UK VAT settings

Summary

The VAT settings and how to check them in Sage 50 Accounts.

Description

View your VAT settings

Click Settings then click Company Preferences.
Enter your password then click OK.
Click the VAT tab.

The available options are as follows:

▼ VAT Details

VAT Reg	This is your VAT Registration Number.
Non-Vatable Tax Code	This is the tax code to use for transactions that don't involve VAT, T9 by default. Transactions using this tax code aren't on your VAT Return. TIP: If you use a different tax code for this, make sure it's not included on the VAT Return.
VAT Scheme	This is the VAT scheme that your company uses.
Flat Rate	If you've selected a Flat Rate VAT scheme, enter the VAT rate percentage HMRC advised you to use.
Item VAT Amendable	When you enter an invoice, credit or order, the VAT amounts calculate automatically based on the net amounts and the tax codes. Enable manually changing the VAT amount, using this check box.
Validate VAT Number	To check the validity of any VAT Registration Numbers you enter, select this check box.
Enable Making Tax Digital for VAT submissions	To submit your VAT Return under Making Tax Digital (MTD), select this box.

▼ EC Sales

Error Threshold	You can use this drop-down list to set the error tolerance for an ECSL submission to 30% or 0.00%. NOTE: HMRC recommends a 30% threshold. HMRC can reject the submission when any error presents if the value is zero.
Branch Identifier	Enter the three-digit number, representing the EC sales list branch identifier. By default, this number is 000. HMRC can provide this.
Branch Postcode	Enter the EC sales list branch postcode you registered with HMRC.

Error Threshold

You can use this drop-down list to set the error tolerance for an ECSL submission to 30% or 0.00%.

NOTE: HMRC recommends a 30% threshold. HMRC can reject the submission when any error presents if the value is zero.

Branch Identifier

Enter the three-digit number, representing the EC sales list branch identifier. By default, this number is 000. HMRC can provide this.

Branch Postcode

Enter the EC sales list branch postcode you registered with HMRC.

▼ eSubmissions Credentials

If you submit an EC sales list, you need to enter these details.

NOTE: If you submit your VAT Return using Making Tax Digital (MTD), you don't need to enter any eSubmission credentials or contact details.

User ID	Enter your User ID in this box, defined as your Government Gateway Account Username when you set up your account.
Password	Type your password in this box, defined as your Government Gateway Account password when you set up your account.
Confirm Password	Retype your password in this box, defined as your Government Gateway Account password when you set up your account.

▼ eSubmissions Contact Details

Forenames	Enter your first or given names in this box, as defined when you set up your Government Gateway account.
Surnames	Enter your last or family name in this box, as defined when you set up your Government Gateway account.
Telephone	Enter your contact telephone number in this box, as defined when you set up your Government Gateway account.
Email	Enter your contact email address in this box, as defined when you set up your Government Gateway account.

▼ EC VAT Descriptions

Northern Ireland only

If you sell goods in an EC member state, use this option to amend the descriptions shown when you use an EC tax code.

TIP: This helps the EC customer to account correctly for the notional VAT on their VAT Return.

▼ HMRC Payments

If you use Sage EBanking to pay your VAT liability to HMRC, you need these details to make an online payment.

TIP: Occasionally, HMRC changes their bank account details. You can update the details here.

▼ Verification Settings

When you calculate the VAT Return, you can run extra checks to ensure your VAT Return is correct before you submit to HMRC. You can select the checks you want to run.

Duplicate entries
Identify possible duplicate transactions	This checks for transactions with a matching account reference, date, reference, nominal code, net value, tax code and VAT value.
Missing entries
Identify Invoices or Credits which haven’t been updated	This checks for all invoices and credits which you've created through the Invoicing window but haven't updated yet.
Identify Purchase Orders delivered but not invoiced	Select this to check for purchase orders which are in the Purchase Order Processing window but haven't updated yet.
Identify transactions with a VAT value where the Tax Code isn’t on the VAT Return	This checks for transactions which have a Tax Code which isn't on the VAT Return.
Other potential issues
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. TIP: Transactions that appear depend on which percentages you enter.
Identify sales and purchase transactions not using your most common Tax Code	This checks for transactions that don't use your most commonly used tax code.
Identify journal transactions where the Tax Code isn’t non-vatable	This checks what your non-vatable tax code is in within your company preferences and identifies all journals that don't use this tax code.
Identify possible incorrect EC transactions	To check for incorrect transactions using an EC tax code, select this check box. For example, the customer record may not have a VAT Registration Number. TIP: If these transactions are incorrect, this can also affect your EC Sales List.

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