Moving this post to the Sage 50 Accounts UK Support Group.

Thanks,

Derek

Hi Jess,

Thanks for using Sage City.

You should use tax code T2 for VAT exempt transactions and tax code T0 for zero rated transactions. You can refer to this guide for more info on Sage default tax codes.

If you’re still unsure as to which tax code to use, 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