standard sage50 setup with vat codes
can the forum readers please advise which codes should be used in the following scenarios [ not too familiar with sage ]
purchases
invoice for medical health premium T0 or T2
congestion charges in london
general + mv insurances
Sales
sales to non EU country [ USA Dubai] T0 or T2
[where apparently T0 = zero rated and T2 is exempt ] ?
trying to setup a system with a lot of suppliers and accounts
thanks for inputs !
AR
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Sage VAT codes
If you go to HELP and look up TAX CODES, there is a list of the default codes. If your Sage has the default set up these will work best for most transactions.
Sage suggests
T2 for exempt supplies - insurance, rates etc
T0 for zero rated supplies.
Both the above will appear in Box 7 of the VAT return calculation.
T9 is for outside the scope of VAT, so use this for you non-EU sales and purchases, and anything else you don't want on the VAT return.
T3,T4 are for EU sales, T7 and T8 for EU purcahses. These will put EU transactions in the right boxes and will feed through to the EC sales list report.