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Sage 200 - VAT rates and VAT settings - Sage 200 Professional 2020 R1 and below

Created on  | Last modified on 

Summary

This article explains how each of the tax rate settings affect transactions in Sage 200. It also explains what the default tax rates are and when you should use them.

Resolution

NOTE:

This article relates to Sage 200 Professional 2020 R1 and below. For information on VAT Rates and Settings for Sage 200 Professional R2, Sage 200 Standard and Sage for Education click here.

NOTE:

If you import or export goods or serice you will need to create new codes to enable you continue to process correctly, for further information click here.

NOTE:

If you need to change the default VAT codes for Customers and Suppliers you need this article.

VAT Rate settings

VAT Details

Country Code The country code of the company is specified within Accounting System Manager > Settings > Company Details. This has no default value and must be set to the relevant setting prior to beginning processing, for example, GB - Great Britain.
VAT registration no.

Also found within Accounting System Manager > Settings > Company Details.

 

Sage 200 default VAT rates

To view or amend the VAT rates, open the Settings menu within Accounting System Manager and choose VAT Rates.

Rate  
0
Exempt transactions.
1
Standard rated transactions
2
Zero rated transactions.
4
Zero rated sale of goods and related services to customers in the EC.
5
Sale of non-related services to customer in the EC.
6
Purchase of non-related services from suppliers in EC.
7
Purchase of zero rated goods and related services from suppliers in the EC.
8
Purchase of standard rate goods and related services from suppliers in the EC.
Boxes VAT codes affect on the VAT Return
VAT Rate Sale or Purchase Net or VAT amount Box
0 Sale Net 6
VAT N/A
Purchase Net 7
VAT N/A
1 Sale Net 6
VAT 1
Purchase Net 7
VAT 4
2 Sales Net 6
VAT N/A
Purchase Net 7
VAT N/A
4 Sales Net 6 and 8
VAT N/A
5 Sales Net 6
VAT N/A
6 Purchases Net 6 and 7
VAT N/A
7 Purchases Net 7 and 9
VAT N/A
8 Purchases Net 7 and 9
VAT 2 and 4

TIP:

This is notional VAT. No VAT is paid or reclaimed, the same value appears in boxes 2 and 4, cancelling each other out.

VAT codes for popular goods and services

CAUTION:

If the goods or services you are recording do not appear in these lists or you are unsure about which VAT code to use, please contact HMRC.

Exempt Goods and Services - Rate 0
  • Some land and building sales.
  • Some finance charges.
  • Education and some training.
  • Health.
  • Betting and gaming.
  • Burials and cremation.
  • Postal services.
  • Insurance.
Zero rated goods and services - Rate 2
  • Most foods.
  • Children's clothing.
  • Books, newspapers.
  • Construction of new housing.
  • Passenger transport.
  • Medicines on prescription.
Non-vatable Items (no rate set up by default)
  • Wages.
  • Bank or cash transfers.
  • PAYE and NI contributions.
  • Capital.
  • Loans, dividends and gifts of money.
Create or amend a VAT rate
  1. Open the Settings menu in Accounting System Manager, choose VAT Rates.
  2. In the ASM - VAT Rate Details window, click Add. A blank line appears, ready to populate.
  3. Complete the new line as follows:

     

    Code

    Enter the required number that will be used for selection throughout the program for this rate, e.g. 9..
    Name

    Enter a description to identify the VAT rate.
    VAT return To include transactions with this VAT rate in the VAT Return, select this check box.
    Reverse Charge Choose the category description that applies to the new rate. Note: Reverse charge categories should only be used for the sale or purchase of items that fall under the remit of carousel fraud, for example, mobile phones. It must not be used for standard reverse charge transactions.
    % The default rate of VAT that applies to this rate.
    Input Acc. No. Specify the default nominal code used for input VAT transactions with this rate.
    Output Acc. No.

    Specify the default nominal code used for output VAT transactions with this rate.

To save the settings click OK.

 

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