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Tax codes in Sage Accounts – Ireland only

Written by Pimbrook Support on .

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

 

T0 Zero rated sales and purchase of goods for resale.  
T1 Standard rated sales and purchase of goods for resale. Currently 23%.  
T2 Exempt sales and purchase of goods for resale.
T3 Reduced rate sales and purchase of goods for resale. Currently 13.5%.
T4 Sales of goods to VAT registered customers in EU.  
T5 Exempt import of goods from suppliers in EU.
T6 Exempt import of goods from suppliers outside EU.  
T7 Zero rated purchases of goods from suppliers in EU.  
T8 Standard rated purchases of goods from suppliers in EU.  
T9 Non-vatable tax code.

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

  
T10 Zero rated purchase of goods for non-resale.  
T11 Standard rated purchase of goods for non-resale.  
T12 Exempt purchase of goods for non-resale.  
T13 Reduced rated purchase of goods for non-resale.  
T14 Zero rated export of goods to customers outside EU.  
T15 Exempt import of goods from suppliers in EU.  
T16 Exempt import of goods from suppliers outside EU.  
T17 Zero rated purchases of goods from suppliers in EU.  
T18 Standard rated purchases of goods from suppliers in EU.  
T19 Zero rated purchases of goods from suppliers outside EU.  
T20 Reverse charges.  
T21 Zero rated purchases of goods from suppliers outside EU.  
T22 Sales of services to VAT registered customers in EU.  
T23 Zero rated purchases of services from suppliers in EU.  
T24 Standard rated purchases of services from suppliers in EU.  
T25 Reduced rated purchases of goods from suppliers in EU.  
T26 Reduced 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:
T27 Second reduced rate sales/purchase of goods for resale  
T28 Second reduced rate sales/purchase of goods for non-resale  
T29 Second reduced rated purchases of goods from EC suppliers  
T30 Second reduced rated purchases of goods from EC suppliers  
T31 Livestock rate sales and purchase of goods for resale  
T32 Livestock rate sales and purchase of goods for non-resale  
T33 Livestock rated purchases of goods from EC suppliers  
T34 Livestock rated purchases of goods from EC suppliers  
T35 Flat rate compensation sales/purchase of goods for resale  
T36 Flat rate compensation sales/purchase of goods non-resale  
T37 Flat rate compensation purchases of goods from EC suppliers  
T38 Flat 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 Code Sale or Purchase Net or VAT amount Box
T0 Sale Net Appears in Total value of sales, excluding VAT box
VAT N/A
Purchase Net Appears in Total value of purchases, excluding VAT box
VAT N/A
T1 Sale Net Appears in Total value of sales, excluding VAT box
VAT Appears in box T1 and VAT charged on supplies of Goods and Services box
Purchase Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T2 Sales Net Appears in Total value of sales, excluding VAT box
VAT N/A
Purchase Net Appears in Total value of purchases, excluding VAT box
VAT N/A
T3 Sales Net Appears in Total value of sales, excluding VAT box
VAT Appears in box T1 and VAT charged on supplies of Goods and Services box
Purchase Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T4 Sales Net Appears in box E1 and Total value of sales, excluding VAT box
VAT N/A
T5 Purchases Net Appears in box E2 and Total value of purchases, excluding VAT box
VAT N/A
T6 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT N/A
T7 Purchases Net Appears in box E2 and Total value of purchases, excluding VAT box
VAT N/A
T8 Purchases Net Appears in box E2 and Total value of purchases, excluding VAT box
VAT Appears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T9 Non-vatable tax code, doesn’t appear on VAT return.
T10 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT N/A
T11 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T12 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT N/A
T13 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T14 Sales Net Appears in Total value of sales, excluding VAT box
VAT N/A
T15 Purchases Net Appears in box E2 and Total value of purchases, excluding VAT box
VAT N/A
T16 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT N/A
T17 Purchases Net Appears in box E2 and Total value of purchases, excluding VAT box
VAT N/A
T18 Purchases Net Appears in box E2 and Total value of purchases, excluding VAT box
VAT Appears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T19 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT N/A
T20 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in boxes T1 and T2 and VAT charged on supplies of Goods & Services box
T21 Purchases Net Appears in Total value of purchases, excluding VAT box
VAT N/A
T22 Sales Net Appears in box ES1 and Total value of sales, excluding VAT
VAT N/A
T23 Purchases Net Appears in box ES2 and Total value of purchases, excluding VAT
VAT N/A
T24 Purchases Net Appears in box ES2, Total value of sales, excluding VAT and Total value of purchases, excluding VAT
VAT Appears in boxes T1 and T2 and VAT charged on supplies of Goods & Services box
T25 Purchases Net Appears in box E2 and Total value of purchases, excluding VAT box
VAT Appears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T26 Purchases Net Appears in box E2 and Total value of purchases, excluding VAT box
VAT Appears in boxes T1 and T2 and VAT due on intra-EU acquisitions box
T27 Sales Net Appears in Total value of sales, excluding VAT box
VAT Appears in box T1 and VAT charged on supplies of Goods and Services box
Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T28 Sales Net Appears in Total value of sales, excluding VAT box
VAT Appears in box T1 and VAT charged on supplies of Goods and Services box
Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T29 Purchases Net Appears in box ES2 and Total value of purchases, excluding VAT
VAT Appears in boxes T2 and VAT due on intra-EU acquisitions
T30 Purchases Net Appears in box ES2 and Total value of purchases, excluding VAT
VAT Appears in boxes T2 and VAT due on intra-EU acquisitions
T31 Sales Net Appears in Total value of sales, excluding VAT box
VAT Appears in box T1 and VAT charged on supplies of Goods and Services box
Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T32 Sales Net Appears in Total value of sales, excluding VAT box
VAT Appears in box T1 and VAT charged on supplies of Goods and Services box
Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T33 Purchases Net Appears in box ES2 and Total value of purchases, excluding VAT
VAT Appears in boxes T2 and VAT due on intra-EU acquisitions
T34 Purchases Net Appears in box ES2 and Total value of purchases, excluding VAT
VAT Appears in boxes T2 and VAT due on intra-EU acquisitions
T35 Sales Net Appears in Total value of sales, excluding VAT box
VAT Appears in box T1 and VAT charged on supplies of Goods and Services box
Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T36 Sales Net Appears in Total value of sales, excluding VAT box
VAT Appears in box T1 and VAT charged on supplies of Goods and Services box
Purchases Net Appears in Total value of purchases, excluding VAT box
VAT Appears in box T2
T37 Purchases Net Appears in box ES2 and Total value of purchases, excluding VAT
VAT Appears in boxes T2 and VAT due on intra-EU acquisitions
T38 Purchases Net Appears in box ES2 and Total value of purchases, excluding VAT
VAT Appears in boxes T2 and VAT due on intra-EU acquisitions

Popular goods and services and the tax codes to use

T0 Zero rated goods and services.
  • Most foods.
  • Children’s clothing.
  • Books and newspapers.
  • Construction of new housing.
  • Passenger transport.
  • Medicines on prescription.
T2 Exempt 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.
T9 Non-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:
Rate Enter 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 return To include transactions with this tax code on the VAT Return, select this check box.
Reverse Charge To 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.
Resale To flag transactions involving purchases for resale, select this check box.
Outside EC or Non EC Transactions To 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 To This 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.
Rate For RTD reporting purposes, select the relevant option.
Description Enter 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.