1.Enter your VAT registration information

1. On the menu bar click Settings, click Company Preferences.
2. If prompted, enter your password, then click VAT.
3. Under VAT Details, enter the following information:
   
   

   VAT Reg	Enter your VAT registration number from HMRC.
   Non-Vatable Tax Code	This shows the tax code for transactions that don't involve VAT. We recommend you leave this as T9.
   VAT Scheme	Click the VAT scheme you're registered for. If your scheme isn't listed, for further information search our help centre.
   Validate VAT Number	If you want Sage 50 Accounts to check the validity of any VAT registration numbers you enter, select this check box.

   
   
   
4. If you need to produce EC sales lists for HMRC, complete the EC Sales details.
5. If you want to submit your VAT Returns to HMRC directly from Sage Accounts, complete the eSubmissions details.
6. Click OK.

2. Check your tax codes

We recommend you use the default tax code settings, although you can amend them if required. To view your tax codes:

• Click Settings then click Configuration and click Tax Codes.

3. Update your default tax codes

The default tax codes determine what tax code is used when setting up a new customer, supplier or product. To set this:

1. Click Settings then click Customer Defaults, Supplier Defaults or Product Defaults as required.
2. Click the Std Tax Code or Tax Code drop-down and click the required tax code, normally T1.
3. Click OK.

4. Update your customer, supplier and product records

As you enter a transaction, the tax code comes from the relevant customer, supplier or product record. You can change the tax code on each transaction, but it saves you time if your records have the correct settings.

1. Click Customers or Suppliers, double-click the relevant record, then click Defaults.
2. In the Default Tax Code drop-down, click the tax code that should apply to this customer or supplier most often. Read more >
3. If this tax code will always apply for this record regardless of what's bought or sold, click the Use Default Tax Code for Sales/Purchases check box.
4. Click Save, then click Close.
5. Repeat steps 1 to 4 for each customer and supplier.
6. On the navigation bar click Products and services, then double-click the relevant record.
7. In the Tax Code drop-down, click the tax code for this product, click Save then click Close.
8. Repeat steps 6 and 7 for each product.

TIP: If you use Sage 50 Accounts Standard or Professional, you can change your default tax codes for multiple records, you can using the batch change option. This option isn't available in Sage 50 Accounts Essentials.

Finally, if you have any recurring bank entries, invoices or orders, or memorised invoices, orders or transactions, you should check the tax codes and update if required.