Summary
Resolution
CAUTION: This guide features the most common scenarios for trading between the UK and EU only in Sage 50 Accounts v27.1 and above.
For more detailed help, and guidance for domestic trade, and trade between UK and the rest of the world, or if you are using Sage 50 Accounts v27.0 or below, please visit the Which tax code should I use? - from 1 January 2021 (UK only) guide.
The tax codes below are the default tax codes set up in Sage 50 Accounts v27.1, these may be different in your software.
Sales goods
Before Brexit | After Brexit | |
Based in England, Wales and Scotland | Based in Northern Ireland | |
T0 (box 6), T1 (boxes 1 and 6) or T2 (box 6) | T0 (box 6) - Zero rates transactions - assuming sale is zero rated | No change: T0 (box 6), T1 (Boxes 1 and 6) or T2 (Box 6). |
T4 (boxes 6 and 8) | T0 (box 6) - Zero rates transactions - assuming sale is zero rated | No change: T4 (boxes 6 and 8) - Sales of goods to VAT registered customers in EC |
Sales services
Before Brexit | After Brexit | |
England, Wales and Scotland | Northern Ireland | |
T1 (boxes 1 and 6) | No change: T1 (boxes 1 and 6) - Standard rated transactions | |
T22 (box 6) | T0 (box 6) - Zero rates transactions |
Purchase goods
Before Brexit | After Brexit | |
England, Wales and Scotland | Northern Ireland | |
T7 (boxes 7 and 9) |
| No change: T7 (boxes 7 and 9) - Zero rated purchases of goods from suppliers in EC |
T8 (boxes 2, 4, 7 and 9) |
| No change: T8 (boxes 2, 4, 7 and 9) - Standard rated purchases of goods from suppliers in EC |
Purchase services
Before Brexit | After Brexit | |
England, Wales and Scotland | Northern Ireland | |
T23 (boxes 6 and 7) | T16 (box 7) - Purchase of services from Rest of world - No VAT | |
T24 (boxes 1, 4, 6 and 7) | T15 (boxes 1, 4, 6 and 7) - Purchase of services from Rest of world - Reverse charge |
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. |
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