Are you coding your VAT entries correctly? Reply

Business Accountant

3D Vat button block cube text

When you enter transactions its important to use the right tax code otherwise your VAT returns are likely to either need adjustment or contain errors, but often when entering transactions your software won’t tell you what the codes mean, here is a list of Sage codes:

T0Zero rated transactions
T1Standard rate
T2Exempt transactions
T4Sales of goods to VAT registered customers in EC
T5Lower rate
T7Zero-rated purchases of goods from suppliers in EC
T8Standard-rated purchases of goods from suppliers in EC
T9Transactions not involving VAT
T20Sales and purchases of reverse charges
T22Sales of services to VAT registered customers in EC
T23Zero-rated purchases of services from suppliers in EC
T24Standard-rated purchases of services from suppliers in EC
T25Flat rate accounting scheme, purchase and sale of individual capital items > £2,000

There are different rates of VAT, depending on the…

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