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

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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.

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/CDateN/CNetVAT codeVAT
    Supplier account referenceDate of the transactionNominal code for the purchaseNet element of the transaction20.00
    Supplier account referenceDate of the transactionNominal code for the purchaseVAT element of the transactionCustom0.00

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.

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.