Forum

• # 101824
• Thu 02 Oct 2014 04:23 PM

Hi all

I wonder if anyone would be so kind to guide me on the correct procedure for VAT code's please?

If a business is VAT registered, and purchases goods from a non-registered small business, would these be input as T1 with the VAT taken to 0 or T9 as the supplier is not registered for VAT? 

There is so much conflicting information online about correct codes, I recently posted a Road fund licence to T9 (I got this information from an accounting website) for a mock exam and this was marked wrong as it should have been T2.  I have just read a debate on another forum as to whether non registered business should be T1 or T9... which I thought were mainly wages/salary payments and local Council tax rates etc?

My thinking is that as its an inout into the busines and therefore must be included on the VAT return, therefore it would be T1 with the VAT taken away and input to o.oo?

Hope not too daft a question, but just want to make sure I'm getting on the right track please.

Many thanks

Tracie

• 
  Quote
  

• # 101827
• Thu 02 Oct 2014 06:11 PM

Hi Tracie

I suggest you type in Sage Vat codes into Google. Youshould get a very simple fact sheet that you can print off which will help.  I would add the link to the one I mean on here but i am not sure if we are supposed to.

regards

Liz

• Time can never be replaced. Spend it wisely.

• 
  Quote
  

• # 101829
• Thu 02 Oct 2014 06:18 PM

Crystaltipps said:

“

 

 

Hi Crystaltipps

I would use tax code T0, because if you use Tax Code T9, the transaction will not be shown on the VAT return.  Tax code T9 is generally used for salaries, wages and drawings. My understanding is that all business transactions with the exception of salaries, wages and drawings need to be shown on the vat return.

Hope this helps

Chris

• 
  Quote
  

• # 101839
• Fri 03 Oct 2014 08:02 AM

Hi Liz 

Thank you for replying, I had already googled and found the Simple Accounting fact Sheet, but also found another great one with little pictures on...little things please simple minds!

I've also looked on various forums and there seems to be a bit of conflicting information about non-registered suppliers, HMRC is not that clear to me either.  

Thank you once again, best wishes,

Tracie

• 
  Quote
  

• # 101840
• Fri 03 Oct 2014 08:02 AM

Hi Liz 

Thank you for replying, I had already googled and found the Simple Accounting fact Sheet, but also found another great one with little pictures on...little things please simple minds!

I've also looked on various forums and there seems to be a bit of conflicting information about non-registered suppliers, HMRC is not that clear to me either.  

Thank you once again, best wishes,

Tracie

• 
  Quote
  

• # 101841
• Fri 03 Oct 2014 08:10 AM

Hi Chris

Many thanks for your reply.  I knew it probably would not be correct to post to T9 although reading different forums, a few people seems too, also as you have said T0 and T2 seem to be used, it seems a bit of a grey area, the more I read it seems to crop up quite regulary it would seem, with varying opinions. 

Thanks once again for your help.

Best wishes,

Tracie

• 
  Quote