VAT Return

Question

When I include un-reconciled items in my VAT return, it pulls in my previous period VAT Refund as VAT charged on supplies of Goods and services T1. and when I look at the transaction it has a T2 code and no tax on the transaction. Why?

Andy Rickeard · Answer

Hi Ursula,

Thanks for using Community Hub.

Your VAT refund should have been allocated tax code T9, this is the non-vatable code that prevents the transaction from appearing on a VAT Return.

T2 is for transactions that are VAT exempt for example insurance and education, for which the net amount would still appear in boxes 6 for sales and 7 for purchases.

Default tax codes

If this helps, please click Verify Answer.

Regards,

Andy
Sage UKI

Sage 50 Accounts

VAT Return

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