Sage 200 - VAT code finder

Summary

Use this wizard to determine the relevant VAT code to use when posting sales or purchase transactions.

Resolution

NOTE: This article is part of a wizard, if required, you can restart at the beginning.

There are a number of complexities in relation to VAT and the purchase of services. Because of this, please contact HMRC National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk to establish the VAT liability of the supply.

Depending upon the response provided by HMRC, the transaction would be posted in one of the following ways:

Treated as a UK purchase - Standard rated

Which VAT code to use	Use VAT code 1.
How this affects the VAT Return	The tax amount appears in box 4 and the net amount appears in box 7.

The service is outside the scope of UK VAT

Which VAT code to use	There is no non-vatable VAT code set up by default. You should create a new VAT code within the Tax Rates window of the Settings menu within Accounting System Manager. NOTE: As transactions in this category should not appear on the VAT return, you must ensure the 'VAT Return' box is not ticked.
How this affects the VAT Return	This doesn't affect the VAT Return.

Which VAT code to use

There is no non-vatable VAT code set up by default. You should create a new VAT code within the Tax Rates window of the Settings menu within Accounting System Manager.

NOTE: As transactions in this category should not appear on the VAT return, you must ensure the 'VAT Return' box is not ticked.

How this affects the VAT Return

This doesn't affect the VAT Return.

The supplier isn't VAT registered

Which VAT code to use	Use VAT code 2.
How this affects the VAT Return	The net element appears in box 7.

This article offers general guidance only. While accurate at the time of publication, it may not suit your specific needs. We make no express or implied warranties. For tailored advice, consult a professional. For VAT, customs, or duties queries, contact HMRC on 0300 200 3700 or visit www.hmrc.gov.uk. We accept no liability for any loss from using this content. VAT or tax codes shown reflect default software settings and may differ in your setup.

Solution Properties

Solution ID: 210113171000923
Last Modified Date: Thu Oct 06 12:53:04 UTC 2022
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