01675 430128 | 0121 557 2300 info@centurysoftware.co.uk

There are two new VAT rates applicable in the UK post 31/12/20 to use when trading outside the UK.

  • 16 – Purchase Services ROW (Reverse Charge) (for UK only): Purchase of services from all countries outside the UK that you account for under the reverse charge procedure.
  • 18 – Import Goods ROW – Postponed VAT (for UK only): Purchase of goods from all countries outside the UK (including EU) with VAT charged, using postponed VAT accounting.

The first VAT rate (16) can be added manually in your current version, however VAT rate 18 cannot be created manually as it uses the term Import Goods ROW Postponed and would require an upgrade to the latest version, Sage 200 2020 R2.

Sage 200 customers can add new VAT codes from Accounting System Manager > System Settings > VAT Rates > Add.

Please Contact Century to book your remote upgrade.

Full Details:-

UK only 16 Purchase Services ROW (Reverse Charge) For the UK:

Purchase of services from all countries outside the UK that you account for under the reverse charge procedure.

Set at the standard rate 20%.

Affects UK VAT Return boxes: 1, 4, 6, 7.

UK only 18 Import Goods ROW – Postponed VAT For Great Britain (England, Scotland, Wales):

Purchase of goods from all countries outside the UK (including EU) with VAT charged, using postponed VAT accounting.

Set at the standard rate 20%.

Affects UK VAT Return boxes: 1, 4, 7.

Use instead of VAT rate code 8.

For Northern Ireland:

Purchase of goods and related services from all countries outside the UK and EU with VAT charged, using postponed VAT accounting.

Note: There are no changes in VAT treatment for the movement of goods between Northern Ireland and the EU, so you would still use VAT code 8 for EU countries.

Set at the standard rate 20%.

Affects UK VAT Return boxes: 1, 4, 7.

This VAT code is only created by default in Sage 200cloud Professional 2020 R2 version onwards.