Reduction in VAT for Newspapers and Health products to Zero Rate - Ireland Only

The announcement of a reduction in VAT from 9% to a 0% (zero rate) for:

• newspapers and news periodicals, including digital editions
• Automatic External Defibrillators and period products
• all non-oral Hormone Replacement Therapy
• all non-oral Nicotine Replacement Therapy

Applicable from 01 January 2023. If the reduced rate of VAT applies to your business, there are some simple changes you need to make in your software. Follow the steps in this article to make the changes.

Existing Tax Codes

You can use the already existing 0% (zero rate) code that exists within Sage 200 as default, the Tax Rate 2. Please find our in product help files page for the Default Vat Rates.

Create new tax codes

Some business may prefer to setup a separate Zero Rate code. You can create new tax codes for transactions that qualify for the 0% VAT rate as follows.

Sage 200 Standard / Education

1. Open Settings > Organisational and Financial > VAT Rates.
2. Click Add.
3. Enter the following details:
   
   

   Code	An available VAT Code number
   Name	This can be anything which is meaningful to your business
   VAT Return	This must be selected
   %	Set to 0%
   Input Code	Optional depending on your business setup
   Output Code	Optional depending on your business setup

4. Click OK.

Sage 200 Professional

1. Open Accounting System Manager > Settings > VAT Rates.
2. Click Add.
3. Enter the following details:
   
   

   Code	An available VAT Code number
   Name	This can be anything which is meaningful to your business
   VAT Return	This must be selected
   %	Set to 0%
   Input code	Optional depending on your business setup
   Output Code	Optional depending on your business setup

4. Click OK.

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.