Sage 200 - VAT code finder: Purchase - Goods - EC - VAT registration not provided - VAT charged

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

The supplier must charge VAT on the goods purchased at the country of origin rate. For example, an Irish supplier charges VAT at 21%.

Post the invoice as two separate transactions:

• Post the net element using VAT code 2.
• Post the VAT element using a non-vatable VAT code. If you have not previously done so, you will need to create a new VAT code to accomodate this.
  

  A/C	Date	N/C	Net	VAT code	VAT
  Supplier account reference	Date of the transaction	Nominal code for the purchase	Net element of the transaction	2	0.00
  Supplier account reference	Date of the transaction	Nominal code for the purchase	VAT element of the transaction	Custom	0.00

How this affects the VAT Return - The net element posted using VAT code 2 appears in box 7. The VAT element is not included in the VAT Return.