Sage VAT changes

Update your VAT Codes for the 15% Rate

This tutorial was produced by 20gbtraining.co.uk and reproduced with their permission.

This tutorial is intended to show you how to update your tax codes in Sage Accounts for the 15% rate applicable from 1 December 2008 to 31 December 2009.

Standard VAT or VAT Cash Accounting

This method works with both Standard VAT and VAT Cash Accounting and we think will make life nice and easy when the rate reverts to 17.5% on 1 January 2010. Let us know what you think.

Create the new rate

To access the tax codes in your accounts program either select Settings - Tax Codes, or Settings - Configuration - Tax Codes.

Highlight an unused tax code, we would suggest T10 and choose to Edit.

The following screen will appear:

Set the Rate as 15.00 choose to Include in VAT return and enter an appropriate Description.

Choose OK and Close to save the new rate. Apply the changes to Configuration and if prompted do not save.

VAT on Sales

Start to use the new rate from 1 December 2008 and consider the following to make life easier.

1. Change the Default VAT Rate for Customers to T10

Select Settings - Customer Defaults and change the VAT Rate to T10. This will apply whenever you now create a new customer.

2. Update existing Customers Default VAT Rate to T10

Select the Customer List from Links in Customers and click Swap at the bottom of the screen to highlight them all.

Choose the Batch Change button, go to the Defaults tab and amend the Default VAT Rate to T10.

Save the change.

VAT on Purchases

 
Use the old T1 and new T10 rates as invoices arrive. At some point no more invoices will arrive with the 17.5% rate. Consider the following then to make things easier.

1. Change the Default VAT Rate for Suppliers to T10

Select Settings - Supplier Defaults and change the VAT Rate to T10. This will apply whenever you now create a new supplier.

2. Update existing Suppliers Default VAT Rate to T10

Select the Supplier List from Links in Suppliers and click Swap at the bottom of the screen to
highlight them all.

Choose the Batch Change button, go to the Defaults tab and amend the Default VAT Rate to T10.

Save the change.

Additional Note

If you use Tax Code T8 for Imports from the EC for items that if purchased in the UK would be standard rated, then you should change T8 as follows:

We hope this has been useful!

If you need more specific help, please contact Colette White
or Steve Harcourt