 to pay, creates payment record showing CIS deduction, exports to Xero/QuickBooks with CIS codes, includes in monthly CIS300 return. Additional CIS features: Subcontractor verification checks against HMRC database, monthly CIS reporting summaries, year-end CIS statement generation, integration with payroll systems for employed vs. subcontracted workers.
## Key Takeaways
- Yes!
- AP automation systems designed for UK markets include built-in CIS (Construction Industry Scheme) support.
- Elektroluma automatically handles CIS invoices for construction businesses, subcontractors, and trades.
## Related Topics
- cis invoice processing
- ap automation cis
- construction invoice automation
- cis deduction automation