Hi,

Thanks for using Sage City.

With the tax code troubleshooters we try to cover most common scenarios, but there are always scenarios that aren't covered.

In the case you've outlined I would suggest contacting HMRC VAT enquiries, they can advise the liability and how it should affect your VAT Return, if it should affect it at all. Once you know the liability and how it should affect the VAT Return, we can advise which tax code will give the required result.

Kind regards,

Andy

Sage UKI