We currently use Tax codes T0 to import and export goods to ROW, T4 to export goods to EC & T7 to import goods from EC.
We pay VAT on goods brought in from ROW, we have no deferment account.
After a No Deal Brixit, according to HMRC we should use 'Postponed Vat Accounting' to avoid paying VAT on imports from the EC and account for the VAT through our VAT return.
Some HMRC articles I have read imply that post-prexit the VAT we currently pay when importing from ROW will also be accounted for using PVA so will not need to pay this at customs clearance, although I am not clear that this is the case.
Is Sage already set up to deal with PVA and which tax codes should we use?
Also do we still need to complete EC Sales list and Intrastat?
This sounds like you are using Sage 50 Accounts as within Accounting we do not use T Codes.
I will transfer your query to the correct forum
Thanks for using Sage City. Sage 50cloud Accounts v26 includes new tax codes that will be switched on in the event of a No Deal Brexit. You can read more about these tax codes in this article:
Current guidance suggests that EC Sales Lists would need to be completed for sales up to the point of Brexit. So if for example the UK left the EU at 11pm on 31 October, sales to EU customers up to 11pm should be included on an EC Sales List. There's more information about this here:https://www.gov.uk/government/publications/vat-for-businesses-if-theres-no-brexit-deal/completing-a-european-community-sales-list-before-brexit
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Thanks for your reply. When is v26 available please, we are on V25 and software says that no updates are available?
Also how would the new tax codes be "switched on"?
Would we use T14 instead of T4 and T18 instead of T7 if we use postponed VAT accounting and have a deferment account. Would our imports from ROW also use T18?
We currently use T0 for ROW supplier goods invoice and T1 for customs agent's VAT invoice and pay VAT as goods enter country.. Does this mean we would no longer pay VAT on imports from ROW as they come into the country?
I have read information from HMRC about this but do not find it answers my questions!