What is VAT code T9 in Sage?

T9 – Transactions not involving VAT (Any transactions posted with this tax code do not appear on your VAT Return, eg most journals).

What are the T codes in Sage?

Sage Codes

  • 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 is the difference between T0 and T9?

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. T9 is used for expenses which are not purchases, such as wages, which never attract VAT.

Is insurance T9 or T0 in Sage?

In Sage 50 / 50cloud Accounts, T0 is the default tax code for zero-rated transactions, T2 is the default tax code for VAT-exempt transactions and T9 is default tax code for non-VATable transactions.

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Is postage T0 or T9?

T9 = Bank Interest/charges, PAYE, Wages, Dividends, VAT. T0 = Insurance, Subscriptions, Annual filing fees, most foods. T2 = Postage?

When should you use T9 on Sage?

T9 – Transactions not involving VAT (Any transactions posted with this tax code do not appear on your VAT Return, eg most journals). T20 – Sale or purchase of items that fall under the remit of carousel fraud (reverse charge VAT). T22 – Sale of services to customers in the EC.

Are bank charges T0 or T9?

As per TeresaVB’s comment, traditionally the tax code T2 created in a default setup is used for bank/card charges and fees, as they are classified as exempt. T0 is used for zero rated items and T9 is used for non-vatable items.

What are VAT exempt items?

Goods and services exempted from VAT are:

  • Non-fee related financial services.
  • Educational services provided by an approved educational institution.
  • Residential rental accommodation, and.
  • Public road and rail transport.

What VAT code is TV Licence?

A TV Licence is exempt from Value Added Tax (VAT). Therefore the price of a TV Licence will not be affected by any increases or decreases to the VAT rate.

Is Rent T2 or t9?

Rent is NOT a T2 in Sage NOR does it appear ANYWHERE on the VAT Return unless the landlord is charging VAT on your rent and, in this case, it could not be classed as EXEMPT in the question.

How do I find my sage tax code?

On editing by ticking the boxes (as shown below) sage has the ability to include the tax code in the EC listings or reverse charge. Below is a full list of Sage default tax codes. There are 99 codes available.

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Are mots exempt or outside the scope of VAT?

Charges made by the test centre are outside the scope of VAT. If a garage buys in the MOT and charges on the exact amount that it is charged, then it can be treated as a disbursement and no VAT is due.

What VAT code is insurance on Sage?

When entering insurance data into Sage make sure you use the “T2 – exempt” tax code.

What VAT code is congestion charge?

RE: Congestion Charge

Permalink. Hi Julie. Correct T9 is the Sage tax code for items that fall outside the scope of VAT. Bill.

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