In this Tip of the Week, we show you step-by-step how to set up new VAT rates within Sage 200.
Additionally, you can watch the video here to better your understanding.
How to set up new VAT Rates
To set up a new VAT rate, go to ‘Accounting System Manager’, click into ‘Settings’, and into ‘VAT Rates’.
This will open a pop out box containing all your currently available VAT rates and details.
To set up the new VAT Rate, simply click on the blank space below your bottom VAT Rate. This is shown by the highlighted section on this image.
Firstly, type the code number you wish the VAT Rate to have, for example ‘3’. This should be typed into the column titled ‘Codes’.
Secondly, name your new VAT Rate under the column titled ‘Name’ (for example Reduced VAT).
Next, select whether the VAT Rate should be on the VAT Return by checking the tick box under the column titled ‘VAT Returns’.
After this, add in the terms you wish the VAT Rate to have, under the column titled ‘Terms’. You have the choice to either keep this as ‘Not Applicable’ or click into this and select which terms you wish to have from the drop-down menu.
Next, under the column titled ‘%’ add in the percent (for example 5%).
The final two columns titled ‘Input Code’ and ‘Output Code’ will default from your default nominal accounts. If necessary, you can select either of these figures and change them. To do this, type in the new figure, or use the drop down to select another figure instead.
Once you have completed these steps, click ‘OK’ at the bottom of the box on the screen to save these details.
Once you go back into ‘VAT Rates’, you will now be able to see all the details of the new VAT Rate you have just set up.
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