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Sage 200 Brexit - UK Low Value Import Scheme

Created on  | Last modified on 

Summary

This article explains the United Kingdoms Low Value Import Scheme and how to create a new tax code to process transactions which full under this scheme.

Resolution

NOTE: This article refers to Sage 200 Professional 2020 R2 (and above), Sage 200 Standard, Sage for Education and Sage 200 Extra Online Update (2016 SP4), for information on VAT Rate and Settings for older versions of Sage 200 click here 

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.

New Tax Code

The following VAT Code will need to be created in order to process transactions which fall under this scheme.

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

Workaround Code 

Description 

Rate 

Existing Sage 200 Code/ Term based on  

*19 

Import goods - UK Low value import scheme.

20% 

18 - Import Goods ROW - Postponed VAT 

NOTE: For older versions of Sage 200 the Existing Code/Term based on will be either 'Reverse Charge' / 'Reverse Charge Purchases (Mobiles)' - depending on version in use. 

Boxes VAT codes affect on the VAT Return

VAT Rate

Sale or Purchase

Net or VAT amount

Box

19

Purchases

Net

7

VAT

1 & 4