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VAT in Sage Accounting Start

Created on  | Last modified on 

Summary

How to handle VAT in Accounting Start.

Resolution

Supported VAT schemes

Verify your VAT scheme upon sign-up; ensure accuracy before transactions to avoid VAT errors.

We support the following VAT schemes:

If your company isn't VAT registered, select Not Registered.

Read about how to get set-up for VAT.


How we record VAT in your ledger accounts

This clarifies VAT recording in your ledger for understanding in financial reports and Revenue payment

Standard VAT records VAT upon invoice creation, while Cash Accounting records VAT upon payment receipt, altering ledger transactions.


VAT rates to use

Depending on what you buy or sell, there are several different VAT rates, which apply.

To keep things simple, we set-up and update the VAT rates for you. Simply choose the appropriate VAT rate for your transaction. The VAT rates you can choose are:

  • Standard – 23%
  • Reduced Rate – 13.5%
  • Second Reduced Rate – 9%
  • Zero Rated – 0%
  • Exempt – transactions are exempt from VAT. The net amount still appears on your VAT Return
  • No VAT – for transactions not involving VAT. These don't appear on your VAT Return

Other VAT rates

You can't create your own VAT rates (such as the T code in Sage 50).

Some businesses use a sub-scheme to calculate VAT differently to the Standard 23%. So to record transactions with a different VAT rate:

  • Enter the transaction and select the Standard rate

  • Change the VAT value to the correct amount. 

    This ensures that the transaction shows on your next VAT Return, and the amount of VAT is correct

Read about VAT rates


The VAT Return

Revenue will need regular VAT return submissions. This could be once a month, quarterly or once a year.

We automatically work out VAT when you enter your transactions. The calculations take account of:

  • Your VAT scheme

  • The VAT rate you select

  • The location and VAT number of the customer or supplier the transaction is for

Read about how each value on the VAT return calculates.

Depending on when your VAT return is due, you'll need to:

  • Create the VAT return from Sage Accounting

  • Submit it to Revenue

Read about how to create and submit a return to Revenue.

Related Solutions

Set up VAT