View or amend the VAT settings
- To view or amend your VAT settings, click Settings, click Company Preferences then click VAT.
VAT Details
| VAT Reg | This is your company's VAT registration number. |
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| Non-Vatable Tax Code | By default, this is T9 and is the tax code that you should use for transactions that don't involve VAT. It's also used for automatic postings that don't involve VAT, for example, bank transfers. If you post transactions using this tax code, they aren't included on the VAT Return. If you want to change this default tax code, from the drop-down list choose the tax code you require. |
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| Item VAT Amendable | When you enter an invoice, credit or order, the VAT calculate automatically based on the net value and the tax code. If you want to manually change the VAT amount, you must select this check box. |
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| Validate VAT Number | If you want Sage Accounts to check the validity of any VAT registration numbers you enter, select this check box. |
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| VAT Scheme | This shows your VAT scheme. You can choose from the following VAT schemes:- Standard VAT - Where you account for VAT at the point of sale.
- VAT Cash Accounting - Where you account for VAT when money for goods or services is paid or received.
To change the VAT scheme, from the drop-down list choose the required VAT scheme. |
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Verification Settings
When you calculate the VAT Return, you can run extra checks on your data by selecting these options. These checks help to ensure your VAT Return is correct before you submit the values to the Revenue. Once you calculate the VAT Return, you can view the results of these checks and then make amendments as required.
TIP: v28.1 and above - You can use the Select all and Clear buttons to add or remove ticks froim all of the boxes.
| Identify possible duplicate transactions | Checks for transactions with a matching account reference, date, reference, nominal code, net value, tax code and VAT value. |
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| Identify Invoices or Credits which have not been updated | Checks for all invoices and credits which you created through invoicing but haven't been updated yet. |
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| Identify Purchase Orders which have been delivered but not invoiced | To check for purchase orders which are in the Purchase Order Processing window but you haven't updated yet, select this check box. |
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| Identify transactions with a VAT value, where the Tax Code is not included on the VAT Return | This checks for transactions which have a tax code which isn't included on the VAT Return, therefore the values of the transaction aren't included. |
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| Check VAT values on transactions for possible errors | Select this option to check for transactions where the VAT value is more or less than you expect it to be. The transactions that appear depend on the percentages you enter. For example, you may use a settlement discount which means the VAT value is reduced on the transaction by the discount percentage. |
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| Identify sales and purchase transactions not using your most common Tax Code | Checks for sales and purchase transactions that don't use your most common tax code, that you chose from the Tax Code drop-down list. |
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| Identify journal transactions where the Tax Code is not selected as non-vatable | This checks what your non-vatable tax code is in Settings > Company Preferences > VAT and identifies all journals that don't use this code. |
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| Identify possible incorrect EC transactions | Select this to check for transactions using an EU tax code where the customer or supplier record doesn't have all the correct information. For example, the customer record may not have a VAT registration number. Note: If these transactions are incorrect, this may also affect your EC Sales List. |
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Tax codes
Sage 50 Accounts calculates VAT using tax codes. Each tax code has a rate associated with it and the VAT calculates based on this rate.
To save you time when posting transactions, you can use the default tax codes already set up in your software. To view them click Settings, click Configuration then click Tax Codes. You can edit any of these tax codes or you can add your own.
There are 100 tax codes in total, and for each one you can amend the rate and description. You can also specify if it's an Irish or EU tax code, and choose if you want to include it in your VAT Return.
For more information about creating a new tax code or amending an existing one. Read more >