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 [email protected]