In Sage 50 Accounts the postponed accounting tax codes are T39 - T50 by default, unless you've configured your own code.

NOTE: The postponed tax codes are only available in Sage 50 Accounts, to find out more, leave your details and we'll be in touch.

Using postponed accounting, import VAT due on goods arriving in Ireland from outside the EC can be accounted for on a VAT Return rather than having to pay the VAT as soon as the goods arrive at the Irish border.

TIP: For more information on other new import tax codes for use in v27.1 and above after 1 January 2021 when buying from the UK - Read more >

Posting a supplier invoice with postponed VAT

• A VAT only credit note is automatically posted to postponed accounting tax code, for example T39, for the VAT value reducing the outstanding value of the invoice.
• The credit note is allocated to the invoice automatically.
• The VAT due for the purchase is added to boxes T1 and T2 of the VAT Return, so the net effect is that no VAT is due.
• The credit note does not impact the VAT Return it's there to correct the supplier balance.
• The net value of the purchase is added to the PA1 and 'Total value of purchases excluding VAT' boxes.

Posting a supplier credit with postponed VAT

• A VAT only invoice is automatically posted to postponed accounting tax code, for example T39, for the VAT value reducing the outstanding value of the credit.
• The invoice is allocated to the credit note automatically.
• The VAT value for the credit reduces the value of boxes T1 and T2 of the VAT Return.
• The VAT on the VAT only invoice will not impact the VAT Return, it's purpose is to keep the supplier balance correct.
• The net value of the credit is subtracted from the PA1 and 'Total value of purchases excluding VAT' boxes.

TIP: For a full list of default tax codes in Sage 50 accounts v27.1 and above - Read more >