Sage 50 VAT T Codes

20th November 2013

Sage 50 VAT T Codes.
Sage 50 Accounts book keeping software populates its VAT return by using tax (T) codes to indicate which VAT rate to apply to each transaction. Whenever you post a transaction in Sage 50 Accounts you must enter the relevant T code:

 

T0 – Zero rated transactions (eg most food, books, new builds, public transport)
T1 – Standard rated transactions – Currently 20%.
T2 – Exempt transactions (eg postage, insurance, finance charges)
T4 – Sale of goods to customers in the EC.
T5 – Lower rated transactions – Currently 5%.
T7 – Zero rated purchases from suppliers in the EC.
T8 – Standard rated purchases of goods from suppliers in the EC (Sage then automatically populates reverse charge VAT in Boxes 2 and 4 on the VAT Return).
T9 – Transactions not involving VAT (Any transactions posted with this tax code do not appear on your VAT Return, eg most journals).
T20 – Sale or purchase of items that fall under the remit of carousel fraud (reverse charge VAT).
T22 – Sale of services to customers in the EC.
T23 – Purchase of zero rated or exempt services from suppliers in the EC.
T24 – Purchase of standard rated services from suppliers in the EC (Sage then automatically populates reverse charge VAT in Boxes 2 and 4 on the VAT Return).
T25 – Sale or purchase of capital goods over £2,000 (for Flat Rate VAT scheme)

 

To view or amend the tax codes:    Sage > Settings > Configuration > Yes to close all other open windows > Tax Codes.
If you require further Sage support, perhaps by migrating to the cloud version or by using Sage drive, please do not hesitate to contact us.

Related Services

Sage Support Value Added Tax


 
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