Post Brexit Tax Codes

Question

For postponed VAT accounting the Sage advise is for postponed VAT accounting you use tax code T18. I have a purchase order to raise on German supplier. Using tax code T18 shows VAT amount on the order. My German supplier invoices me net and i pay him net, yet using T18 it will still show on Purchase Order Process and supplier record that we owe them for the VAT element. How do you resolve this, otherwise surely our accounts will start accumulating in purchase records a mounting debt?

Sam Hogarth · Accepted Answer

Hello Jane, 
 When you raise the invoices from the purchase order these will be posted using the T18 Tax Code. When an invoice is posted using T18 the program will automatically post a purchase credit to reverse off the VAT value. This would then only leave the Net amount of the invoice outstanding and ready to be paid. If you look at this guide it explains these automatic postings. 
 If this has answered your question please click More > Verify Answer. 
 Regards, Sam 
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Post Brexit Tax Codes

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