When you enter transactions its important to use the right tax code otherwise your VAT returns are likely to either need adjustment or contain errors, but often when entering transactions your software won’t tell you what the codes mean, here is a list of Sage codes:
| T0 | Zero rated transactions |
| T1 | Standard rate |
| T2 | Exempt transactions |
| T4 | Sales of goods to VAT registered customers in EC |
| T5 | Lower rate |
| T7 | Zero-rated purchases of goods from suppliers in EC |
| T8 | Standard-rated purchases of goods from suppliers in EC |
| T9 | Transactions not involving VAT |
| T20 | Sales and purchases of reverse charges |
| T22 | Sales of services to VAT registered customers in EC |
| T23 | Zero-rated purchases of services from suppliers in EC |
| T24 | Standard-rated purchases of services from suppliers in EC |
| T25 | Flat rate accounting scheme, purchase and sale of individual capital items > £2,000 |
There are different rates of VAT, depending on the type of goods or services your business provides. At the moment there are three different rates. They are:
- standard rate – 20 per cent
- reduced rate – 5 per cent
- zero rate – 0 per cent
You can check which rate to use on the HMRC Website http://www.hmrc.gov.uk/vat/forms-rates/rates/rates.htm
UK supplier who aren’t VAT registered would use T9 in Sage.
steve@bicknells.net
Business Accountant 
Reblogged this on Steve J Bicknell.
Reblogged this on Global Thinking Business Systems and commented:
Good article to help you review your vat codes.
Thanks. Useful reminder.