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Tax code finder

Created on  | Last modified on 

Summary

Use this wizard to determine the relevant tax code to use when posting sales or purchase transactions in Sage 50 Accounts.

Resolution

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

NOTE: For more detailed steps on how to post import VAT and duty on goods purchased from a country outside the UK. Including postings when not initially in receipt of a C79 form. Read more >

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Net and import VAT

To record this, post a purchase invoices as follows:

Type Net T/C VAT
Purchase invoice Goods amount T19 - Import of goods - VAT not postponed VAT amount
Which tax code to use

Use tax code T19 - Import of goods - VAT not postponed.

This tax code must have a supplier associated, therefore you can only post using a purchase invoice, PI or purchase credit, PC. It is not possible to post using a bank payment, BP.

 NOTE: By default, this tax code is created automatically as T19 but may differ depending on the tax codes you already have.
How this affects the VAT Return A VAT element appears in box 4. The net element appears in box 7.

Net only

In Sage 50 Accounts v27.2 and above a new tax code, T14, has been created to post import of goods with no VAT.


To record this, post a purchase invoices as follows:

Type Net T/C VAT
Purchase invoice Goods amount T14 - Import of goods - No VAT Zero
Which tax code to use

Use tax code T14 - Import of goods - No VAT.

This tax code must have a supplier associated, therefore you can only post using a purchase invoice, PI or purchase credit, PC. It is not possible to post using a bank payment, BP.

 NOTE: We have suggested T14 but this may differ depending on the tax codes you already have.
How this affects the VAT Return The net element appears in box 7.

Import VAT only

To record this, post a purchase invoices as follows:

Type Net T/C VAT
Purchase invoice Zero T19 - Import of goods - VAT not postponed VAT amount
Which tax code to use

Use tax code T19 - Import of goods - VAT not postponed. Leaving the Net amount as zero and enter the VAT amount only.

This tax code must have a supplier associated, therefore you can only post using a purchase invoice, PI or purchase credit, PC. It is not possible to post using a bank payment, BP.

NOTE: By default, this tax code is created automatically as T19 but may differ depending on the tax codes you already have.
How this affects the VAT Return A VAT element appears in box 4.

 

 

 

 

 

This article offers general guidance only. While accurate at the time of publication, it may not suit your specific needs. We make no express or implied warranties. For tailored advice, consult a professional. For VAT, customs, or duties queries, contact HMRC on 0300 200 3700 or visit www.hmrc.gov.uk. We accept no liability for any loss from using this content. VAT or tax codes shown reflect default software settings and may differ in your setup.