I have a new client who uses Sage and makes use of the stock module. They import some food stuffs from Europe and resell in the UK but some of the products are standard rated for vat. They realise that VAT box 2 has to be completed and has previously done a 'rough' guess by going through the purchases invoices/purchase orders and working out a figure to enter.
Clearly this is not best practice but at least they have made an effort. Just changing the supplier default vat code is not feasible as the supplier will have say 20 product lines and maybe 1 or 2 will attract UK vat. Also the stock code only has one default vat code which would affect the sale as well as the purchase.
Is there a way to use code T7 and T8 as defaults to supply Vat box 2 with accurate figures or is it a case of monitoring PO's/invoices and changing tax codes as and when required which is a bit unsatisfactory when junior / inexperienced staff are involved in the processing.
Box 2 is for VAT on EEC acquisitions. In most cases, people provide their VAT registration number and so pay no VAT on purchases from the EEC.
Where things are purchased then the amount of VAT should be on the invoice and entered on the Tax Code T8 for standard rated purchases. This will automatically be put on box 2 (unless you have changed the VAT settings.)
__________________
For just about anything Sage :- switch to renting, pay-as-you-go sage support, sagecover, upgrades, application integration, reports, layouts, analysis or any other help making life with sage easier/less time consuming Contact me.
