VAT on journals

Question

Hi 
 If I use tax code T1 for an expense in a journal, is the VAT element automatically posted? 
 Thank you

Keegan McNaughton · Answer

Hello, 
 Thanks for using Community Hub. 
 If you post a journal with a t1 tax code the whole journal will be classed as VAT. 
 You need to post the journal net and tax values as separate lines in the journal, the net using t9 and the tax using t1. 
 
 If the transaction is from a bank nominal, then using a bank payment would calculate the tax correctly using t1 to calculate the net and vat values without needing to post the extra lines.

If this helps, please click Verify Answer . 
 Regards, 
 Keegan 
 Sage UKI

Sage 50 Accounts

VAT on journals

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