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Find the right tax code

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Summary

This guide explains what tax code to use for sale of goods or services under CIS Domestic Reverse Charge.

Description

Based on the information you've given us, we recommend you use the following tax codes depending on the VAT rate you're applying.

Using Sage 50 Accounts v25 or below? Tax codes T21 and T26 are not created by default, you will need to create them manually. Read more >

Standard rate - 20%

Which tax code to useT21
How this affects your VAT Return

The net amount appears in box 6.

Reduced rate -  5%

Which tax code to useT26
How this affects your VAT Return

The net amount appears in box 6.


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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.