T22 – Sale of services to customers in the EC. T23 – Purchase of zero rated or exempt services from suppliers in the EC. T24 – Purchase of standard rated services from suppliers in the EC (Sage then automatically populates reverse charge VAT in Boxes 2 and 4 on the VAT Return).
What are the T codes in Sage?
- T0 – Is the zero rate (0%)
- T1 – Is the current standard rate.
- T2 – Is the exempt transactions (N/A or 0% depending on the transaction)
- T4 – Is the VAT on sales registered EC customers.
- T5 – Is the reduced rate VAT at 5%
- T7 – Is the zero rated purchases from EC suppliers.
What tax code is exempt on Sage?
T2: Exempt from VAT. For example, insurance and financial services. T4: Sales of goods to VAT registered customers in the European Community (EC). T5: Lower-rate VAT, usually 5 per cent.
What is the difference between T0 and T2?
However to be correct T2 is usually used for VAT exempt purchases (such as stamps) which HMRC have made exempt from VAT. T0 should be used for purchases which are zero-rated, ie purchases which are not VAT-able – eg food items which do not attract VAT.
How do I find my sage tax code?
T24 – Purchase of standard rated services from suppliers in the EC (Sage then automatically populates reverse charge VAT in Boxes 2 and 4 on the VAT Return). To view or amend the tax codes: Sage > Settings > Configuration > Yes to close all other open windows > Tax Codes.
How do I enter reverse charge VAT on Sage?
If required, you can set up a different tax code to use for your reverse charge transactions.
- Settings > Configuration > Tax Codes.
- Select the required tax code > Edit.
- Complete the Edit Tax code window as follows: Rate. This must be left as 0.00. Include in VAT return. Select this check box. Reverse Charge.
What is T15 VAT code?
T15 – Purchase of services from ROW – Reverse charge. T16 – Purchase of services from ROW – No VAT. T17 – Import of goods – Under import reverse charge threshold.
Are salaries VAT exempt or zero rated?
Petrol and diesel, because these are zero-rated supplies. Transport by road and rail, because these are exempt supplies. Any purchases that you don’t have a VAT invoice for. Salaries and wages, because these are exempt supplies.