Set up Sage 200 to submit your VAT Return online

This topic is not applicable to Sage 200 Standard for Education.

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 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 Settings > Organisational and Financial > Currencies & Exchange Rates.
You must be enrolled with 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

Enter the VAT registration details for your company.

Open: Settings > Organisation and Financial > Company Details.
1. Enter your VAT registration number.
2. Make sure your country code is set to GB - Great Britain.
Enable VAT submissions in the Nominal Ledger Settings:

Open: Settings > Cash Book / Nominal Ledger > Nominal 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, select Enable VAT submissions as digital record as part of Making Tax Digital.
    
    Note - warning
    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. You must enter a valid email address or the submission will fail.
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.
Set up online VAT payments for e-Banking
1. Select Enable online VAT payments (UK only).
2. The bank details for the HMRC are entered automatically. Do not change these unless you have received notification from HMRC.
3. Select the bank account to pay the VAT from. The VAT payment defaults to this bank account.
4. Choose a nominal account to post the VAT payment to.
Set up online VAT payments for Supplier Payments
1. Select Enable online VAT payments (UK only).
2. Select Enable Supplier Payments.
  
  Note: When you enable Supplier Payments for the HMRC, a payee account for HM Revenue and Customs will be submitted for approval. Once this payee has been approved by your Supplier Payments account approver, you can make payments to the HMRC. The Status indicates the progress in the approval process.
3. The bank details for the HMRC are entered automatically. Do not change these unless you have received notification from HMRC.
4. Your account will automatically be set to your Supplier Payments Cash Book account.
5. Choose a nominal account to post the VAT payment to.

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.

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 (opens in a new tab).

For details of the HMRC changes, see Voluntary VAT: Here's what HMRC's April 2022 mandatory Making Tax Digital requirements mean (opens in a new tab).

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 (opens in a new tab).

Security and firewall settings

To make VAT submissions, Sage 200 needs to be able to access this URL.

regulatory-reports.sagecompliance.com

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

Before you start

Your base currency must be set to Euro.
You must be enrolled with the Irish Revenue and have a ROS (Revenue On-Line Service) user ID and password.

Set up VAT submissions

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

Open: Settings > Organisation and Financial > Company Details.
Choose to use Online VAT submissions in the Nominal Ledger Settings:

Open: Settings > Cash Book / Nominal Ledger > Nominal 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. 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.

What's next?

When you have configured Sage 200 to submit your VAT Return to the relevant tax authority, you can now produce your VAT Return.

VAT Return and reporting

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