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:
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Click Add to add a new row on the table.
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Enter a unique code and name.
This name appears throughout Sage 200, so make sure that the name adequately describes your new VAT rate.
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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.
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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).
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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.
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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.
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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.
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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 |
|
UK and Ireland (ROI) | 1 | Standard Rate |
|
UK and Ireland (ROI) | 2 | Zero Rated |
|
Ireland (ROI) and Northern Ireland only | 4 |
EC Sales Goods |
|
Ireland (ROI) only | 5 |
EC Sales Services |
|
Ireland (ROI) only | 6 |
EC Purchase Services |
|
Ireland (ROI) and Northern Ireland only | 7 |
EC Zero Purchase |
|
Ireland (ROI) and Northern Ireland only | 8 |
EC Standard Purchase |
|
UK only |
16 | Purchase Services ROW (Reverse Charge) |
For the UK:
|
UK and Ireland (ROI) |
18 | Import Goods ROW - Postponed VAT |
For Great Britain (England, Scotland, Wales):
For Northern Ireland:
For Ireland:
|
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.
For examples of VAT rates, and to determine which rates to use, see:
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
Select Reverse charge sales (Mobiles) and Reverse charge purchases (Mobiles) when you are trading in specified electronic devices (such as mobile telephones and computer chips) in the UK with another UK business and the value of your trade exceeds £5000 for a UK VAT registered customer.
These two tax rates have not been set up for you. If you add them:
- Set the sales tax rate at your local VAT rate.
- Set the purchase tax rate at 0%.
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Select Purchase Non-Related Services for the purchase of services from all countries outside the UK that you account for under the reverse charge procedure.
Ireland or Northern Ireland
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Select Sales Goods & Related Services if you are selling goods to EU customers (outside your country) and there are associated service costs such as freight charges.
Values are included in the total on box 8 on the UK VAT Return.
- Select Sales Non-Related Services if you are selling services that are not related to any supply of goods, to EU customers (outside your country). For example, legal services.
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Select Purchase Goods & Related Services if you are acquiring goods from EU suppliers (outside your country) that have associated service costs such as freight charges.
Values are included in the total in boxes 7 and 9 on your UK VAT Return.
- Select Purchase Non Related Services if you are purchasing services that are not related to any supply of goods, from EU suppliers (outside your country). For example, legal services.
For more information, see Trading in EU countries.
Reverse charge VAT rates for the Construction Industry Scheme (CIS)
Sage 200 Standard does not support the Construction Industry Scheme (CIS).
The reverse charge VAT rate Terms for CIS must not be used with Sage 200 Standard.
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Do not use the VAT rate Terms for CIS Reverse charge sales and CIS Reverse charge purchases in your VAT rates.
Although these VAT rate Terms for CIS are listed, you must not use these terms with your VAT rates.
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.
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