Hi Barbara,

Thanks for using Sage City.

With any question regarding VAT rates and the VAT Return I would normally suggest checking with HMRC to see what they would expect to see on the VAT Return.

It's my understanding that you would need to show the value of the purchase on the VAT Return in Box 7 without affecting Box 4 (VAT reclaimed), as such a T0 tax code would achieve that.

If this has helped, please click More > Verify Answer.

Regards

Andy
Sage UKI

Hi Barbara,

Thanks for using Sage City.

With any question regarding VAT rates and the VAT Return I would normally suggest checking with HMRC to see what they would expect to see on the VAT Return.

It's my understanding that you would need to show the value of the purchase on the VAT Return in Box 7 without affecting Box 4 (VAT reclaimed), as such a T0 tax code would achieve that.

If this has helped, please click More > Verify Answer.

Regards

Andy
Sage UKI

Many thanks Andy - I did think T0 for the same reasons as you.  I think we will get an invoice from FEDEX with the VAT that HMRC levy on the import at a later stage.

Thanks again