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Sage 200 Brexit - VAT rates and VAT settings for older versions of Sage 200 - UK only

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Summary

This article explains how to create the VAT codes you will need in Sage 200 post-Brexit if you import goods from the EU or the rest of the world.

Resolution

NOTE: This article refers to older versions of  Sage 200 Professional (prior to 2020 R2), for information on VAT Rates and Settings for newer versions of Sage 200 click here.

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Postponed VAT Accounting

Using Postponed VAT Accounting, import VAT due on goods arriving in the UK can be accounted for on a VAT Return rather than having to pay the VAT as soon as the goods arrive at the UK border,  Postponed VAT Accounting can apply to imports from both EU and non-EU countries and in the UK it's optional on a transaction by transaction basis. Postponed VAT Accounting is used to mitigate any adverse impacts to business cashflow, keeping the process as close as possible to the previous system.  For further information click here.

Low Value Import Scheme

Imports into Great Britain from outside the UK not exceeding £135 in value will be subject to new VAT rules. UK supply VAT rather than Import VAT will be charged at point of sale by the foreign seller. However, where the UK customer is VAT registered in the UK and provides its valid VAT registration number to the seller, the VAT will be accounted for by the customer by means of a reverse charge. Further information on the UK Low value import scheme can be found here.

Sage 200 2019 Summer through to 2020 R1 

Sage 200 default VAT rates

To create new VAT rates, open the Settings menu within Accounting System Manager and choose VAT Rates.

Code/RateDescriptionNameVAT ReturnTerms%
161,2
Services Purchases UK from ROW
Purchase Services ROW (Reverse Charge)
YesPurchase Non-Related Services20.00
181,3
Import Goods to GB from ROW
Import Goods ROW Yes

CIS Reverse Charge Purchases

20.00
191,4Import goods - UK Low value import scheme.Yes

CIS Reverse Charge Purchases

20.00
1  Customers have the flexibility to create their own codes, these are example codes but are what will be used by the latest versions of 200 cloud
2  This VAT code can be used to record a purchase of services from outside the UK, where reverse charge applies.
3  This VAT code can be used for the import of goods where Postponed VAT Accounting is applied.
4  This VAT code can be used for the import of goods where UK Low value import scheme is applied.

Boxes VAT codes affect on the VAT Return

VAT RateSale or PurchaseNet or VAT amountBox
166PurchasesNet6 and 7
VAT1 and 4
186PurchasesNet7
VAT1 and 4
196PurchasesNet7
VAT1 and 4

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


Sage 200 2019 Spring and below

For these versions it is only possible to use the Reverse Charge term on one VAT Code therefore a single VAT Code will need to be used to account for any existing reverse charge, Postponed Accounting VAT and VAT under the UK Low Value Import Scheme

Sage 200 default VAT rates

To create new VAT rates, open the Settings menu within Accounting System Manager and choose VAT Rates.

Code/RateDescriptionNameVAT ReturnTerms%
161,2
Services Purchases UK from ROW
Purchase Services ROW (Reverse Charge)
YesPurchase Non-Related Services20.00
181,3
Reverse Charge Purchases
Reverse Charge PurchasesYes

Reverse Charge Purchases 4

20.00
1  Customers have the flexibility to create their own codes, these are example codes but are what will be used by the latest versions of 200 cloud
2  This VAT code can be used to record a purchase of services from outside the UK, where reverse charge applies.
3  This VAT code can be used for the import of goods where Postponed VAT Accounting or the UK Low value import scheme is applied.
4  It is only possible to use the Reverse Charge Purchases  terms against one VAT Code, it will not be possible to create this code if these term exist on an existing code, in these circumstance the existing code will need to also be used for Postponed Accounting and transactions under the Low Value Import Scheme.

Boxes VAT codes affect on the VAT Return

VAT RateSale or PurchaseNet or VAT amountBox
166PurchasesNet6 and 7
VAT1 and 4
186PurchasesNet7
VAT1 and 4

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