x Want to participate? Join the group to interact
Options
  • State Verified Answer
  • +1 person also asked this people also asked this
  • Replies 1 reply
  • Subscribers 55 subscribers
  • Views 7830 views
  • Users 0 members are here
Browse Forums
Announcements
762
topics
17
replies
Financial year end
77
topics
178
replies
General Discussion UK
7k
topics
19k
replies
General Discussion Ireland
173
topics
308
replies
Install your software
134
topics
367
replies
Making Tax Digital
285
topics
691
replies
Manage your VAT
146
topics
320
replies
Protect and repair your data
43
topics
135
replies
Run your accounts remotely
84
topics
196
replies
Working with the bank
114
topics
292
replies
Graeme Ross

What is the difference between the T20 and T21 tax codes? Used for both sales and purchases?

SOLVED
Posted By

Hi,

I have been using the T21 Tax Code (CIS Reverse Charge - Standard Rate) for any sales invoices going out and any purchase invoices coming in wherever the Reverse charge applies.  Is this correct, do I use the same code for sales and purchase invoices?

Also, there is the T20 Tax Code (Domestic Reverse Charge) - What is this used for?

What is the difference between the T20 and T21, is there circumstances for when one should be used and when the other should be used?

Any help would be appreciated, I have googled and googled and can't quite find a straight answer! 

Thanks

G

Parents
  • +1
    verified answer

    Hi Graeme,

    T21 is the tax code for the CIS domestic reverse charge.  This is the tax code which was introduced due to the legislation changes in March 2021.  By default, the new tax codes that are created are: 

    T21 - where CIS Reverse Charge Standard Rate applies.
    T26 - where CIS Reverse Charge Reduced Rate applies.

    The T20 tax code is used if you trade in mobile phones or computer chips, with other UK VAT registered companies as part of trading or for business use.  If the amount of these goods exceeds £5000 on an invoice, you would account for reverse charge VAT using the T20 tax code.

    I hope this helps.

    Kind regards,

    Rachael

Reply
  • +1
    verified answer

    Hi Graeme,

    T21 is the tax code for the CIS domestic reverse charge.  This is the tax code which was introduced due to the legislation changes in March 2021.  By default, the new tax codes that are created are: 

    T21 - where CIS Reverse Charge Standard Rate applies.
    T26 - where CIS Reverse Charge Reduced Rate applies.

    The T20 tax code is used if you trade in mobile phones or computer chips, with other UK VAT registered companies as part of trading or for business use.  If the amount of these goods exceeds £5000 on an invoice, you would account for reverse charge VAT using the T20 tax code.

    I hope this helps.

    Kind regards,

    Rachael

Children
No Data

*Community Hub is the new name for Sage City