Important Changes to VAT from 1st January 2010
As you may already be aware the standard rate of VAT has increased back to the original rate of 17.5%
In order to comply you will need to make some manual changes to your software.
To change the VAT rate in Sage Accounts
- Open the Settings menu, choose Configuration then click the Tax Codes tab. Sage Accounts v9 and below - Open the Settings menu then choose Tax Codes. The tax code information appears.
- Select T1 then click Edit.
Note: If you use a different tax code for your standard rate of VAT, select the relevant tax code then click Edit. The Edit Tax Code window appears. - Enter 17.50 in the Rate box then click OK. The Edit Tax Codes window closes.
- To apply the change, and return to the Sage Accounts desktop, click Apply then click Close.
Tip: If you are prompted to save your changes, click No. Sage Instant Accounts v14 - Click Save then click Close.
You have successfully changed the standard rate of VAT.
Completing December Postings
If any invoices relating to December or prior are received or issued after changing the VAT rate, use a new VAT code T10.
To set up a new VAT code T10…
- Open the Settings menu, choose Configuration then click the Tax Codes tab.
Sage accounts v9 and below – Open the Settings menu then choose Tax Codes.
The tax code information appears. - Select T10 then click Edit.
Note: If you use a different tax code for your standard rate of VAT, select the relevant tax code then click Edit.
The Edit Tax Code window appears. - Enter 15.00 in the Rate box.
Tick box to include in VAT entries then click OK.
The Edit Tax Code window closes. - To apply the change and return to the Sage Accounts desktop, click Apply then click Close.
Tip: If you are prompted to save your changes, click No.
Sage Instant Accounts v14 – Click Save then click close.
You may have already changed your T10 to 17.5 % when the VAT rate decreased in December 2008. If this is the case then change the VAT rate as per above for T1.