To change the VAT rate in Sage 50 Accounts
To change the standard rate of VAT in Sage Accounts, you should edit the standard rate tax code, T1 by default.
You should make this change on 4 January 2011.
- Open the Settings menu, choose Configuration then click the Tax Codes tab.
- Select T1 then click Edit.
If you use a different tax code for your standard rate of VAT, select the relevant tax code then click Edit.
- In the Rate box, enter 20 then click OK.
To apply the change and return to the Sage Accounts desktop, click Apply then click Close.
If you are prompted to save your changes, click No.
You have successfully changed the standard rate of VAT.
Sage Accounts applies the new rate of VAT to any new transactions that use this tax code. All existing transactions remain unchanged at the old rate of VAT.
To update the VAT values on existing invoices and orders
You must recalculate the VAT on any invoices or orders that have not yet been posted to the ledgers.
The steps below refer to invoices only. You should use the same process to amend any relevant sales orders, purchase orders, credit notes, quotes or proformas.
- Open the Customers module then from the Links pane click Invoice List.
- Double-click the required invoice.
- Click in the Description column of the first standard rated item then press F3 on your keyboard.
For service invoices, click in the Details column then press F3.
- From the Tax Code drop-down list, choose the standard rate tax code.
Although the correct tax code already appears in this box, to recalculate the VAT amount you must select the tax code again.
The VAT amount recalculates using the new rate of VAT.
- To close the Edit Item Line window, click OK.
- Repeat steps 3 to 5 for any other standard rated items on the invoice.If the invoice includes carriage charges and the associated VAT needs adjusting, click the Footer Details tab and manually amend the VAT value. If the carriage VAT value is not accessible you must select the Item VAT Amendable check box in Settings > Company Preferences > VAT tab.
- To save your changes and return to the Invoicing window, click Save then click Close.
You have successfully updated the VAT amounts on the invoice. If required, repeat the process for any other invoices that need to be updated.
To update the VAT values on recurring entries
If you have any memorised or recurring invoices, orders, bank transactions or batch information, you must recalculate the VAT on each of these.