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Brexit - Import tax codes for use from 1 January 2021 - UK only

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Summary

This guide explains the import tax codes to use in Sage 50cloud Accounts, from 1 January 2021.

Description

The UK's withdrawal from the EU means that all imports and exports must now be treated the same for VAT purposes, regardless of their destination or origin. Sage 50cloud Accounts v27.1 and above includes some new tax codes in the range T14 to T19, to make it easy to record EU and non-EU imports.

Resolution

 NOTE: To find out what tax codes to use when trading post Brexit, including imports and exports, please use our Which tax code should I use? - from 1 January 2021 (UK only).

For a list of all tax codes - Read more >

Tax codes

  • Once the new update is installed, the first time you open your company, the six new tax codes will be created.
  • By default, these are in the range T14 to T19 but may differ depending on the tax codes you already use.
  • These tax codes must have a supplier associated with them, therefore you can only post them using a purchase invoice, PI or purchase credit, PC. It is not possible to post them using a bank payment, BP.

View the tax codes in your software

  • Click Settings then click Configuration then click Tax Codes.
Code Description
Box affected on the VAT Return
Net
VAT
T14** Import of goods - No VAT
7
N/A
T15* Purchase of services from ROW - Reverse charge
6 and 7
1 and 4
T16* Purchase of services from ROW - No VAT
7
N/A
T17* Import of goods - Under import reverse charge threshold 7 1 and 4
T18* Import of goods - Postponed VAT***
7
1 and 4
T19* Import of goods - VAT not postponed
7
4

*introduced in Sage 50cloud Accounts v27.1

**introduced in Sage 50cloud Accounts v27.2
***find out what postings are made when you post a postponed VAT transaction. Read more >


Further information


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.

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