Sage 50 Accounts
In this Video Demo we will walk you through:
For further information on Brexit and Sage 50, please view our Knowledge Base article:
Sales Transactions
Sales invoices can be continued to be processed in the same manor as before selling goods to the UK will now be treated as a non EC country and will use the tax code T14.
Selling goods to Northern Ireland will continue to be treated as a EU Sale and will use the code T4 for goods and T22 for Services
1st January 2021
Create Tax Codes
Use the next available 12 tax codes in sequence. Create them the same as the existing tax code in the Replica column.
Set up Accounts for Contra postings
Versions prior to 27.1 will not create an automatic credit for the postponed accounting VAT. To facilitate in doing this manually we need to create a new Contra account for Customer, Supplier and Bank.
These accounts can be used for recording of postponed VAT for all UK and rest of word suppliers. These accounts should always have a 0 balance after transactions are posted and allocated.
Additional Setup
Processing in Sage 50 V27.0 and below
Net + VAT – Goods and import VAT
Step 1: Post separate purchase invoices for the NET and VAT, as follows:
| Type | Net | T/C | VAT |
| PI – Purchase invoice
(CONS01) |
Zero | T39 – T50 | Import VAT amount |
| SI – Sales invoice (CONC01) | Zero | T39 – T50 | Import VAT amount |
| PI – Purchase invoice
(UK SUPPLIER) |
Goods net amount | T39 – T50 | Zero |
Step 2: Post a payment (PP) and a receipt (SR) for the VAT component to the Contra Bank Account (1210) as below:
| Type | Net | T/C | VAT |
| Zero | T9 – Standard rate | Import VAT amount | |
| PP – allocate to purchase invoices (CONS01) | |||
| Zero | T9 – Standard rate | Import VAT amount | |
| SR – allocate to sales invoice (CONC01) |
Enter in Purchase Invoice
Enter the UK/ ROW supplier invoice-net only (remember to remove the VAT)
Enter in VAT only Purchase Invoice
Enter the Contra VAT amount against CONS01 (contra account you just set up for Suppliers VAT)
Balance on Suppliers account
As you can see the balance on the supplier account is the net value and the VAT is showing separately in your Contra account CONS01.
Contra Sales Invoice VAT only amount
Enter you Contra Sales Invoice VAT only amount
Supplier Payment to The Contra A/C CONS01
Customer Receipt to The Contra A/C CONC01
Accounts show Zero
All accounts show zero after allocations are done.
To make it easier for you we have created a report to help you calculate the figures you need to add to the VAT Return and RTD.
| Supplier Ref | Leave this as it is. |
| Transaction Date | Enter the dates of the VAT period you are reporting for. |
| Tax code (To to T99) | Enter the Tax code you want to report for. For example T39. |
| Tax code | Description | Boxes |
| T39 | Standard rate ROW import (Resale) Postponed VAT | P2 / Z2 / PA2 R1 / Z3 / PA3 |
| T40 | Standard rate ROW import (Non resale) Postponed VAT | P2 / Z2 / PA2 R2 / Z5 / PA4 |
| T41 | Zero rate ROW import (Resale) Postponed VAT | D2 / Z2 / PA2 J1 / Z3 / PA3 |
| T42 | Zero rate ROW import (Non resale) Postponed VAT | D2 / Z2 / PA2 J2 / Z5 / PA4 |
| T43 | Reduced rate ROW import (Resale) Postponed VAT | AC6 / Z2 / PA2 AH5 / Z3 / PA3 |
| T44 | Reduced rate ROW import (Non resale) Postponed VAT | AC6 / Z2 / PA2 AH6 / Z5 / PA4 |
| T45 | Second reduced rate ROW import (Resale) Postponed VAT | AC6 / Z2 / PA2 AH5 / Z3 / PA3 |
| T46 | Second reduced rate ROW import (Non resale) Postponed VAT | AC6 / Z2 / PA2 AH6 / Z5 / PA4 |
| T47 | Livestock rate ROW import (Resale) Postponed VAT | C6 / Z2 / PA2 H5 / Z3 / PA3 |
| T48 | Livestock rate ROW import (Non resale) Postponed VAT | C6 / Z2 / PA2 H6 / Z5 / PA4 |
| T49 | Flat rate compensation ROW import (Resale) Postponed VAT | B6 / Z2 / PA2 G5 / Z3 / PA3 |
| T50 | Flat rate compensation ROW import (Non resale) Postponed VAT | B6 / Z2 / PA2 G6 / Z5 / PA4 |
7. PA1
For businesses selling goods to the UK, excluding those using the Northern Ireland protocol, you should now treat this as a sale to a non-EC country.
For this you would normally use the zero rated export of goods to customers outside EC tax code, T14.
When trading goods with Northern Ireland, to avoid a hard border, the Northern Ireland protocol has been introduced.
Under the Northern Ireland protocol, buying goods located in Northern Ireland should continue to be treated like intra-community acquisitions after 1 January 2021.
Under the Northern Ireland protocol, selling goods to Northern Ireland should continue to be treated like intra-community dispatches and distance sales after 1 January 2021.
There is no change in the way you buy and sell services to and from the UK. However, you must change your vat codes to outside the EU
e.g. If you are selling a service currently they should be using T22 Sales of services to VAT registered customers in EC which should now be T14 Zero rated export of goods to customers outside EC. This would be the same for T23 Zero rated export of goods to customers outside EC.
1. Take a backup
2. Install update 27.1
3. When you launch the correct regional settings are correct at the point of opening
4. Settings – Country Codes
5. When VIES, RTD and Intrastat has been processed then go back in and untick. EU
6. Check Tax codes are set up correctly
7. Please note the tax codes is set to 23%. You will need to change to 21%
8. Enter Commodity Codes
9. Enter EORI number
10. Check Country Codes have XI for NI and XU for GB
If you are processing transactions in December do you need to tick UK in the EU before processing?
You cannot submit the xml file for RTD and vies and Intrastat directly
1. Take a backup
2. Install update 27.1
3. When you launch the correct regional settings are correct at the point of opening
4. Settings – Country Codes
5. When VIES, RTD and Intrastat has been processed then go back in and untick.
6. Check Tax codes are set up correctly
7. Please note the tax codes is set to 21%. You will need to change to 23%
8. Enter Commodity Codes
9. Enter EORI number
10. Check Country Codes have XI for NI and XU for GB
If you are processing transactions in December do you need to tick UK in the EU before processing?
You cannot submit the xml file for RTD and vies and Intrastat directly
If you have not upgraded to Sage 50 version 27.1 you can use the workaround for versions 26 and below . To set up your accounts to allow for the workaround you need to do the following:
You can download the vat codes from here:
If you are trading under the NI protocol then you must amend your own vat number to put GB/XI in front of it. This can be done in Company Setup.
In version 26 and above its in Settings – Company Preferences and you have a box for EORI number.
Versions 25 and below has no specified field and you must choose an unused field.
Layouts will need to be amended to include your EORI number.
Layouts will need to be amended to include your Commodity codes.
To make it easier for you sage have created a report to help you calculate the figures you need to add to the VAT Return and RTD.
Click here for details on downloading and restoring the report
If you have not upgraded to Sage 50 version 27.1 you can use the workaround for versions 26 and below . To set up your accounts to allow for the workaround you need to do the following:
1. Enter all transactions up to December 2020
2. Set up Tax codes for Postponed Accounting –
You can download the list of new tax codes from here.
3. Set up new accounts for
Click here for more information on how to set up new accounts
4. Settings – Countries and Untick UK as EU
If you are trading under the NI protocol then you must amend your own vat number to put GB/XI in front of it. This can be done in Company Setup.
In version 26 and above its in Settings – Company Preferences and you have a box for EORI number.
Versions 25 and below has no specified field and you must choose an unused field.
Layouts will need to be amended to include your EORI number.
Layouts will need to be amended to include your Commodity codes.
8. Customers and Suppliers in the UK to have a default tax code for postponed accounting to T40
9. Incomplete orders and invoices/credits – change tax codes to include.
10. Processing in Sage 50
Net + VAT – Goods and import VAT
11. You cannot submit the xml file for RTD and VIES directly
A4 Commercial invoice – Plain paper (Print or Email)
A summary report showing the net, tax and gross values for each invoice.
Click Here to download the commercial invoice layout.
The file either automatically saves to your Downloads folder or you are prompted to save the file.
Report/Layout download
Backup of:
– LayoutTemplates
When a message appears advising you are about to overwrite data held in your company, click Yes. As this backup only contains a single report, no data is overwritten.
Your new layout can be found in when you print an invoice.