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Brexit - Tax codes - before and after 1 January 2021 - UK only

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Summary

To help you process transactions with the EU post Brexit and ensure your VAT Return is correct, we've created this quick guide of the most common scenarios to show tax codes with the EU, before and after 1 January 2021 in Sage 50 Accounts 27.1 and above.

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.

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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)

Sale of goods - no VAT registration provided

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)

Sales of goods to VAT registered customers in EC

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)

Sale of services - no VAT registration provided

No change: T1 (boxes 1 and 6) - Standard rated transactions

T22 (box 6)

Sales of services to VAT registered customers in EC

T0 (box 6) - Zero rates transactions

Purchase goods

Before Brexit

After Brexit

England, Wales and Scotland

Northern Ireland

T7 (boxes 7 and 9)

Zero rated purchases of goods from suppliers in EC

  • T17 (boxes 1, 4 and 7) - Import of goods - Under import reverse charge threshold of £135
  • T18  (boxes 1, 4 and 7) - Import of goods - Postponed VAT Accounting. More details >
  • T14  (box 7) - Import of goods - No VAT. More details >
    (this code was introduced in Sage 50 Accounts v27.2)

No change: T7 (boxes 7 and 9) - Zero rated purchases of goods from suppliers in EC

T8 (boxes 2, 4, 7 and 9)

Standard rated purchases of goods from suppliers in EC

  • T17 (boxes 1, 4 and 7) - Import of goods - Under import reverse charge threshold of £135
  • T18 (boxes 1, 4 and 7) - Import of goods - Postponed VAT Accounting. More details >
  • T19 (boxes 4 and 7) - Import of goods - VAT not Postponed VAT Accounting. More details >

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)

Purchase of services - no VAT

T16 (box 7) - Purchase of services from Rest of world - No VAT

T24 (boxes 1, 4, 6 and 7)

Purchase of services - reverse charge

T15 (boxes 1, 4, 6 and 7) - Purchase of services from Rest of world - Reverse charge

This article provides general rather than specific guidance to assist all of our customers. 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 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 call the HM Revenue and Customs (HMRC) National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk 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.

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