UK VAT not being charged but should be according to Sage

[Rhothgar]

Good morning,

Are there any UK based Sage 50 Accounts (V27 or below) users on here that can answer this question?

Adobe's invoice for Photography Plan does not included UK VAT but according to the Sage Article on which tax codes to use (opens in new window), it states that "Imports with a consignment value of £135 and below should have had the UK VAT charged at the point of sale and will not be subject to import VAT".

The transaction is denoted as "Goods" on the invoice.  Adobe are located in Dublin so it is classed as "Abroad Outside of UK".  It is not subject to Northern Ireland Protocol.  I've ticked No and assume this is correct and it doesn't exceed the import threshold of £135.

It recommends using a tax code in Sage of T21 which affects Boxes 1, 4 and 7.  

Boxes 1 and 4, the VAT amount is entered (BUT THERE ISN'T ONE!!!) and the Net amount appears in Box 7.

Any advice on this would be immensely appreciated.  My OCD gets the better of me when dealing with the minutiae of accounting.

[kglad]

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[Nancy OShea]

I really think you should talk to your tax consultant. 

[Rhothgar]

I'm not sure they really understand such minutae of detail and would probably charge £100 to just answer a question where no VAT is due...

[jasper_0686]

Thanks, that helps. I think you’re right , probably best to check with Adobe first, and if needed, a tax consultant. I have similar issue. I solved it by confirming with Adobe that VAT wasn’t charged due to their EU setup, then adjusted the Sage entry using T21 with a zero VAT amount. That way, the return still reflected the transaction correctly.