Bright Angels

With the ‘old’ standard VAT rate of 17.5% coming back into force on 1st January 2010 many companies will need to change the VAT code on Sage. This article explains how to do this manually.

If you don’t have Sage Cover (and therefore don’t get the download) and you are on the standard VAT accounting you can make the change manually by following the below steps. You should make this change on 1 January 2010 or as soon as possible thereafter. For more details regarding the Standard Rate VAT changes, visit the HMRC Web site.

IMPORTANT: Make a back-up of your data before you start this process.

To change the standard rate of VAT in Sage, you should edit the standard rated tax code, T1 by default.

1. Open the Settings menu, select Configuration then click the Tax Codes tab.
2. In the Tax Codes screen, choose T1 (or if you use a different tax code for your standard rate of VAT select the relevant tax code) then click Edit.
3. In the Edit Tax Code window, click on the Rate box, enter 17.5 then click OK.
4. To apply the change, and return to the Sage desktop, click Apply then click Close. If you are prompted to save your changes, click No.

Congratulations! You have now successfully changed the standard rate of VAT.

The Sage software applies the new rate of VAT to any new transactions that use this tax code. All existing transactions remain unchanged at the old rate of VAT.

For more information visit the Sage support website or contact bright angels for support.