VAT after No Deal Brexit

SUGGESTED

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?

Parents Reply Children
  • 0 in reply to Andy Rickeard

    Hi Andy,

    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!

    Thank you

    Liz

  • 0 in reply to Liz S
    SUGGESTED

    Hi Liz,

     

    Sage 50cloud Accounts v26 is available now. It’s an upgrade rather than an update, as it changes the main number of your version. You can download and install this from here.

     

    The new tax codes are already in the software. You can view them in Settings > Configuration > Tax Codes. Before you enter any transactions using these new tax codes, you must amend the Default Tax Code box on your customer, supplier and product records and related delivery addresses to the relevant new tax code.

     

    With regards to paying VAT on imports from ROW, HMRC will be able to confirm this with you.

     

    If this has answered your question please click More > Verify Answer.

     

    Regards,

     

    Paul

    Sage UKI

  • 0 in reply to Paul Morgan

    Hi Paul,

    Thank you for your reply.

    Does that mean that if we use the tax codes for suppliers and customers, the VAT return will be correct for postponed VAT accounting?

    I am still confused about which tax codes to use.

    I think we should use T14  for sales of goods to EU countries (previously used T4) and to ROW (previously used T0)  - is that correct?

    I think we should use T18 for import of goods from EU (previously used T7)  and for import from ROW (previuosly used T0)  - is that correct?

    I am unclear if/when T15, T17 & T19 would be used?

    Regards

    Liz

  • 0 in reply to Liz S
    SUGGESTED

    Hi Liz.

    The new codes aren't turned on in your program yet, they will only appear in v26 if a no deal Brexit happens.

    You can read which tax codes will appear below. If T14 is already in use we will use the next available tax code, for example T34.

    New import and export tax codes if the UK leaves the EU without a deal

    If this has answered your question please click More > Verify Answer.

    Regards,

    Ian

    Sage UKI