Sage VAT Coding after Brexit

[The Soup Dragon]

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?)

 

[UK Contractor Accountant]

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.

 

[UK Contractor Accountant]

Yes zero rating for EU sales post 1 Jan

 

[The Soup Dragon]

Yes zero rating for EU sales post 1 Jan

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?

 

[UK Contractor Accountant]

T2

 

[Displaycentreuk]

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?

 

[johndon68]

Thus selling to/buying from France is now the same tax code as selling to/buying from US was before Brexit (ie T9).

Using the default tax codes, that would be T0, not T9...

 

[envance]

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

 

[UK Contractor Accountant]

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

have a read on link below

https://www.sage.com/en-gb/blog/postponed-vat-accounting/