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Sage 200 Brexit - Record import and export transactions - England, Scotland and Wales only

Created on  | Last modified on 

Summary

After the 1 January 2021, if you are based in Great Britain (England, Scotland and Wales), some new rules apply when trading with companies in the EU or the Rest of the World. The information in this article is provided for general guidance in Sage 200 only, consult your accountant or the HMRC if you require further guidance on the correct VAT treatment.

Description

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NOTE: The new VAT Codes listed in this article are the default numbers that will be automatically created in Sage 200cloud Professional 2020 R2 (and above), Sage 200cloud Standard, Sage for Education and Sage 200 Extra Online Update (2016 SP4) - further information can be found here. For information on creating these VAT Codes for older versions of Sage 200 click here. 

NOTE: The information in this article is provided for guidance only, it is important that you use the correct VAT treatment depending upon your specific circumstances.

 

Table of Contents

Key

Abbreviation Description
ROI Republic of Ireland
UK  United Kingdom
GB  Great Britain (England, Scotland and Wales)
NI Northern Ireland
EU European Union
ROW Rest of World

Trading goods with the EU/ROW

Goods – Imports  

From  

To  

Business / Customer

Goods / Services  

UK VAT Treatment  

Sage 200  

Rate

EU / ROW 

GB

Business

Goods  over the UK Low Value Import Scheme.

VAT has been postponed

New VAT code 181,2

Boxes 1, 4 & 7

20%

VAT has not been postponed (Import VAT paid at customs)  

VAT Code 13

Boxes 4 & 7 

20%

Goods  under the UK Low Value Import Scheme.

Reverse charge 

New VAT code 191,4,5 

Boxes 1, 4 & 7  

20%
1 - In versions prior to Sage 200cloud Professional 2019 Summer Enhancements, it is only possible to use the necessary 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. For further information click here
2 -If you have opted into Postponed VAT Accounting with the HMRC, the new VAT code should be applied to the goods on the purchase invoice from your supplier. This will apply notional VAT which simulates both the VAT that would have been paid at customs (via your shipping agent or courier if Postponed VAT Accounting was not in effect) and later VAT reclaim.
3 - This is the code that would be used for the VAT element of the import, goods would generally be zero-rated, using VAT code 2.  
4 - This VAT Code needs to be manually created, for further information on this click here
5 - If you are processing under the Low Value Import Scheme, the new VAT code should be applied to the goods on the purchase invoice from your supplier. This will apply notional VAT which simulates both the VAT that would have been paid at customs (via your shipping agent or courier if the Low Value Import Scheme was not in effect) and later VAT reclaim.
Further Information on processing import VAT can be found here. 
Further information on postponed accounting can be found here.

Services – Purchase  

 

From  

To  

Business / Customer

Goods / Services  

UK VAT Treatment  

Sage 200  

Rate

EU / ROW

GB  

Business

Services

Reverse charge 

New VAT code 16

Boxes 1, 4, 6 & 7

20%

Goods – Exports 

From  

To  

Business / Customer

Goods / Services  

UK VAT Treatment  

Sage 200  

Rate

GB

EU / ROW  

Both

Goods

Zero Rated

VAT code 2

Box 6

0%

Services – Sale 

From  

To  

Business / Customer

Goods / Services  

UK VAT Treatment  

Sage 200  

Rate

GB

EU / ROW  

Business

Services

Zero Rated

VAT code 2

Box 6

0%

Customer

Services

UK VAT charged by seller  

VAT Code 1

Boxes 1 & 6

20%

Trading goods with the Northern Ireland

 

Our current understanding is that GB/NI transactions will continue to be treated as domestic sales and purchases from a VAT perspective.

 

This article provides general rather than specific guidance to assist all of our customers, including both in the United Kingdom and Republic of Ireland. 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 for our general customer base 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 contact The Revenue. 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.