Tax Code for Outside EU on Sage

[weebly_one]

I am having a brain fart!

I am entering some expenses into Sage for a Director who has travelled abroad on business. It is hotel bills etc.

What tax code should I use for the entry?

Exempt (T2 in Sage) so the net goes on the vat return
or not involving VAT (T9) in sage so it bypasses the vat return completely?

I do outside EU invoices so rarely I can neer remember which it should be - or is there another option?

 

[David Griffiths]

I'd use T9.

 

[JGOffshore]

Surely if you use T9 the expenses won't show as a cost or overhead at all.

 

[weebly_one]

Surely if you use T9 the expenses won't show as a cost or overhead at all.

The T codes just tell Sage where to put the figures in the VAT return, T9 meaning they do not appear at all in the VAT return.

It is the Nominal Codes which tell Sage if the items are expenses, a cost or an overhead. So T9 with an expenses nominal code will mean the full amount will appear in the Profit and Loss.

 

[JGOffshore]

The T codes just tell Sage where to put the figures in the VAT return, T9 meaning they do not appear at all in the VAT return.

It is the Nominal Codes which tell Sage if the items are expenses, a cost or an overhead. So T9 with an expenses nominal code will mean the full amount will appear in the Profit and Loss.

Sorry. Didn't read the post properly.

 

[Dillan1601]

If you go into Settings, Configuration, Tax codes you can modify/create tax codes specific for EC transactions. If you double click on a tax code that is not in use you can edit it by ticking the EC code box and specifying whether it is EC Sales or EC purchases. Also include a description and tick the 'include in VAT return' box. I do not have the most recent version but hopefully this will point you in the right direction.

 

[DorotaT]

I think it should be as T7 for zero rated(or T8) for standard rated purchases in EC.
It will show on your VAT return.

 

[DorotaT]

and outside EU I think you just put is on T0 as zero rated.

 

[johndon68]

Sage themselves would advise T0.

John

 

[DorotaT]

well..it probably depends which version of SAGE..as mine(Instant Accounts) does not seem to be so smart...

 

[johndon68]

well..it probably depends which version of SAGE..as mine(Instant Accounts) does not seem to be so smart...

Not sure what you mean, by default, the tax codes in both Sage Instant and Sage 50 are identical...

John

 

[DorotaT]

Sage themselves would advise T0.

John

I mean that I have to figure myself which one tax code apply...

 

[DFL Accountants Ltd]

Hi.

I always set up a seperate code, T6, for non-EU transactions - this should be ticked to include on the VAT return. Vat rate is 0%.

This can make it easier for you to identify non-EU transactions at a later date if necessary.

Darren Loring
DFL Accountants Ltd