What tax code should I use for non-product sales to the USA? HMRC tell me it is outside the scope of VAT but if I use T9 , the amounts do not appear in Box 6 on the VAT return.
Hi Pat,
Thanks for using Sage City.
The T9 tax code should be used for non-VATable transactions, e.g. wages, bank transfers, etc. Transactions posted with T9 don’t appear on your VAT return.
You can use our Tax code finder wizard to determine the relevant tax code to use when posting sales or purchase transactions.
If this has answered your question please click More > Verify Answer.
Regards,
Paul
Sage UKI
.
I am still unsure which tax code to use for my US sales invoices! HMRC said to contact my software provider. Is it zero or outside the scope! T0 or T9?
You’d need to check with HMRC if this type of transactions is zero VAT, VAT exempt or not VATable Pat.
If it should be posted with zero VAT, you should use tax code T0.
If the transaction is VAT exempt, you should use tax code T2.
If the transaction isn’t VATable, you should use tax code T9. This means it won’t appear on your VAT return.
Regards,
Paul
Sage UKI
They said it is outside the scope of VAT but needs to be on the VAT return in box 6 so I am now using T0. Have just changed all my transactions to T0 from T9 which was not easy as in dollars but in a UK company.!! You can't just edit a transaction as the system has already converted them to sterling.
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