Sage VAT Coding after Brexit

Discussion in 'Accounts & Finance' started by The Soup Dragon, Dec 31, 2020.

  1. The Soup Dragon

    The Soup Dragon UKBF Regular Free Member

    190 5
    Can anyone tell me what EU countries will be coded in Sage after Brexit ( currently T4) and do current customers have to be changed ( T0?)
     
    Posted: Dec 31, 2020 By: The Soup Dragon Member since: May 13, 2013
    #1
  2. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,231 941
    Country Code Name Comments
    UK and Ireland (ROI) T0 Exempt

    • Exempt from VAT. Set at 0%.
    UK and Ireland (ROI) T1 Standard Rate
    • VAT at the standard rate (20% UK, 23% Ireland).
    UK and Ireland (ROI) T2 Zero Rated
    • Vatable, but zero rated at 0%.
    Ireland (ROI) and Northern Ireland only T4
    EC Sales Goods
    • Sales of zero-rated goods and services to the EU. Set at 0%.
    Ireland (ROI) only T5
    EC Sales Services
    • Sales of non-related services to EU. Set at 0%.
    Ireland (ROI) only T6
    EC Purchase Services
    • Purchase of non-related services from the EU. Set at 0%.
    Ireland (ROI) and Northern Ireland only T7
    EC Zero Purchase
    • Purchase of zero rated goods and related services from the EU. Set at 0%.
    Ireland (ROI) and Northern Ireland only T8
    EC Standard Purchase
    • Purchase of Vatable goods and related services from the EU. Set at the standard rate 20% Northern Ireland, 23% Ireland.
    UK only
    T16 Purchase Services ROW (Reverse Charge)

    For the UK:
    • Purchase of services from all countries outside the UK that you account for under the reverse charge procedure.
    • Set at the standard rate 20%.
    • Affects UK VAT Return boxes: 1, 4, 6, 7.
    UK only
    T18 Import Goods ROW - Postponed VAT

    For Great Britain (England, Scotland, Wales):
    • Purchase of goods from all countries outside the UK (including EU) with VAT charged, using postponed VAT accounting.
    • Set at the standard rate 20%.
    • Affects UK VAT Return boxes: 1, 4, 7.
    • Use instead of VAT rate code 8.
    For Northern Ireland:
    • Purchase of goods and related services from all countries outside the UK and EU with VAT charged, using postponed VAT accounting.

      Note: There are no changes in VAT treatment for the movement of goods between Northern Ireland and the EU, so you would still use VAT code 8 for EU countries.

    • Set at the standard rate 20%.
    • Affects UK VAT Return boxes: 1, 4, 7.
     
    Posted: Dec 31, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,231 941
  4. The Soup Dragon

    The Soup Dragon UKBF Regular Free Member

    190 5
    Thanks so sales to EU VAT set at 0% but do they need to be set for T4 or T0 or is that a moot point?
     
    Posted: Dec 31, 2020 By: The Soup Dragon Member since: May 13, 2013
    #4
  5. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,231 941
  6. CBJROMS

    CBJROMS UKBF Regular Free Member

    142 25
    I get the basic concept that, after Brexit, EU countries are now treated the same as ROW for VAT purposes. Thus selling to/buying from France is now the same tax code as selling to/buying from US was before Brexit (ie T9). Northern Ireland is part of the UK so VAT is charged as normal (T1 on products).

    But I am really struggling to get my head around the introduction of Postponed VAT and Reverse Charge for ROW. Prior to January 2021, when importing goods from ROW, the shipper would give me a VAT invoice which I recorded in exactly the same way (ie T1) as any other VAT invoice. Is this all different now?
     
    Posted: Jan 20, 2021 By: CBJROMS Member since: May 31, 2008
    #6
  7. johndon68

    johndon68 UKBF Big Shot Full Member - Verified Business

    3,463 637
    Using the default tax codes, that would be T0, not T9...
     
    Posted: Jan 21, 2021 By: johndon68 Member since: Nov 2, 2009
    #7
  8. HRUser

    HRUser UKBF Newcomer Free Member

    6 0
    T0 is correct I think because you want these in your sales figures the VAT boxes, T9 would exclude them from there altogether which doesn't seem correct to me. Waiting for my accountant to confirm
     
    Posted: Feb 17, 2021 By: HRUser Member since: Sep 18, 2017
    #8
  9. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,231 941
    Posted: Feb 17, 2021 By: UK Contractor Accountant Member since: Sep 18, 2013
    #9