Tax code zero rated import from EU

Hello

We import standard and zero rated goods from the EU.

We intend to use Tax code T18 - Import of goods - postponed VAT for the standard rated items.

I've checked the new list of T codes but there doesn't seem to be a tax code for zero rated goods imported from EU.

Am I right in assuming I need to create a tax code based on code T19 but with a value of 0%.

Any help would be much appreciated.

Regards All,

Sandra

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  • Hi Sandra, 

    I have this exact same question and I cannot beleive that the new tax codes do not account for this! 

    Did you get any further with it? At present I am thinking I am just going to carry on using the old codes until we get some proper clarification. Its zero rated so we know there is no VAT due. And presumably the question about postponed VAT accounting is completely irrelevant if there is no VAT in the first place?!

    Would like to here what conclusion you have come to!

  • Hello Pat

    I used the Tax Code finder wizard in sage knowledgebase and eventually it led me to the resolution 'Create your own tax code'. I'd really rather someone else had done it for me! 

    Which tax code to use

    We recommend you create a new tax code which is a copy of the T19 tax code and with the Rate set to 0.00%. For full details of how T19 is configured, please refer to our default tax codes guide.

    Haven't actually bitten the bullet and created the tax code yet, but I think that's the route I'll take.

    All the best!

  • Hi Pat/Sandra

    How did you get on with Tax codes?  We are purchasing items that should be standard rated from EU but don't show vat on invoice so I'm assuming I use T18 and this will account for this in my VAT return?  It's talking about raising a credit invoice for VAT amount which seems confusing? Any help greatly appreciated!

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  • Hi Pat/Sandra

    How did you get on with Tax codes?  We are purchasing items that should be standard rated from EU but don't show vat on invoice so I'm assuming I use T18 and this will account for this in my VAT return?  It's talking about raising a credit invoice for VAT amount which seems confusing? Any help greatly appreciated!

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