Sage 50 VAT T Codes

Sage 50 VAT T Codes.
Sage 50 Accounts book keeping software populates its VAT return by using tax (T) codes to indicate which VAT rate to apply to each transaction. Whenever you post a transaction in Sage 50 Accounts you must enter the relevant T code:

T0 – Zero rated transactions (eg most food, books, new builds, public transport)
T1 – Standard rated transactions – Currently 20%.
T2 – Exempt transactions (eg postage, insurance, finance charges)
T4 – Sale of goods to customers in the EC.
T5 – Lower rated transactions – Currently 5%.
T7 – Zero rated purchases from suppliers in the EC.
T8 – Standard rated purchases of goods from suppliers in the EC (Sage then automatically populates reverse charge VAT in Boxes 2 and 4 on the VAT Return).
T9 – Transactions not involving VAT (Any transactions posted with this tax code do not appear on your VAT Return, eg most journals).
T20 – Sale or purchase of items that fall under the remit of carousel fraud (reverse charge VAT).
T22 – Sale of services to customers in the EC.
T23 – Purchase of zero rated or exempt services from suppliers in the EC.
T24 – Purchase of standard rated services from suppliers in the EC (Sage then automatically populates reverse charge VAT in Boxes 2 and 4 on the VAT Return).
T25 – Sale or purchase of capital goods over £2,000 (for Flat Rate VAT scheme)

To view or amend the tax codes:    Sage > Settings > Configuration > Yes to close all other open windows > Tax Codes.
If you require further Sage support, perhaps by migrating to the cloud version or by using Sage drive, please do not hesitate to contact us.

Disclaimer - All information in this post was correct at time of writing.