Sage - VAT change - The Book-keepers Forum (UK)

djzolla · Veteran Member

Sage - VAT change

RSBookkeeping · Veteran Member

Hi Paul,

When I've changed it I created a new code because there is a chance that you may get an old invoice coming through at 17.5%.

djzolla · Veteran Member

Hi there

What code did you select?

Paul

Stardoe · Guru

Hi there,

I changed T1 to 20% as this is now the standard rate VAT and Sage uses T1 as default. Then I used T6 for 17.5% for any old invoices or changes I have to make.

HTH
Pauline

djzolla · Veteran Member

HI Pauline

By selecting T1 for the 20% does this not reflect across all your invoices? Thereby changing all the CVAT to date?Or do you have to uncheck the box that says 'include in VAT return'.

Thanks

Paul

-- Edited by djzolla on Saturday 22nd of January 2011 09:57:08 AM

attilabenko · Guru

Hi,

It does not change the VAT amounts entered in the past but everything you enter from the time you change T1 to 20% so if you have any invoices to be entered from before the VAT rate change you will have to change the VAT amount manually. If you have lots of them it might worth to set up a new VAT code for those with 17.5% but either way you will have to change something manually every time you enter old VAT rates, either the amount or the code T1 to let's say T6 as Pauline suggested.
Well, all this is as far as I know and I really hope I am right otherwise I will have a fair bit to do to correct what I have done so far...

HTH

Stardoe · Guru

Hi there,

Yes, Attila is correct. Changing the T1 code to 20% wont change everything you've already done only what you enter from the date you changed it onwards. If you enter invoices that are prior to Jan 4th and you've used T6 as I suggested you will have to change the default tax code to T6 when entering it.

Pauline

FusionAccounts · Member

djzolla wrote:

Hi there

Now that VAT is 20% How do i set this up in Sage please?

I had a look myself and went to Settings/Configuration/Tax codes. Do i change the T1 code to 20%? I tried this under T1 code but it seems to change all my transactions across the board.

Do i need to reconcile my VAT first or....?

Any info would be appreciated

Paul

One of the many benefits of using online bookkeeping software is that the VAT is automatically changed for you so you dont have to worry about setting this up.

Fusion Accounts
Online Accounting - Anytime, Anywhere
http://www.fusionaccounts.com

AICB · Senior Member

Do online accounts packages automatically assign the VAT rate according to the transaction date?

Old, out-of-sequence invoices and receipts are very common from my clients and, on some of my software, I have to set up historic Vat codes so that I can cope with out-of-order documents without having to manually calculate the amounts.

FusionAccounts · Member

Within Fusion Accounts you can still select the previous VAT rate of 17.5% from the drop down box provided.

Online Accounting - Anytime, Anywhere
http://www.fusionaccounts.com

Donna CBK · Senior Member

Quick reminder, when setting up the other Tax Codes just to make sure the box is ticked - include in VAT return.

attilabenko · Guru

VERY good advice,Donna!

djzolla · Veteran Member

Wow thanks for all ther repsonses. I appreciate youm all taking the time:)

Paul