VAT Reverse Charge

VAT Reverse Charge

Guidance on setting up new VAT codes to use for VAT Reverse Charge as well as editing layouts to declare when Reverse Charge is used


Creating a new VAT Code for Revcerse Charge:
Once logged in to your company in Sage 50 Accounts, go to Settings > Configuration > Tax Codes.
It is recommended to edit T21 and T26, but it is up to you which codes to use.
For 20%

 

For 5%



You can then use these VAT codes on your invoices as needed.

Editing your layouts to include a message about the Reverse Charge:
Select the document layout you want to amend, then click Edit.
On the menu bar click Report, click Report Properties.
Enter a new report name and description, then click OK.
Click Report, then click Joins.
Click and drag the TAX_CODE table into the central pane near the INVOICE_ITEM table.
Click and drag the TAX_CODE variable from the INVOICE_ITEM table to the TAX_CODE variable in the TAX_CODE table.
Select the join between the two tables and changeboth Join Types to ParentOuter, then click OK.
Click Toolbox, then click Add Expression.
Click where you want the message to appear, then enter the following expression:

sum(TAX_CODE.IS_REVERSECHARGE = 1 ? INVOICE_ITEM.net_AMOUNT : 0.0) > 0.00 ? "* Indicates REVERSE CHARGE SUPPLY - Customer to pay VAT to HMRC" : sum(TAX_CODE.IS_REVERSECHARGE = 1 ? INVOICE_ITEM.net_AMOUNT : 0.0) < 0.00 ? "* Indicates REVERSE CHARGE SUPPLY - Customer to reclaim VAT to HMRC" : " "

Select INVOICE_ITEM.QUANTITY, then in the Properties pane, under Conditional Formatting click finder button .
Click the Filter tab, click Edit, then create the following filter.

INVOICE_ITEM.DESCRIPTION LIKE "%REVERSE CHARGE VAT TO BE PAID%"

In the Properties tab choose to Suppress Printing, then click OK
Repeat steps 1 to 3 for each of the following variables in the ITEM_NUMBER footer section:

INVOICE_ITEM.FOREIGN_UNIT_PRICE
INVOICE_ITEM.FOREIGN_DISCOUNT_AMOUNT
INVOICE_ITEM.FOREIGN_NET_AMOUNT
INVOICE_ITEM.TAX_RATE
INVOICE_ITEM.FOREIGN_TAX_AMOUNT
On the menu bar click File, click Save As.
Enter a new file name then click Save.
On the menu bar click File, then click Exit.
 





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