Sage 200 - VAT code finder

Summary

Use this wizard to determine the relevant VAT code to use when posting sales or purchase transactions.

Resolution

NOTE: This article is part of a wizard, if required, you can restart at the beginning.

There are a number of complexities in relation to VAT and the purchase of services. Because of this, please contact HMRC National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk to establish the VAT liability of the supply.

Depending upon the response provided by HMRC, the transaction would be posted in one of the following ways:

Treated as a UK purchase - Standard rated

Which VAT code to use	Use VAT code 1.
How this affects the VAT Return	The tax amount appears in box 4 and the net amount appears in box 7.

The service is outside the scope of UK VAT

Which VAT code to use	There is no non-vatable VAT code set up by default. You should create a new VAT code within the Tax Rates window of the Settings menu within Accounting System Manager. NOTE: As transactions in this category should not appear on the VAT return, you must ensure the 'VAT Return' box is not ticked.
How this affects the VAT Return	This doesn't affect the VAT Return.

Which VAT code to use

There is no non-vatable VAT code set up by default. You should create a new VAT code within the Tax Rates window of the Settings menu within Accounting System Manager.

NOTE: As transactions in this category should not appear on the VAT return, you must ensure the 'VAT Return' box is not ticked.

How this affects the VAT Return

This doesn't affect the VAT Return.

The supplier isn't VAT registered

Which VAT code to use	Use VAT code 2.
How this affects the VAT Return	The net element appears in box 7.

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.

Sage 200 - VAT code finder

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