VAT Rates (Configuration Assistant)

Find this screen

Open: Configuration Assistant > VAT Rates.

How to

Create a VAT Rate

Click the Start or Edit button on the VAT Rates panel.

To create a VAT rate:

1. Click Add to add a new row on the table.

2. Enter a unique code and name.

   This name appears throughout Sage 200, so make sure that the name adequately describes your new VAT rate.

3. Select the VAT Return box if you want to include the value of VAT accumulated under this code in the VAT Return.

   Note: If you don't select this and post vatable transactions to this code, the results are included in the Non-Trading Vatable Transactions report. This report is produced with the VAT Return, but can also be produced as a separate report.

4. To specify how this tax rate is to be treated for processing, select the appropriate option from the Terms list.

   For detailed information about which terms to use, see VAT Rates (Configuration Assistant).

5. Enter the VAT rate % (0 to 999.99).

   You don't need to enter the percentage sign, or extra zeros after the decimal point. For example, if the tax rate percentage is 20.00%, just enter 20.

6. Select the nominal accounts for the Input Code and Output Code, if you don't want to use the defaults. The values for this VAT rate are accumulated in these nominal accounts.

   • If you do not enter accounts here, they will use the default nominal accounts you have set for Default VAT Input and Default VAT Output.

   • If you enter the same nominal account number for both Input Code and Output Code and your company is registered for VAT, the balance of the nominal account will reflect the outstanding net VAT.

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Useful info

About the nominal accounts used for VAT

Sage 200 uses two nominal accounts to record your VAT:

• VAT Input - for the VAT on your purchases.
• VAT Output - for the VAT on your sales.

Any VAT entered on a transaction is automatically posted to these nominal accounts. You specify which nominal accounts to use for these on the Default Nominal Accounts screen.

You may also want to have an additional nominal account to records payments made to HMRC.

As long as all your VAT nominal accounts have the same report category, you net VAT liability will be report on your Balance Sheet, so there's no need to journal between accounts.

If you only want to use a single nominal account for your VAT, then you can enter the same nominal account for both VAT Input and VAT Output.

Default VAT rates

When you create a new company, we include these VAT rates for you:

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.
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.

If you accept these defaults now, you can change your VAT details at any time.

Note:

We advise that you do not amend the general details of these tax rates. The only fields you should update on these rates are:

• %
• Input Acc. No
• Output Acc. No

You can create your own VAT rates if you need new ones.

Applying Term codes to your VAT rates

VAT rates have a Terms setting which controls how the rate is treated for processing.

You should select the appropriate term according to your business:

UK

Ireland or Northern Ireland

For more information, see Trading in EU countries.

Reverse charge VAT rates for the Construction Industry Scheme (CIS)

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What happens when

What happens when I save and mark as complete?

• When you finish adding information and click Save and Mark as Complete, the panel is marked with a tick to indicate that you have completed this step.
• While you remain on the Configuration Assistant, you can return to this panel to add or amend any of the details you have entered.