Sage 200 - VAT code finder: Purchase - Goods - EC - VAT registration not provided - VAT charged

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.

The supplier must charge VAT on the goods purchased at the country of origin rate. For example, an Irish supplier charges VAT at 21%.

Post the invoice as two separate transactions:

  • Post the net element using VAT code 2.
  • Post the VAT element using a non-vatable VAT code. If you have not previously done so, you will need to create a new VAT code to accomodate this.
    A/CDateN/CNetVAT codeVAT
    Supplier account referenceDate of the transactionNominal code for the purchaseNet element of the transaction20.00
    Supplier account referenceDate of the transactionNominal code for the purchaseVAT element of the transactionCustom0.00

How this affects the VAT Return - The net element posted using VAT code 2 appears in box 7. The VAT element is not included in the VAT Return.

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
210209164146343
Last Modified Date
Fri Oct 07 07:24:04 UTC 2022
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