Following the BREXIT transition period coming to an end on 31 December 2020, from 1 January 2021, new VAT codes have become available to use for bookkeeping. Please see below details for how to access the new rates on Sage 50, Sage Cloud, QuickBooks and Xero and how to activate Postponed VAT Accounting if you are choosing to use this option:-
You will need to be using version 27.01 to access the new codes. If you are not using this version, you will need to install the update to access these codes.
Sage have created several new codes in their default settings as follows:-
|Code||Description||Box affected on the VAT Return|
|T15||Purchase of services from ROW - Reverse charge||6 and 7||1 and 4|
|T16||Purchase of services from ROW - No VAT||7||N/A|
|T17||Import of goods - Under import reverse charge threshold||7||1 and 4|
|T18||Import of goods - Postponed VAT||7||1 and 4|
|T19||Import of goods - VAT not postponed||7||4|
If you are already using codes within this range, your code numbers may be different. To check the code numbers to use:-
Click Settings, then Configuration, then Tax Codes.
You will need to activate the new codes in QuickBooks. To do this:-
- Select Taxes
- Select Edit VAT
- Select Edit Rates
- You should see a small cog icon above the Action heading on the VAT Rates screen, click this and then select the option to Include Inactive.
- The following rates should then appear:-
- PVA Import 0% (VAT on imports of goods from the EU from 1 Jan 2021)
- PVA Import 20.0% (VAT on imports of goods from the EU from 1 Jan 2021)
- Click on the dots to turn both of these options on.
If you are using Postponed VAT Accounting, you will need to select the PVA Option button on your VAT return (the first return this will be available on will be for the quarter ended 31 January 2021).
You can then enter in the amount shown on your Monthly Postponed Import VAT Statement which should be accessible via your HMRC portal.
- If you want to use Postponed VAT accounting, tick the box shown in:-
- Financial Settings
- Select Accounting Dates and VAT
- Scroll down to Postponed Accounting and tick the box to use postponed accounting
February 23rd, 2021