Vat Code in Sage

Yazi

Hi

What Sage Vat code would you use for purchases from the USA?

Thanks
Yas

columbia

Hi

I use T0 which is for UK zero-rated items, and exports outside the EC.

Yazi

Thanks

Have been using that one but just wanted to confirm

Yas

visha

Be careful which code to use in sage

T0 is for goods that has a Zero vat applied to them

I believe that the code that you should use is T2.

When the goods arrive in UK they will be subject to VAT. and the goods will not be released untill you have paid the Customs and excise(vat) duties.

whether these duties are actually paid or charged to your credit a/c does not really matter but the fact remains that you will have paid vat on them.

when you come to enter that transaction on the sage the T2 code need to be used and what it will do is to credit the vat out-put (payable) and debit the vat input (re-claimablable) with the standard rate.

This will not have any effect on your NET vat payable , but it will have an impact on box 8 and 9 if I am not mistaken where you have to declare how much of your goods have come from EU and other coutries other then EU

If you have a VAT inspection, he will pick up on this and may be a penalty will be applied depending on how much you import.

I would not use T0 because you are not EXPORTING but IMPORTING and VAT is payable on IMPORTS.

Poodle

How to post import VAT on goods purchased from a country outside the EC

When goods are purchased from a country outside the EC, import VAT may be applied. This usually occurs when the goods supplied are vatable in this country. Normally a separate invoice is supplied by HMR&C showing the the amount of import duty and VAT due. You have to create a supplier record for this invoice i.e REVENUE or HMRC.

To post a supplier invoice from HMR&C to record the duty and import VAT as follows

Import VAT invoice of £87.50
N/C 5101 Details Import VAT Net = 0.00 T/C = T1 VAT = 87.50

Import duty invoice £100 plus £17.50 VAT
N/C 5101 Deatails Import Duty Net = 100.00 T/C = T1 VAT = 17.50

Note If you are using the Sage default nominal structure, 5101 is the Import Duty nominal code. the import VAT transaction does not affect this nominal code, as the net value is zero.

Generally VAT is charged on duty at the same rate as the item being imported. Posting in this way ensures that the VAT element is picked up in box 4 in the VAT return. The duty amount may be picked up on the VAT return depending on the tax code used.

To post a supplier invoice for the purchase of the goods if you are posting in foreign trader or sterling then you post using T0 with £0.00 in the net box. The net amount of this invoice is now picked up in box 7 on the VAT return.

Hope this helps and is a summary from the sage ask database article number 11281 if you have access to this faclity.

Poodle

archerc

Hi Poodle

It was very good explanation. Thank you for that.

Just want ask you further on import vat.

This is first time I am dealing with import.

1. I received an invoice. On description heading it says
Description of charges Non Taxable
Import VAT 14.23
Brokerage surcharges 11.00

Total charges 25.23

Total VAT

Total Amount due 25.23

I tried speaking to UPS and I spent more than an hour to find the answer but without any success.

I think I will receive C79 certificate but I am not for sure.

How do I do entry. What is vatable? zero rate standard rate?

I really appreciate any help.

Kind Regards

Clive