Import tax codes

Solution Properties

Solution ID:

200427112533011

Last Modified Date:

Thu Sep 28 10:19:58 UTC 2023

Taxonomy Path:

Case category//How do I...//governmental/legislative compliance

Author:

David.Price1@sage.com

Import tax codes - UK only

Description

The UK's withdrawal from the EU means that all imports and exports must now be treated the same for VAT purposes, regardless of their destination or origin.

Version 27.1 and above includes some new tax codes in the range T14 to T19, to make it easy to record EU and non-EU imports.

Cause

Resolution

Tax codes

Once the new update is installed, the first time you open your company, the six new tax codes will be created.
By default, these are in the range T14 to T19 but may differ depending on the tax codes you already use.
These tax codes must have a supplier associated with them, therefore you can only post them using a purchase invoice, PI or purchase credit, PC. It is not possible to post them using a bank payment, BP.

View the tax codes in your software

Click Settings then click Configuration then click Tax Codes.

Code	Description	Box affected on the VAT Return
Code	Description	Net	VAT
T14	Import of goods - No VAT	7	N/A
T15	Purchase of services from ROW - Reverse charge	6 and 7	1 and 4
T16	Purchase of services from ROW - No VAT	7	N/A
T17	Import of goods - Under import reverse charge threshold	7	1 and 4
T18	Import of goods - Postponed VAT	7	1 and 4
T19	Import of goods - VAT not postponed	7	4

NOTE: To find out what postings are made when you post a postponed VAT transaction.

Further information

For full details of how these tax codes are configured, please refer to the default tax codes article.
If you import purchase invoices or credits via CSV or Excel files, or via third party software using Sage Data Objects (SDO), there are further postings you must make when using postponed accounting.
In some scenarios existing tax codes such as T1 or T9 may also be needed. For general guidance on what tax code to use when posting sales and purchase transactions, use our Which tax code should I use? (UK only)

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