Svetlana said:
“
Hello,
I hope everybody is having a nice weekend despite the weather.
I wonder if anybody knows what VAT code should be used in Sage for non-VAT registered suppliers? HMRC definition is pointing towards T9, however in such a case those purchases would not appear on a VAT return in box 7. Perhaps T0 is the correct one? I am confused, because my training provider doesn't cover this topic in their books. Can anybody help, please?
”
Hi Svetlana,
I always read the posts on here but this is the first time i've given any advice!
T9 should only be used for items that are not in any way related to VAT. ie. Payroll or loan repayments.
I read a discussion on here previously about whether vatable supplies from a non vat registered supplier should be posted as T1 (I think thats the standard vat code, my mind has gone blank now) and i think I would agree with that. Obviously the vat amount would be zero regardless and the vat box when posting the invoice would be adjusted accordingly.
My conclusion is that either T0 or T1 would ok, and both would be included in box 7. Going by that previous post, there are a mix of people going for either of those.
I hope I have helped even though i've not been completely decisive!
Mike
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