Tax codes in Sage Accounts v27.0 and below

Solution Properties

Solution ID:

201222125911263

Last Modified Date:

Wed Mar 23 14:30:39 UTC 2022

Taxonomy Path:

Case category//How do I...//governmental/legislative compliance

Author:

[email protected]

Tax codes in Sage Accounts v27.0 and below - Ireland only

Description

Sage 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. 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.

Before you proceed any further, check that your computer's regional settings is set to Ireland and not UK. Read more >

NOTE: This article relates to Sage 50 Accounts and Sage 50 accounts v27.0 and below, for details of tax codes in Sage 50 Accounts v27.1 and above, read more >

Cause

Resolution

[BCB:18:Wizard code:ECB]

Sage default tax codes

If you've installed the September 2016 Improvements for Sage 50 Accounts, the following additional tax codes are set up by default:
T0	Zero rated sales and purchase of goods for resale	View screenshotnull;null;ssT0
T1	Standard rated sales and purchase of goods for resale - currently 23%	View screenshotnull;null;ssT1
T2	Exempt sales and purchase of goods for resale	View screenshotnull;null;ssT2
T3	Reduced rate sales and purchase of goods for resale - currently 13.5%	View screenshotnull;null;ssT3
T4	Sales of goods to VAT registered customers in EC	View screenshotnull;null;ssT4
T5	Exempt import of goods from suppliers in EC	View screenshotnull;null;ssT5
T6	Exempt import of goods from suppliers outside EC	View screenshotnull;null;ssT6
T7	Zero rated purchases of goods from suppliers in EC	View screenshotnull;null;ssT7
T8	Standard rated purchases of goods from suppliers in EC	View screenshotnull;null;ssT8
T9	Non-Vatable Tax Code If you post any transactions with this tax code, they don't appear on your VAT Return.	View screenshotnull;null;ssT9
T10	Zero rated purchase of goods for non-resale	View screenshotnull;null;ssT10
T11	Standard rated purchase of goods for non-resale	View screenshotnull;null;ssT11
T12	Exempt purchase of goods for non-resale	View screenshotnull;null;ssT12
T13	Reduced rated purchase of goods for non-resale	View screenshotnull;null;ssT13
T14	Zero rated export of goods to customers outside EC	View screenshotnull;null;ssT14
T15	Exempt import of goods from suppliers in EC	View screenshotnull;null;ssT15
T16	Exempt import of goods from suppliers outside EC	View screenshotnull;null;ssT16
T17	Zero rated purchases of goods from suppliers in EC	View screenshotnull;null;ssT17
T18	Standard rated purchases of goods from suppliers in EC	View screenshotnull;null;ssT18
T19	Zero rated purchases of goods from suppliers outside EC	View screenshotnull;null;ssT19
T20	EU reverse charge	View screenshotnull;null;ssT20
T21	Zero rated purchases of goods from suppliers outside EC	View screenshotnull;null;ssT21
T22	Sales of services to VAT registered customers in EC	View screenshotnull;null;ssT22
T23	Zero rated purchases of services from suppliers in EC	View screenshotnull;null;ssT23
T24	Standard rated purchases of services from suppliers in EC	View screenshotnull;null;ssT24
T25	Reduced rated purchases of goods from suppliers in EC	View screenshotnull;null;ssT25
T26	Reduced rated purchases of goods from suppliers in EC	View screenshotnull;null;ssT26
T27	Second reduced rate sales/purchase of goods for resale	View screenshotnull;null;ssT27
T28	Second reduced rate sales/purchase of goods for non-resale	View screenshotnull;null;ssT28
T29	Second reduced rated purchases of goods from EC suppliers	View screenshotnull;null;ssT29
T30	Second reduced rated purchases of goods from EC suppliers	View screenshotnull;null;ssT30
T31	Livestock rate sales and purchase of goods for resale	View screenshotnull;null;ssT31
T32	Livestock rate sales and purchase of goods for non-resale	View screenshotnull;null;ssT32
T33	Livestock rated purchases of goods from EC suppliers	View screenshotnull;null;ssT33
T34	Livestock rated purchases of goods from EC suppliers	View screenshotnull;null;ssT34
T35	Flat rate compensation sales/purchase of goods for resale	View screenshotnull;null;ssT35
T36	Flat rate compensation sales/purchase of goods non-resale	View screenshotnull;null;ssT36
T37	Flat rate compensation purchases of goods from EC suppliers	View screenshotnull;null;ssT37
T38	Flat rate compensation purchases of goods from EC suppliers	View screenshotnull;null;ssT38

Which boxes the tax codes affect on the VAT Return

Tax code T23 appears correctly on the VAT Return, however we're currently investigating an issue where T23 transactions appear in the wrong box on the Return of Trading Details (RTD). Read more >

You can find out more about each box on your VAT Return by visiting the Revenue website.

Tax Code	Sale or Purchase	Net or VAT amount	Box
T0	Sale	Net	Appears in Total value of sales, excluding VAT box
	Sale	VAT	N/A
	Purchase	Net	Appears in Total value of purchases, excluding VAT box
	Purchase	VAT	N/A
T1	Sale	Net	Appears in Total value of sales, excluding VAT box
	Sale	VAT	Appears in box T1 and VAT charged on supplies of Goods and Services box
	Purchase	Net	Appears in Total value of purchases, excluding VAT box
	Purchase	VAT	Appears in box T2
T2	Sales	Net	Appears in Total value of sales, excluding VAT box
	Sales	VAT	N/A
	Purchase	Net	Appears in Total value of purchases, excluding VAT box
	Purchase	VAT	N/A
T3	Sales	Net	Appears in Total value of sales, excluding VAT box
	Sales	VAT	Appears in box T1 and VAT charged on supplies of Goods and Services box
	Purchase	Net	Appears in Total value of purchases, excluding VAT box
	Purchase	VAT	Appears in box T2
T4	Sales	Net	Appears in box E1 and Total value of sales, excluding VAT box
T4	Sales	VAT	N/A
T5	Purchases	Net	Appears in box E2 and Total value of purchases, excluding VAT box
T5	Purchases	VAT	N/A
T6	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T6	Purchases	VAT	N/A
T7	Purchases	Net	Appears in box E2 and Total value of purchases, excluding VAT box
T7	Purchases	VAT	N/A
T8	Purchases	Net	Appears in box E2 and Total value of purchases, excluding VAT box
T8	Purchases	VAT	Appears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T9	Non-vatable tax code, doesn't appear on VAT return.
T10	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T10	Purchases	VAT	N/A
T11	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T11	Purchases	VAT	Appears in box T2
T12	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T12	Purchases	VAT	N/A
T13	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T13	Purchases	VAT	Appears in box T2
T14	Sales	Net	Appears in Total value of sales, excluding VAT box
T14	Sales	VAT	N/A
T15	Purchases	Net	Appears in box E2 and Total value of purchases, excluding VAT box
T15	Purchases	VAT	N/A
T16	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T16	Purchases	VAT	N/A
T17	Purchases	Net	Appears in box E2 and Total value of purchases, excluding VAT box
T17	Purchases	VAT	N/A
T18	Purchases	Net	Appears in box E2 and Total value of purchases, excluding VAT box
T18	Purchases	VAT	Appears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T19	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T19	Purchases	VAT	N/A
T20	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T20	Purchases	VAT	Appears in boxes T1 and T2 and VAT charged on supplies of Goods & Services box
T21	Purchases	Net	Appears in Total value of purchases, excluding VAT box
T21	Purchases	VAT	N/A
T22	Sales	Net	Appears in box ES1 and Total value of sales, excluding VAT
T22	Sales	VAT	N/A
T23	Purchases	Net	Appears in box ES2 and Total value of purchases, excluding VAT NOTE: Due to a software issue, the net value also appears in the Total value of sales, excluding VAT box. This box is for information only and no action is needed to amend this.
T23	Purchases	VAT	N/A
T24	Purchases	Net	Appears in box ES2 and Total value of purchases, excluding VAT NOTE: Due to a software issue, the net value also appears in the Total value of sales, excluding VAT box. This box is for information only and no action is needed to amend this.
T24	Purchases	VAT	Appears in boxes T1 and T2. NOTE: Due to a software issue, the VAT value incorrectly appears in the VAT charged on supplies of Goods & Services box instead of the VAT due on intra-EU acquisitions box. These boxes are for information only and no action is needed to amend this.
T25	Purchases	Net	Appears in box E2 and Total value of purchases, excluding VAT box
T25	Purchases	VAT	Appears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T26	Purchases	Net	Appears in box E2 and Total value of purchases, excluding VAT box
T26	Purchases	VAT	Appears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T27	Sales	Net	Appears in Total value of sales, excluding VAT box
	Sales	VAT	Appears in box T1 and VAT charged on supplies of Goods and Services box
	Purchases	Net	Appears in Total value of purchases, excluding VAT box
	Purchases	VAT	Appears in box T2
T28	Sales	Net	Appears in Total value of sales, excluding VAT box
	Sales	VAT	Appears in box T1 and VAT charged on supplies of Goods and Services box
	Purchases	Net	Appears in Total value of purchases, excluding VAT box
	Purchases	VAT	Appears in box T2
T29	Purchases	Net	Appears in box ES2 and Total value of purchases, excluding VAT
T29	Purchases	VAT	Appears in boxes T2 and VAT due on intra-EU acquisitions
T30	Purchases	Net	Appears in box ES2 and Total value of purchases, excluding VAT
T30	Purchases	VAT	Appears in boxes T2 and VAT due on intra-EU acquisitions
T31	Sales	Net	Appears in Total value of sales, excluding VAT box
	Sales	VAT	Appears in box T1 and VAT charged on supplies of Goods and Services box
	Purchases	Net	Appears in Total value of purchases, excluding VAT box
	Purchases	VAT	Appears in box T2
T32	Sales	Net	Appears in Total value of sales, excluding VAT box
	Sales	VAT	Appears in box T1 and VAT charged on supplies of Goods and Services box
	Purchases	Net	Appears in Total value of purchases, excluding VAT box
	Purchases	VAT	Appears in box T2
T33	Purchases	Net	Appears in box ES2 and Total value of purchases, excluding VAT
T33	Purchases	VAT	Appears in boxes T2 and VAT due on intra-EU acquisitions
T34	Purchases	Net	Appears in box ES2 and Total value of purchases, excluding VAT
T34	Purchases	VAT	Appears in boxes T2 and VAT due on intra-EU acquisitions
T35	Sales	Net	Appears in Total value of sales, excluding VAT box
	Sales	VAT	Appears in box T1 and VAT charged on supplies of Goods and Services box
	Purchases	Net	Appears in Total value of purchases, excluding VAT box
	Purchases	VAT	Appears in box T2
T36	Sales	Net	Appears in Total value of sales, excluding VAT box
	Sales	VAT	Appears in box T1 and VAT charged on supplies of Goods and Services box
	Purchases	Net	Appears in Total value of purchases, excluding VAT box
	Purchases	VAT	Appears in box T2
T37	Purchases	Net	Appears in box ES2 and Total value of purchases, excluding VAT
T37	Purchases	VAT	Appears in boxes T2 and VAT due on intra-EU acquisitions
T38	Purchases	Net	Appears in box ES2 and Total value of purchases, excluding VAT
T38	Purchases	VAT	Appears in boxes T2 and VAT due on intra-EU acquisitions

Popular goods and services and the tax codes to use

T0	Zero rated goods and services.	Most foods. Children's clothing. Books and newspapers. Construction of new housing. Passenger transport. Medicines on prescription.
T2	Exempt goods and services.	Some land and building sales. Some finance charges. Education and some training. Health. Betting and gaming. Burials and cremation. Postal services. Insurance.
T9	Non-vatable items.	Wages. Bank or cash transfers. Capital. Loans, dividends and gifts of money.

To create or amend a tax code

Click Settings, click Configuration, then click Tax Codes.
Select the required tax code then click Edit.

Complete the Edit Tax Code window as follows:

Rate	Enter the required percentage. For example, to set up a 23% VAT rate, enter 23.00. If you select the Enable EC Code check box, the Rate box isn't active.
Include in VAT return	To include transactions with this tax code on the VAT Return, select this check box.
Reverse Charge	To flag sale or purchase items that fall under the remit of carousel fraud, for example, mobile phones, select this check box. Don't select this for standard reverse charge transactions.
Resale	To flag transactions involving purchases for resale, select this check box.
Outside EC or Non EC Transactions	To flag transactions that occur outside EU territories, select this check box.
Enable EC Code or EC code	If this is an EU tax code, select this check box. Then choose the relevant options from the drop-down lists.
Link To	This option is only available for EU purchase tax codes. If you want to use this tax code to record notional VAT, choose the required tax code that you want to link to. Notional VAT calculates based on the rate of the code you link to.
Rate	For RTD reporting purposes, select the relevant option.
Description	Enter a description for the tax code.

Click OK, then click Apply.
click Close and if you're prompted to save the changes, click Yes.

Steps to duplicate