How to setup and record transactions for a company that's not VAT registered

Summary

Although there isn't a specific setting to configure Sage 50 Accounts for a company that isn't VAT registered, you can amend the defaults to ensure that VAT isn't applied to any transactions.

Description

If you're just setting up your company in Sage 50 Accounts we recommend that you set the company up on the standard VAT scheme. This makes certain options more flexible, for example the Corrections options, and you won't be prompted to specify a tax code when entering payments on account.

Once the steps in this article are complete, the non-vatable tax code, T9, is used on all new transactions.

Resolution

Setting up a new company

When setting up a new company in the Company Setup wizard:

  1. In the Select VAT Details section, for Is your company VAT registered? click No. This ensures all your default tax codes are set to T9.
  2. Then, for Enter your standard VAT rate enter the current standard rate specified by your tax authority. For example, 20.00%.

The standard VAT rate is entered here for reference only. If, in the future, you register for VAT, this is the rate that will be used.

To enter your transactions, if there's VAT on the transaction, we recommend you enter the full gross value in the Net column.

If you're not setting up your company for the first time, please follow the steps below.

Check the non-vatable tax code

Before you enter any transactions we recommend that your non-vatable tax code is set to T9.

  • On the menu bar click Settings and click Company Preferences then click the VAT tab then ensure the Non-Vatable Tax Code is T9 and click OK.
Amending your defaults
Customer DefaultsOn the menu bar click Settings and click Customer Defaults then set Std Tax Code to T9 and click OK.
Supplier DefaultsOn the menu bar click Settings and click Supplier Defaults then set Std Tax Code to T9 and click OK.
Product DefaultsOn the menu bar click Settings and click Product Defaults then set Tax code to T9 and click OK.

Amending your existing records

Customer
  1. Click Customers, then on the toolbar click Clear then click Swap.
  2. On the toolbar click Batch changes, or on the New/edit drop-down list, click Batch changes.
  3. Click the Defaults tab and change the Default Tax Code to T9 then click Save and click Yes.
Supplier
  1. Click Suppliers, then on the toolbar click Clear then click Swap.
  2. On the toolbar click Batch changes, or on the New/edit drop-down list, click Batch changes.
  3. Click the Defaults tab and change the Default Tax Code to T9 then click Save and click Yes.
Product
  1. Click Products and services, then on the toolbar click Clear then click Swap.
  2. On the toolbar click Batch changes, or on the New/edit drop-down list, click Batch changes.
  3. Change the Tax Code to T9 then click Save and click Yes.

You can also change the records by using File Import.

Entering your transactions

When you enter your transactions if there's VAT on the transaction we recommend you enter the full gross value in the Net column.

Watch the video


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Solution Properties

Solution ID
200427112233002
Last Modified Date
Wed Mar 23 14:24:35 UTC 2022
Attributes
Product Details
Modules: Tax
Modules: VAT
Views
0