I am new to using SAGE and am struggling to understand all the tax codes.
For EU purchases I understand I have the option of codes T7 for Zero rated and T8 for standard VAT.
I have used code T7 for the following. NO vat charged as exempt/ 0% in country of origin, No VAT receipt given, lost recipt, purchases from supliers with VAT number (and used our UK VAT no to exempt).
For T8 i have olny used where EU vat has been clearly charged and I have a VAT receipt. However how do I account for this EU vat amount when entering the invoice, as the figure would not be an exact conversion as the bill is not in ? So far I had just entered the full amount as the net figure with 0 tax. Is this right? When doing the VAT return a EU VAT figure however has been created and I do not undertand where from as as there have been no tax amounts entered.
Any advice so this greatly appreciated. I have looked online everywhere but there seems to be no answer to this simple and common question.
