One of the many things affected by Brexit is trade, especially tax codes. With this change, Sage has implemented new codes as well as changing the use of older tax codes. The changes made by the impact of Brexit are highlighted in the tables below (these apply only to England Wales and Scotland).
Sales goods
| Tax Codes | Before Brexit | After Brexit changes |
| T0 (box 6)
T1 (boxes 1 and 6) T2 (box 6) |
No VAT registration provided | T0 (box 6) – zero rates transactions when the sale is zero rated |
| T4 (boxes 6 and 8) | When you sell a good to VAT registered customers in the European Commission | T0 (box 6) – zero rates transactions when the sale is zero rated |
Sales services
| Tax Codes | Before Brexit | After Brexit changes |
| T1 (boxes 1 and 6) | No VAT registration provided | No changes |
| T22 (box 6) | When you sell a service to VAT registered customers in the European Commission | T0 (box 6) – zero rates transactions when the sale is zero rated |
Purchase goods
| Tax Codes | Before Brexit | After Brexit changes |
| T7 (boxes 7 and 9) | When you purchase a good to VAT registered customers in European Commission | T17 (boxes 1, 4 and 7) includes the import of goods under the import reverse charge threshold (£135)
T18 (boxes 1, 4 and 7) includes the import of goods with Postponed VAT Accounting T14 (box 7) includes the I import of goods with no VAT T19 (boxes 4 and 7) includes the import of goods where there is VAT, not Postponed VAT Accounting |
| T8 (boxes 2, 4, 7 and 9) | Standard rated purchases of goods from suppliers in the European Commission |
Purchase service
| Tax Codes | Before Brexit | After Brexit changes |
| T23 (boxes 6 and 7) | No VAT | T16 (box 7) includes services from the rest of the world with no VAT |
| T24 (boxes 1, 4, 6 and 7) | Reverse charge | T15 (boxes 1, 4, 6 and 7) includes services from the rest of the world with reverse charge |
Sage have made it clear with the change to the tax codes to make an easy transition after Brexit for all businesses.
For more information to the changes to Sage codes after Brexit, click here.
If you are currently struggling to file your tax returns, get in touch with us at AIT Accountants, we will be able to take these burdens off your hands. Contact us at enquiries@aitaccountants.co.uk
0 Comments