Brexit transition (UK and Ireland)

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Take a look at the latest legislation changes and the new features in Sage 200 to help you trade after the Brexit transition from 1 January 2021.

How to update Sage 200 after the Brexit transition

If you have existing Sage 200 companies that you created in a version of Sage 200 Professional before 2020 R2, you'll need to update them after the Brexit transition from 1 January 2021.

You don't need to update any new Sage 200 companies that you've created using Sage 200 Professional 2020 R2 onwards.

Note: This applies for both the UK and Ireland.

Update the GB country code to be a non-EU member

Only update the GB country code if you are using Sage 200 Professional version 2020 R2 onwards. If you're using an older version than 2020 R2, we recommend that you do not update the GB country code and leave it set as a EU member. Otherwise this can affect your ability to generate Intrastat reports and the EC Sales List.

You will need to change the GB country code from being a EU member to a non-EU member.

You need to change this for all your Sage 200 companies.

Open: Accounting System Manager > Settings > Country Codes.

  1. Find the GB country code.
  2. Deselect the EU box.

Add new VAT rate codes

We've added some new default VAT rate codes for the UK and Ireland, to reflect how countries will trade after the Brexit transition.

If you import or export goods and services after the Brexit transition ends, you should add these new VAT rates to all your Sage 200 companies.

Open: Accounting System Manager > Settings > VAT Rates.

  1. Select Create Import/Export VAT Rates.

    • New VAT rate are added to the list:

      • 16 - Purchase Services ROW (Reverse Charge) (used by UK only): Purchase of services from all countries outside the UK that you account for under the reverse charge procedure.

      • 18 - Import Goods ROW - Postponed VAT (for UK and Ireland): Purchase of goods from all countries outside the UK (including EU) with VAT charged, using postponed VAT accounting.

    • If you already have VAT rate codes for 16 and 18, the new code will be highlighted as already in use. You'll need to change the generated Code to a different number. The code number doesn't matter, as it's the Terms setting that affects your VAT return.
  2. Set your Input Code and Output Code for the new rates, if you want to change these from the default nominal accounts (Default VAT Input and Default VAT Output).
  3. Select OK to save the new VAT rates.

This feature is only available from Sage 200 Professional 2020 R2 version onwards. If you're using an older version of Sage 200:

Use the new Northern Ireland XI country code (Republic of Ireland only)

The following new country codes have been added for use in Republic of Ireland only:

  • XI - Northern Ireland.

  • XU - UK (excluding Northern Ireland) for Great Britain (however, we don't currently expect this country code to be used).

Once you have completed any submissions that are in progress, you should update your customers and suppliers based in Northern Ireland to use the XI - Northern Ireland country code.

Tip: If you need to update a large number of accounts, you could do this by exporting the accounts to a CSV file, which you can then update and reimport into Sage 200. See Import, export and update information.

These country codes are only available from Sage 200 Professional 2020 R2 version onwards. If you're using an older version of Sage 200:

  • Create the XI - Northern Ireland and XU - UK (excluding Northern Ireland) country codes manually. For the XI - Northern Ireland country code, make sure that you select the EU box. See Country codes.

It may also be necessary to make amendments to your report layouts, if you need to display a GB VAT number prefix.

What changes after the Brexit transition?

VAT rate codes

These new VAT rate codes are only available using Sage 200 Professional version 2020 R2 onwards.

Great Britain
  • The new VAT code 16 - Purchase Services ROW (Reverse Charge) is intended for purchase of services from all countries outside the UK that you account for under the reverse charge procedure.

  • The new VAT code 18 - Import Goods ROW - Postponed VAT is intended for purchase of goods from all countries outside the UK (including EU) with VAT charged, using postponed VAT accounting.

  • Accounting for carousel fraud or missing trader intra community (MTIC) fraud will not change for the UK, as it only applies to domestic sales and purchases in the UK.

Northern Ireland
  • The new VAT code 16 - Purchase Services ROW (Reverse Charge) is intended for purchase of services from all countries outside the UK that you account for under the reverse charge procedure.

  • The new VAT code 18 - Import Goods ROW - Postponed VAT is intended for 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.

  • Continue to use the existing VAT rate codes 4, 7, 8 for reverse charge VAT on goods supplied from an EU business.

    Do not use VAT codes 5 and 6 for reverse charge VAT on services, and use VAT code 16 instead.

  • Accounting for carousel fraud or missing trader intra community (MTIC) fraud will not change for the UK, as it only applies to domestic sales and purchases in the UK.

Ireland
  • The new VAT code 18 - Import Goods ROW - Postponed VAT is intended for purchase of goods from all countries outside Ireland and the EU with VAT charged, using postponed VAT accounting.

  • Continue to use the existing VAT rate codes 4-8 for reverse charge VAT on goods and services supplied from an EU business.

What is postponed VAT accounting?

Postponed VAT accounting allows businesses that import goods to account for import VAT on their VAT return, rather than paying import VAT on or soon after the time that the goods arrive at the border.

From 1 January 2021, if your business is registered for VAT in the UK or Ireland, you’ll be able to account for import VAT on your VAT Return for goods you import into:

  • Great Britain (England, Scotland and Wales) from anywhere outside the UK (including EU members).

  • Northern Ireland from outside the UK and EU. You will not change how you account for VAT for movement of goods from the EU.

  • Ireland from non-EU countries.

We've added VAT code 18 - Import Goods ROW - Postponed VAT for postponed VAT accounting.

For more information:

Default VAT rates

Country Code Name Comments
UK and Ireland (ROI) 0 Exempt
  • Exempt from VAT. Set at 0%.
UK and Ireland (ROI) 1 Standard Rate
  • VAT at the standard rate (20% UK, 23% Ireland).
UK and Ireland (ROI) 2 Zero Rated
  • Vatable, but zero rated at 0%.
Ireland (ROI) and Northern Ireland only 4

EC Sales Goods

  • Sales of zero-rated goods and services to the EU. Set at 0%.
Ireland (ROI) only 5

EC Sales Services

  • Sales of non-related services to EU. Set at 0%.
Ireland (ROI) only 6

EC Purchase Services

  • Purchase of non-related services from the EU. Set at 0%.
Ireland (ROI) and Northern Ireland only 7

EC Zero Purchase

  • Purchase of zero rated goods and related services from the EU. Set at 0%.
Ireland (ROI) and Northern Ireland only 8

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

16 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.

This VAT code is only created by default in Sage 200 Professional 2020 R2 version onwards.

UK and Ireland (ROI)

18 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.

For Ireland:

  • Purchase of goods and related services from all countries outside Ireland and the EU (such as GB) with VAT charged, using postponed VAT accounting.
  • Set at the standard rate 23%.
  • Affects Irish VAT Return boxes: T1, T2, PA1.

This VAT code is only created by default in Sage 200 Professional 2020 R2 version onwards.

VAT MOSS

UK
  • UK businesses will no longer be eligible to use the Union MOSS scheme, but can register for the non-Union MOSS scheme in an EU member state.
  • UK businesses will not be required to submit the quarterly HMRC MOSS VAT return after leaving the EU. Your final return should be submitted by 20 January 2021.

See HMRC guidance: Pay VAT when you sell digital services to EU customers after Brexit

Ireland
  • Irish Businesses will no longer include UK sales in the MOSS scheme, as it only applies to EU members.

Intrastat

UK
  • Great Britain: You will still need to report on goods arriving from the EU, but not goods departing to the EU.
  • Northern Ireland: No change. You will still need to report on goods both arriving from the EU and departing to the EU.

EC Sales List (ESL)

UK
  • Great Britain: You will not need to submit your EC Sales List (ESL) for the export of goods or the supply of services made to EU businesses on or after 1 January 2021. You will still have to submit your EC Sales List for sales made before 1 January 2021.
  • Northern Ireland: You will still need to submit EC Sales Lists (ESLs) if you sell goods to EU VAT-registered customers.

See HMRC: How to report your EU sales for VAT.

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