Pimbrook Software

8831: Tax codes in Sage Accounts – Ireland only

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Author: Pimbrook Support

Tax codes in Sage Accounts – Ireland only

Sage Accounts calculates VAT using tax codes. Each tax code has a rate associated with it and the VAT calculates based on this rate.To save you time when posting transactions, you can use the default tax codes already set up in your software. You can edit any of these tax codes or you can add your own.

There are 100 tax codes in total, and for each one you can amend the rate and description. You can also specify if it’s an Irish or EU tax code, and choose if you want to include it in your VAT Return.

Before you proceed any further, check that your computer’s regional settings is set to Ireland and not UK. For more information about how to do this, please refer to article 33741.

 

Sage default tax codes

 

T0Zero rated sales and purchase of goods for resale. 

T1Standard rated sales and purchase of goods for resale. Currently 23%. 

T2Exempt sales and purchase of goods for resale.
T3Reduced rate sales and purchase of goods for resale. Currently 13.5%.
T4Sales of goods to VAT registered customers in EU. 

T5Exempt import of goods from suppliers in EU.
T6Exempt import of goods from suppliers outside EU. 

T7Zero rated purchases of goods from suppliers in EU. 

T8Standard rated purchases of goods from suppliers in EU. 

T9Non-vatable tax code.

Note: If you post any transactions with this tax code, they don’t appear on your VAT Return.

 

T10Zero rated purchase of goods for non-resale. 

T11Standard rated purchase of goods for non-resale. 

T12Exempt purchase of goods for non-resale. 

T13Reduced rated purchase of goods for non-resale. 

T14Zero rated export of goods to customers outside EU. 

T15Exempt import of goods from suppliers in EU. 

T16Exempt import of goods from suppliers outside EU. 

T17Zero rated purchases of goods from suppliers in EU. 

T18Standard rated purchases of goods from suppliers in EU. 

T19Zero rated purchases of goods from suppliers outside EU. 

T20Reverse charges. 

T21Zero rated purchases of goods from suppliers outside EU. 

T22Sales of services to VAT registered customers in EU. 

T23Zero rated purchases of services from suppliers in EU. 

T24Standard rated purchases of services from suppliers in EU. 

T25Reduced rated purchases of goods from suppliers in EU. 

T26Reduced rated purchases of goods from suppliers in EU. 

If you’ve installed the September 2016 Improvements for Sage 50 Accounts, the following additional tax codes are set up by default:
T27Second reduced rate sales/purchase of goods for resale 

T28Second reduced rate sales/purchase of goods for non-resale 

T29Second reduced rated purchases of goods from EC suppliers 

T30Second reduced rated purchases of goods from EC suppliers 

T31Livestock rate sales and purchase of goods for resale 

T32Livestock rate sales and purchase of goods for non-resale 

T33Livestock rated purchases of goods from EC suppliers 

T34Livestock rated purchases of goods from EC suppliers 

T35Flat rate compensation sales/purchase of goods for resale 

T36Flat rate compensation sales/purchase of goods non-resale 

T37Flat rate compensation purchases of goods from EC suppliers 

T38Flat rate compensation purchases of goods from EC suppliers 

Which boxes the tax codes affect on the VAT Return

 

Tax code T23 appears correctly on the VAT Return, however we’re currently investigating an issue where T23 transactions appear in the wrong box on the Return of Trading Details (RTD). Read more >

Tax CodeSale or PurchaseNet or VAT amountBox
T0SaleNetAppears in Total value of sales, excluding VAT box
VATN/A
PurchaseNetAppears in Total value of purchases, excluding VAT box
VATN/A
T1SaleNetAppears in Total value of sales, excluding VAT box
VATAppears in box T1 and VAT charged on supplies of Goods and Services box
PurchaseNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T2SalesNetAppears in Total value of sales, excluding VAT box
VATN/A
PurchaseNetAppears in Total value of purchases, excluding VAT box
VATN/A
T3SalesNetAppears in Total value of sales, excluding VAT box
VATAppears in box T1 and VAT charged on supplies of Goods and Services box
PurchaseNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T4SalesNetAppears in box E1 and Total value of sales, excluding VAT box
VATN/A
T5PurchasesNetAppears in box E2 and Total value of purchases, excluding VAT box
VATN/A
T6PurchasesNetAppears in Total value of purchases, excluding VAT box
VATN/A
T7PurchasesNetAppears in box E2 and Total value of purchases, excluding VAT box
VATN/A
T8PurchasesNetAppears in box E2 and Total value of purchases, excluding VAT box
VATAppears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T9Non-vatable tax code, doesn’t appear on VAT return.
T10PurchasesNetAppears in Total value of purchases, excluding VAT box
VATN/A
T11PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T12PurchasesNetAppears in Total value of purchases, excluding VAT box
VATN/A
T13PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T14SalesNetAppears in Total value of sales, excluding VAT box
VATN/A
T15PurchasesNetAppears in box E2 and Total value of purchases, excluding VAT box
VATN/A
T16PurchasesNetAppears in Total value of purchases, excluding VAT box
VATN/A
T17PurchasesNetAppears in box E2 and Total value of purchases, excluding VAT box
VATN/A
T18PurchasesNetAppears in box E2 and Total value of purchases, excluding VAT box
VATAppears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T19PurchasesNetAppears in Total value of purchases, excluding VAT box
VATN/A
T20PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in boxes T1 and T2 and VAT charged on supplies of Goods & Services box
T21PurchasesNetAppears in Total value of purchases, excluding VAT box
VATN/A
T22SalesNetAppears in box ES1 and Total value of sales, excluding VAT
VATN/A
T23PurchasesNetAppears in box ES2 and Total value of purchases, excluding VAT
VATN/A
T24PurchasesNetAppears in box ES2, Total value of sales, excluding VAT and Total value of purchases, excluding VAT
VATAppears in boxes T1 and T2 and VAT charged on supplies of Goods & Services box
T25PurchasesNetAppears in box E2 and Total value of purchases, excluding VAT box
VATAppears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T26PurchasesNetAppears in box E2 and Total value of purchases, excluding VAT box
VATAppears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T27SalesNetAppears in Total value of sales, excluding VAT box
VATAppears in box T1 and VAT charged on supplies of Goods and Services box
PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T28SalesNetAppears in Total value of sales, excluding VAT box
VATAppears in box T1 and VAT charged on supplies of Goods and Services box
PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T29PurchasesNetAppears in box ES2 and Total value of purchases, excluding VAT
VATAppears in boxes T2 and VAT due on intra-EU acquisitions
T30PurchasesNetAppears in box ES2 and Total value of purchases, excluding VAT
VATAppears in boxes T2 and VAT due on intra-EU acquisitions
T31SalesNetAppears in Total value of sales, excluding VAT box
VATAppears in box T1 and VAT charged on supplies of Goods and Services box
PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T32SalesNetAppears in Total value of sales, excluding VAT box
VATAppears in box T1 and VAT charged on supplies of Goods and Services box
PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T33PurchasesNetAppears in box ES2 and Total value of purchases, excluding VAT
VATAppears in boxes T2 and VAT due on intra-EU acquisitions
T34PurchasesNetAppears in box ES2 and Total value of purchases, excluding VAT
VATAppears in boxes T2 and VAT due on intra-EU acquisitions
T35SalesNetAppears in Total value of sales, excluding VAT box
VATAppears in box T1 and VAT charged on supplies of Goods and Services box
PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T36SalesNetAppears in Total value of sales, excluding VAT box
VATAppears in box T1 and VAT charged on supplies of Goods and Services box
PurchasesNetAppears in Total value of purchases, excluding VAT box
VATAppears in box T2
T37PurchasesNetAppears in box ES2 and Total value of purchases, excluding VAT
VATAppears in boxes T2 and VAT due on intra-EU acquisitions
T38PurchasesNetAppears in box ES2 and Total value of purchases, excluding VAT
VATAppears in boxes T2 and VAT due on intra-EU acquisitions

Popular goods and services and the tax codes to use

T0Zero rated goods and services.
  • Most foods.
  • Children’s clothing.
  • Books and newspapers.
  • Construction of new housing.
  • Passenger transport.
  • Medicines on prescription.
T2Exempt goods and services.
  • Some land and building sales.
  • Some finance charges.
  • Education and some training.
  • Health.
  • Betting and gaming.
  • Burials and cremation.
  • Postal services.
  • Insurance.
T9Non-vatable items.
  • Wages.
  • Bank or cash transfers.
  • Capital.
  • Loans, dividends and gifts of money.

To create or amend a tax code

  1. Click Settings, click Configuration, then click Tax Codes.
  2. Select the required tax code then click Edit.
  3. Complete the Edit Tax Code window as follows:
RateEnter the required percentage. For example, to set up a 23% VAT rate, enter 23.00.

If you select the Enable EC Code check box, the Rate box isn’t active.

Include in VAT returnTo include transactions with this tax code on the VAT Return, select this check box.
Reverse ChargeTo flag sale or purchase items that fall under the remit of carousel fraud, for example, mobile phones, select this check box. Don’t select this for standard reverse charge transactions.
ResaleTo flag transactions involving purchases for resale, select this check box.
Outside EC or Non EC TransactionsTo flag transactions that occur outside EU territories, select this check box.
Enable EC Code or EC code If this is an EU tax code, select this check box. Then choose the relevant options from the drop-down lists.
Link ToThis option is only available for EU purchase tax codes.If you want to use this tax code to record notional VAT, choose the required tax code that you want to link to. Notional VAT calculates based on the rate of the code you link to.
RateFor RTD reporting purposes, select the relevant option.
DescriptionEnter a description for the tax code.
  1. Click OK, then click Apply.
  2. click Close and if you’re prompted to save the changes, click Yes.

 

 

 

 

 

 

 


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