Set up Sage 200 to submit your VAT Return online

You can submit your VAT Return to HMRC or the Irish Revenue online:

  • HMRC.

    If you set up Sage 200 to make online submissions to HMRC, when you produce a VAT Return it will automatically submit it to the HMRC.

    Sage 200 is compliant with the HMRC Making Tax Digital scheme (introduced April 2019).

  • Irish Revenue.

    When you produce your VAT Return, Sage 200 will output a VAT 3 file. You must save this file, then manually submit the file to the Irish Revenue using your ROS (Revenue On-line Service) account.

Set up Sage 200 to submit VAT Returns to HMRC

Before you start

  • Your base currency must be set to Pound Sterling.

    To check this, open Accounting System Manager > Settings > Currencies and Exchange Rates.

  • You must be enrolled with the HMRC and have a HMRC user ID and password.

  • To pay using e-Banking, you must have installed the Sage 200 e-Banking component and configured e-Banking for the bank account that you will pay your VAT from.
  • To pay using Supplier Payments, you must have had your application accepted for a Supplier Payments account, and finished setting up your account.

Set up VAT submissions

  1. Enter the VAT registration details for your company.

    Open: Accounting System Manager > Settings > Company Details.

    1. Enter your VAT registration number.
    2. Make sure your country code is set to GB - Great Britain.
  2. Enable online VAT submissions in the Nominal Ledger Settings:

    Open: Nominal Ledger > Utilities > Ledger Set Up > Ledger Settings.

    1. Go to the VAT Submissions tab.
    2. Enable VAT submissions.

      To make VAT submissions to the HMRC gateway for Making Tax Digital:

      • For Sage 200 Professional 2022 R1 or later: Select Enable VAT submissions as digital record as part of Making Tax Digital.

      • For all versions up to Sage 200 Professional 2021 R1: Select both Enable Online VAT Submissions and Submit as a digital record as part of Making Tax Digital.

      Making Tax Digital will become mandatory for all VAT registered businesses from April 2022. XML VAT submissions will no longer be accepted. If you previously used the XML VAT submission feature, you can either move over to MTD for VAT, or opt to use the HMRC portal to submit VAT returns manually.

    3. Enter your VAT Contact Details (Sage 200 Professional 2022 R1 or later) or e-Submissions contact details (up to Sage 200 Professional 2021 R1).

      You must enter a valid email address or the submission will fail.

  3. Set up Online VAT payments.

    In the UK, if you have submitted your VAT Return online, you must also pay your VAT online. You can do this directly from Sage 200 using either:

    • The Sage e-Banking service.
    • A Supplier Payments account.
    • The HMRC website.

When you produce your VAT Return, Sage 200 will contact the Government Gateway to upload the Return. You must provide your user ID and password.

Making Tax Digital (MTD) submissions to HMRC

As part of their plans to modernise the tax system, the government has changed the way VAT registered businesses create and submit VAT Returns.

From April 2022, all VAT registered businesses must become MTD compliant, meaning they must file their VAT returns electronically using accounting software, and are obligated to keep digital records of their transactions. From April 2019, only businesses above the VAT threshold of £85,000 were required to be MTD compliant. From April 2022, this will include businesses that are below the £85,000 threshold but are voluntarily VAT filers.

XML VAT submissions through the old HMRC gateway for VAT are no longer accepted. If you previously used the XML VAT submission feature, you can either move over to MTD for VAT, or opt to use the HMRC portal to submit VAT returns manually.

Sage 200 is compliant with the HMRC Making Tax Digital scheme.

If you have signed up for MTD for VAT, you can submit your VAT return to HMRC directly from Sage 200. See Set up VAT submissions.

To learn more about MTD, see Get ready for Making Tax Digital.

For details of the HMRC changes, see Voluntary VAT: Here’s what HMRC's April 2022 mandatory Making Tax Digital requirements mean.

Sage MTD for VAT

If you need to make VAT submissions for multiple companies, or adjust the figures in your VAT return, you can use the Sage MTD for VAT application.

To learn more about the MTD for VAT application, see Sage 200 - Making Tax Digital version compatibility.

Set up Sage 200 to submit VAT Returns to the Irish Revenue

Before you start

  • Your base currency must be set to Euro.

    To check this, open Accounting System Manager > Settings > Currencies and Exchange Rates.

  • You must be enrolled with the Irish Revenue and have a ROS (Revenue On-Line Service) user ID and password.

Set up VAT submissions

  1. Enter your ROS registration number and make sure your country code is set to IE.

    Open: Accounting System Manager > Settings > Company Details.

  2. Choose to use Online VAT submissions in the Nominal Ledger Settings:

    Open: Nominal Ledger > Utilities > Ledger Set Up > Ledger Settings.

    1. Go to the VAT Submissions tab.
    2. Enable VAT submissions.

      To make VAT submissions to the Irish Revenue, select Enable online VAT submissions.

    3. Enter your VAT Contact Details (Sage 200 Professional 2022 R1 or later) or e-Submissions contact details (up to Sage 200 Professional 2021 R1).

      You must enter a valid email address or the submission will fail.

When you produce your VAT Return, Sage 200 will output a VAT 3 file. You must save this file, then manually submit the file to the Irish Revenue using your ROS (Revenue On-line Service) account.

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