UK VAT Rate changes in Sage

The VAT rate has reverted back to 17.5% as of 1st January 2010

In your Sage program you will need to:

  • Go to Settings (at the top)
  • Configuration
  • Tax Codes
  • Then edit T1 to 17.5, SAVE

You should then edit whichever code you have been using (perhaps T3 or some other code) for the 17.5% during 2009 and change this to 15.

During January, use this latter code for anything relating to December 2009 or prior.  Use the T1 at 17.5% for anything for January onwards.

PLEASE BEAR IN MIND:

This will not automatically change the VAT on any recurring entries such as Direct Debits, etc.  You will need to go into each one and adjust the VAT accordingly.  You may find some suppliers don’t take the right amount straight away – check your bank statement first.

Neither will it change the VAT on any memorized invoice layouts – you will need to create new ones.

Contact IT Ambulance if you need any further assistance on 0800 0214 999