Solution Properties
Solution ID:
201210124359437
Last Modified Date:
Wed Mar 13 10:28:16 UTC 2024
Taxonomy Path:
Case category//How do I...//get a tax update
Author:
[email protected]
Sage 200 2020 R2 and above - VAT rates and VAT settings
Description

NOTE: This article describes the VAT Codes and settings for UK companies, further information on the new VAT code for Postponed Accounting for companies in Republic of Ireland can be found here

Cause
Resolution
NOTE: This article refers to Sage 200 Professional 2020 R2 (and above), Sage 200 Standard and Sage for Education. For information on VAT Rate and Settings for older versions of Sage 200 click here.
NOTE:  For information on creating a new VAT Code for the UK Low Value Import Scheme, click here. 

VAT Rate settings

VAT Details

Country Code The country code of the company is specified within Accounting System Manager > Settings > Company Details. This has no default value and must be set to the relevant setting prior to beginning processing, for example, GB - Great Britain.
VAT registration no. Also found within Accounting System Manager > Settings > Company Details.

 

Sage 200 default VAT rates

To view or amend the VAT rates, open the Settings menu within Accounting System Manager and choose VAT Rates.

Code/Rate Description Name VAT Return Terms %
0 Exempt transactions Exempt Yes Not Applicable 0.00
1 Standard rated transactions Std Rate Yes Not Applicable 20.00
2 Zero rated transactions Zero Rated Yes Not Applicable 0.00
4 Zero rated sale of goods and related services to customers in the EC
EC Zero SL Yes Sales Goods & Related Services 0.00
5 Sale of non-related services to customer in the EC
EC Service Yes Sales non-Related Services 0.00
6 Purchase of non-related services from suppliers in EC
EC Service Yes Purchase Non-Related Services 0.00
7 Purchase of zero rated goods and related services from suppliers in the EC
EC Zero PL Yes Purchase Goods & Related Services (Intra EU) 0.00
8 Purchase of standard rate goods and related services from suppliers in the EC
EC Std PL Yes Purchase Goods & Related Services (Intra EU) 20.00
161,2
Services Purchases UK from ROW
Purchase Services ROW (Reverse Charge)
 Yes Purchase Non-Related Services 20.00
181,3
Import Goods to GB from ROW
Import Goods ROW 
 Yes Import Goods ROW Postponed 20.00
1  Customers have the flexibility to create their own codes, these are example codes but are what will be used by the latest versions of 200 cloud, When upgrading from a previous version if these codes are already in use a prompt will appear to create to specify new codes.
2  This VAT code can be used to record a purchase of services from outside the UK, where reverse charge applies.
3  This VAT code can be used for the import of goods where Postponed VAT Accounting is applied.
NOTE: For new databases created in 2020 R2 and above, the description of VAT Code 4 will show as 'EC Sales Goods' rather than 'Sales Goods & Related Services'.

Boxes VAT codes affect on the VAT Return

VAT Rate Sale or Purchase Net or VAT amount Box
0 Sale Net 6
VAT N/A
Purchase Net 7
VAT N/A
1 Sale Net 6
VAT 1
Purchase Net 7
VAT 4
2 Sales Net 6
VAT N/A
Purchase Net 7
VAT N/A
4 Sales Net 6 and 8
VAT N/A
5 Sales Net 6
VAT N/A
6 Purchases Net 6 and 7
VAT N/A
7 Purchases Net 2³, 7 and 9
VAT N/A
8² Purchases Net 7 and 9
VAT 2 and 4
16² Purchases Net 6 and 7
VAT 1 and 4
18² Purchases Net 7
VAT 1 and 4

²This is notional VAT. No VAT is paid or reclaimed, the same value appears in boxes 2 and 4, cancelling each other out.
³The effect on box 2 is zero but the transaction will show when drilling down into the value.

Additional VAT terms are available in the product which are not set to a VAT code by default:

Reverse Charge Sales (Mobiles)  

Reverse Charge Purchases (Mobiles)  

CIS Reverse Charge Sales  

CIS Reverse Charge Purchases  

NOTE: For further information on the use of these VAT codes click here.

 

VAT codes for popular goods and services

 CAUTION: If the goods or services you are recording do not appear in these lists or you are unsure about which VAT code to use, please contact HMRC.

Exempt Goods and Services - Rate 0
  • Some land and building sales.
  • Some finance charges.
  • Education and some training.
  • Health.
  • Betting and gaming.
  • Burials and cremation.
  • Postal services.
  • Insurance.
Zero rated goods and services - Rate 2
  • Most foods.
  • Children's clothing.
  • Books, newspapers.
  • Construction of new housing.
  • Passenger transport.
  • Medicines on prescription.
Non-vatable Items (no rate set up by default)
  • Wages.
  • Bank or cash transfers.
  • PAYE and NI contributions.
  • Capital.
  • Loans, dividends and gifts of money.
Create or amend a VAT rate
  1. Open the Settings menu in Accounting System Manager, choose VAT Rates.
  2. In the ASM - VAT Rate Details window, click Add. A blank line appears, ready to populate.
  3. Complete the new line as follows:
    Code

    Enter the required number that will be used for selection throughout the program for this rate, e.g. 9..
    Name

    Enter a description to identify the VAT rate.
    VAT return To include transactions with this VAT rate in the VAT Return, select this check box.
    Reverse Charge Choose the category description that applies to the new rate.

    NOTE: Reverse charge categories should only be used for the sale or purchase of items that fall under the remit of carousel fraud, for example, mobile phones. It must not be used for standard reverse charge transactions.
    % The default rate of VAT that applies to this rate.
    Input Acc. No. Specify the default nominal code used for input VAT transactions with this rate.
    Output Acc. No. Specify the default nominal code used for output VAT transactions with this rate.

  4. To save the settings click OK.

If you're using one of the Flat Rate schemes, the gross amount appears in box 6. Box 1 includes the gross amount x flat rate percentage.

 

[BCB:44:Accounts VAT disclaimer:ECB]

 

[BCB:19:UK - Sales message :ECB]



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