What is the VAT code for EU purchases?
EGZ
When we purchase goods from a European VAT-registered supplier, the VAT code that we should use is EGZ (European Goods Zero rated). No VAT is charged / reclaimed. When we purchase goods from a non-European supplier (i.e. China, Thailand, etc.) the code we use is O (Outside the scope of VAT).
Do I pay VAT on purchases from EU?
Before Brexit, UK consumers were free to buy items from anywhere in the EU without incurring import duties and other charges. Anyone in the UK receiving a gift from the EU worth more than £39 will now face a bill for import VAT at 20%. …
What is tax code T15 on Sage?
T15 – Purchase of services from ROW – Reverse charge. T16 – Purchase of services from ROW – No VAT.
What is VAT code T9 in Sage?
T9 – Transactions not involving VAT (Any transactions posted with this tax code do not appear on your VAT Return, eg most journals).
What is tax code T7 in Sage?
Sage Tax Codes
| T0 | Zero rated transactions. |
|---|---|
| T7 | Zero rated purchases from suppliers in EC. |
| T8 | Standard rated purchases from suppliers in EC. |
| T9 | Transactions not involving VAT. Note: This is the default non-vatable tax code. Any transactions posted with this tax code do not appear on your VAT Return. |
What are the new VAT codes in Sage?
The five new sage VAT codes introduced to cover the Brexit changes are:
- T15 Purchase of services from ROW – Reverse charge.
- T16 Purchase of services from ROW – No VAT.
- T17 Import of goods – Under import reverse charge threshold.
- T18 Import of goods – Postponed VAT.
- T19 Import of goods – VAT not postponed.
Do you pay VAT on foreign purchases?
If you import goods into Great Britain from outside the UK or from outside the EU to Northern Ireland you may have to pay import VAT on goods. For supplies of services from outside the UK you must account for VAT under the reverse charge procedure.
How do I import VAT into Sage?
Post an invoice for the duty and import VAT
- Click Suppliers then click Batch invoice.
- To record the supplier invoice for duty and import VAT, enter the relevant details in the boxes provided. For example: A/C* Date* N/C* Details. Net. T/C* VAT. IMPORTS. Date. 5101. Import VAT. 0.00. T19. 200.00.
- Click Save then click Close.
What is Sage VAT code T4?
T4 – Is the VAT on sales registered EC customers. T5 – Is the reduced rate VAT at 5% T7 – Is the zero rated purchases from EC suppliers. T8 – Is the standard rated purchases from EC suppliers.
What’s the difference between T9 and T0?
T0 should be used for purchases which are zero-rated, ie purchases which are not VAT-able – eg food items which do not attract VAT. T9 is used for expenses which are not purchases, such as wages, which never attract VAT.
What is tax code T3 in Sage?
Reduced rate sales
| T0 | Zero rated sales and purchase of goods for resale |
|---|---|
| T3 | Reduced rate sales and purchase of goods for resale – currently 13.5% |
| T4 | Sales of goods to VAT registered customers in EC |
| T5 | Exempt import of goods from suppliers in EC |
| T6 | Exempt import of goods from suppliers outside EC |