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Brexit - Trading with the United Kingdom after 1 January 2021 when using Sage 50cloud Accounts v27.1 - ROI only

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Summary

After the 1 January 2021, if you are based in the Republic of Ireland, some new rules apply when trading with companies in the United Kingdom.

Description

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Trading goods with the UK

Buy goods from the UK - Postponed Accounting

For businesses buying goods from the UK, excluding those using the Northern Ireland protocol, postponed accounting has been introduced to help the cashflow on businesses that previously didn’t have to factor in paying Import VAT. Postponed accounting can now also be used for imports from non EU countries.

To help, Sage 50cloud Accounts v27.1 introduces twelve new tax codes that you can use to record the import of goods.

NOTE: By default, these are T39 and T50 but may differ depending on the tax codes you already use.

Tax code Description
VAT Return
RTD
Net
VAT
T39 Standard rate ROW import (Resale) Postponed VAT

'Total value of purchases, excluding VAT' / PA1

'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2

P2 / Z2 / PA2 / R1 / Z3 / PA3

T40 Standard rate ROW import (Non resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2
P2 / Z2 / PA2 / R2 / Z5 / PA4
T41 Zero rated ROW import (Resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2 D2 / Z2 / PA2 / J1 / Z3 / PA3
T42 Zero rated ROW import (Non resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2  D2 / Z2 / PA2 / J2 / Z5 / PA4
T43 Reduced rate ROW import (Resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2  AC6 / Z2 / PA2 / AH5 / Z3 / PA3
T44 Reduced rate ROW import (Non resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2  AC6 / Z2 / PA2 / AH6 / Z5 / PA4
T45 Second reduced rate ROW import (Resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2  AC6 / Z2 / PA2 / AH5 / Z3 / PA3
T46 Second reduced rate ROW import (Non resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2  AC6 / Z2 / PA2 / AH6 / Z5 / PA4
T47 Livestock rate ROW import (Resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2  C6 / Z2 / PA2 / H5 / Z3 / PA3
T48 Livestock rate ROW import (Non resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2  C6 / Z2 / PA2 / H6 / Z5 / PA4
T49 Flat rate compensation rate ROW import (Resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2  B6 / Z2 / PA2 / G5 / Z3 / PA3
T50 Flat rate compensation ROW import (Non resale) Postponed VAT 'Total value of purchases, excluding VAT' / PA1 'VAT due on intra-EU acquisitions and postponed VAT' / T1 / T2 B6 / Z2 / PA2 / G6 / Z5 / PA4

Sell goods to the UK

For businesses selling goods to the UK, excluding those using the Northern Ireland protocol, you should now treat this as a sale to a non-EC country. 

For this you would normally use the zero rated tax code, T0.


Trading goods with Northern Ireland - Northern Ireland protocol

When trading goods with Northern Ireland, to avoid a hard border, the Northern Ireland protocol has been introduced.

Buy goods from Northern Ireland

Under to the Northern Ireland protocol, buying goods located in Northern Ireland should continue to be treated like it was before Brexit, under intra-community acquisitions.

Sell goods to Northern Ireland

Under to the Northern Ireland protocol, selling goods to Northern Ireland should continue to be treated like it was before Brexit, under intra-community acquisitions.


Buy and sell services

There is no change in the way you buy and sell services to and from the UK. 

Please continue to process services as you always have. 


This article provides general rather than specific guidance to assist all of our customers, including both in the United Kingdom and Republic of Ireland. We always do our best to make sure that the information is correct but as it's general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid for our general customer base at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements. For VAT, customs and excise and duties enquiries you should contact The Revenue. In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.
The VAT or tax codes used in this article are based on the default or recommended codes set up in the software. These may be different in your software.