Hi Yvonne,

When you run the EC Sales list in Sage 50 Accounts, you can select the Triangulated? check box if the transaction was triangulated.

You can post these transactions with the relevant EC Sales List tax codes, T4 or T22.

Full info on how to calculate and save your EC Sales List, including triangulated transactions, here.

Hi Paul, with regards to the ECSL I have flagged the transactions as triangulated however T4 transactions still appear in boxes 6 and 8 on the VAT return which ideally I want to stop as doing manual adjustments always increases the risk of an error and it also saves time on the VAT return preparation. If I am able to set up my own T code it will also be highlighted on any reports I produce where I use the VAT codes as part of the analysis. This is also true of the supplier invoices that will enter the chain next quarter with regard to the triangulated supply (we get our customers to pay up front so we often have back to front paperwork), triangulated supplies are zero rated to the intermediate supplier but if I use T7 it will still end up in boxes 7 and 9 on the VAT return. The crux of this is I should like to use my own T codes for triangulated transactions so that they appear on the ECSL but not on the VAT return - but I can't seem to get them to work at the moment. I already have to do all foreign transactions outside of Sage in excel and then batch post, I was hoping to avoid yet another excel workbook!!

Hi Yvonne,

It’s correct that these transactions appear on both your EC Sales list and your VAT return, as the VAT return needs to include the total value of EC Sales, excluding VAT.

As these figures don’t include VAT, you don’t need to make adjustments to your VAT return as they don’t affect the final VAT return figure. I.e. box 5, which is the Net VAT to be paid to / reclaimed  from HMRC by you - This is the difference between Box 3 and Box 4.

You can access a complete guide to VAT reconciliation using the Standard VAT scheme here.

However, you can set up and use your own tax code/s if you wish. You can set these up in Settings > Configuration > Tax Codes. To ensure they aren’t included in your VAT return but are included in your EC Sales list, you should clear the Include in VAT return check box and select the Enable EC Code check box.

Full info on how to set up new tax codes here.

I recommend that you check with HMRC that it is ok for these transactions to be omitted from your VAT return.

Hi Paul,

thank you for your response, below are the steps for an intermediate supplier where all parties satisfy the conditions to use the simplified supply procedure - this is taken direct from www.gov.uk


"To use the simplified procedure if you are a UK intermediate supplier making supplies of goods to a customer in another Member State, you must do all of the following:

1 Use your UK VAT registration number to allow your EC supplier to zero-rate the supply of goods in the Member State from which the goods were dispatched.
2 Issue a VAT invoice to your customer containing all the details normally required for intra-EC supplies.
3 Include the supply on your EC Sales List (see Section 17), quoting the VAT number of your customer in the Member State of destination of the goods.
4 Enter the total value of triangular supplies to each EC customer in that quarter on your EC Sales List on a single line separately from any other intra-EC supplies to that customer.
5 Identify your triangular transactions by inserting the figure 2 in the indicator box (the notes on the reverse of the EC Sales List give further details).
6 Omit details of triangular transactions on your UK VAT Return and Intrastat Supplementary Declaration (see Section 18). "


As you can see point 3 states that the sale (supply) goes on the ECSL and point 6 states that the transaction is omitted from the UK VAT return.

To this end I should like to set up EU triangulation transaction T codes that report on the ECSL and not on the VAT return. I have been trying to do this - I have set up my own T code before, (I have set up a code for non VAT registered suppliers [in my case I called it T12] so that the expenditure reports in box 7 of the VAT return).

Maybe it's something Sage might like to think about for a future update (mind you in two years time it may not be a problem once we leave the Customs Union *bangs head on desk* )

That’s great, thanks Yvonne.

You can log this as a suggestion to improve our Sage Accounts software on our Ideas Community: https://communities.sage.co.uk/ideas/

To log your idea select Sage 50 Accounts and then Submit an idea.

Once logged, we’ll be able to use your idea and help us to shape your Sage software. Other customers will also be able to vote on your idea.

Hi Paul

Idea submitted!

Just to be clear - there is no way to do this at the moment through the current T codes that I can manually set up?

I posted in the forum in the hope that someone out there may have hit the same problem and had a solution.

Yvonne

That’s great Yvonne.

The workaround would just be the one I gave earlier, to set up your own tax code with the Include in VAT return check box cleared and the Enable EC Code check box selected.

This will ensure that transactions posted with this tax code will not appear on your VAT return but will appear on your EC Sales list and you can then flag them for triangulation.