Hi
I have recently started my own freight forwarding business and am now doing my own accounts after having someone do them for the first few months, and I need a bit of help with tax codes in sage.
As a freight forwarder I book freight coming in and our of Europe which I put under T1, and freight from outside Europe with is zero rated which I put under T0.
Am I also right in thinking that for any import duty & VAT I get charged and also charge out goes under T9?
Any help would be greatly appreciated.
Thanks
Mark
Replies (2)
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If you use T9
for the import VAT you are being charged Sage will not reclaim it on your VAT return.
Use T1 for that instead.
I think T9 is fine for import duty.
If you are charging a customer VAT you must always use T1 (or it will not be added to your VAT bill and you will be defrauding HMRC).