Summary
Use this wizard to determine the relevant VAT code to use when posting sales or purchase transactions.
Description
NOTE: This article is part of a wizard, if required, you can restart at the beginning.
Depending on the VAT treatment required, post the transaction in one of the following ways:
NOTE: If you’re unsure of the VAT treatment for a particular transaction please refer to the place of supply rules or contact HMRC.
Treated as a UK sale
Standard rated
Which VAT code to use | Use VAT code 1. |
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How this affects the VAT Return | The tax amount appears in box 1 and the net amount appears in box 6. |
Zero rated
Which VAT code to use | Use VAT code 2. |
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How this affects the VAT Return | The net amount appears in box 6. |
VAT Exempt
Which VAT code to use | Use VAT code 0. |
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How this affects the VAT Return | The net amount appears in box 6. |
The service is outside the scope of UK VAT
Which VAT code to use | Use VAT code 2 or create a new VAT code equivalent to VAT code 2. |
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How this affects the VAT Return | The net amount appears in box 6. |
This article provides general rather than specific guidance to assist all of our customers. We always do our best to make sure that the information is correct but as it's general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements. For VAT, customs and excise and duties enquiries you should call the HM Revenue and Customs (HMRC) National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided. The VAT or tax codes used in this article are based on the default or recommended codes set up in the software. These may be different in your software. |