VAT Changes For Sage

The good news for Sage users is that the changes needed to adopt the new VAT rate of 17.5% from 1st January 2010 are relatively straightforward to implement. Follow these steps outlined below to effect the changes.

Step 1: Select "Settings" and "Configuration" from the Sage main menu at the top of the screen.

Step 2: Select the "Tax Codes" tab.

Step 3: Highlight the T1 code and select the "Edit" button. Amend the rate to 17.5% and click the "OK" button.

Step 4: If you had set-up a tax code for the change in December 2008, then repeat the above exercise to amend it back to 15%. If not, find an unused code e.g. T3, T5, T6, etc, highlight it and select "Edit". Set the VAT rate to 15.00 and enter a relevant narrative to indicate use for 15% VAT pre Jan '10. Tick the box to "Include in VAT Return" and click "OK".

Step 5: Once the necessary changes have been made, click the "Apply" button and save a copy of the file as necessary with an appropriate title e.g. VAT Jan 2010. You can then "Close" the window.