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Set up VAT

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Summary

Setting up VAT in Sage Accounting.

Description

Before you enter any transactions, and to make sure your VAT calculates correctly on the VAT return, you must make sure your VAT is set up correctly.

This explains how to:

  • Enter your VAT scheme and VAT registration number
  • Choose how often you submit VAT returns
  • Set up defaults to reduce errors
  • Set up VAT for trading abroad

Resolution

Enter your VAT scheme and registration number

  1. From Settings, choose Business Settings, then Accounting Dates & VAT.
  2. In the VAT Details section, check the following:
    • VAT scheme - Check you have selected the correct scheme
    • Submission frequency - Choose how often you submit a VAT Return to the Revenue. This depends on how you registered with the Revenue
    • VAT number - Your VAT registration number

 NOTE: If you've just registered for VAT, we'd recommend to fill in this informatio first before priocessing any transactions. 

Set up VAT defaults in Sage Accounting

To make sure you're using the correct VAT rate, consider setting up default VAT rate for things you use often, like products and services or ledger accounts.

Set up VAT for trading abroad

Sales to EU customers

This is an optional scheme to help you report and pay all EU VAT through a single return instead of having to register and pay VAT in each country you sell to. Read about EU VAT e-commerce rules

If you want to use this scheme, choose

  • Use destination VAT for sales to EU consumers

Postponed accounting

If you import goods from outside the EU, you can use Postponed Accounting.

With postponed accounting, you can declare and recover import VAT in the same VAT return. This is instead of paying import VAT on or soon after goods arrive and claiming it on your next VAT return.

The VAT is recorded as both a sale and purchase on your VAT return, effectively cancelling each other out.

If you want to sue postponed accounting for all you imports, you choose to set this be default. Choose

  • Use postponed accounting to deal with import VAT


Related Solutions

´╗┐Postponed accounting for Irish businesses