Product: Sage Accounts Production (SAP)

Revision Date: 26thNovember 2008

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From 1 December 2008, the standard rate of VAT will increase from 21% to 21.5%.

This rate applies to the supply of goods and services including:

motor vehicles, petrol, furniture, carpets, adult footwear, clothing, accountancy and solicitor services.

Unaffected by the VAT rate change are the following:

zero-rated goods, such as basic foodstuffs, children’s clothing and children’s footwear and oral medicines, goods and services subject to VAT at the 13.5%.

To determine which VAT rate should be applied, refer to the guidance document published on the Irish Revenue Commissioners website.

Note: Sage is unable to advise which VAT rate is applicable in specific circumstances. Any such queries must be directed to the Irish Revenue Commissioners.

Updating the vat rate on your masters

It would be advisable to update the vat rates on your masters as this will save you having to individually update to the current vat rates on subsequently created datasets.

Updating the vat rates on existing companies.

  • Open your dataset
  • Go to Tools->Settings -> Dataset Settings
  • Open the Vat Tab.
  • Choose a new vat code to use as the standard rate of vat and change the description on your old standard vat code from Standard to Old Standard Rate
  • See screen shot below :

This will allow for any transactions to be posted to which the old rate applies.

Updating the vat rate in other areas

  • Certain transactions may need to be edited to incorporate the new vat rate like unposted invoices or recurring entries.
  • Also you will need to edit the customer/supplier default vat rate. To do this for a customer:
  • Highlight a customer and click edit.
  • Go to the defaults tab.
  • Change the vat rate if needed.
  • Click ok on the edit customer screen.

Note:

We would strongly advise against updating the vat rate from 21% to 21.5% on your existing vat code as this may lead to report inconsistencies in your dataset.

After Performing Year End Procedure

After performing the year end you can remove the new vat rate that was added (e.g. code Das in the screenshot above) and update the default code(e.g. as in the screenshot above code A) to the new rate.

Please see screen shot below.

Also you may need to check the vat entered for any recurring entries/ unposted invoices you might have.

SAS Technical Support
Tel: 1890 882060
Fax: 01 6420895
Email: / Sage Ireland Limited
3096 Lake Drive,
CitywestBusinessPark,
Citywest,
Dublin 24.
Tel: 1890 88 20 60
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