Microsoft Ireland Supplier (23.000%) VAT

[Mariya.Ivanova]

Hi, I have a bill from Microsoft Ireland which charge my company 23% VAT. We use their service for our company, not for our customers. Can you please advise me under which Tax Code (T?) I have to set up this supplier. I use Sage 50 at the moment. Thank you

[brucedenney]

I assume that you are in the UK.

The normal tax code for standard rated EC Purchases for Services is T24, however, this assumes you have a standard configuration and the Tax Codes are set up this way, you can check your configuration in Settings>Configuration>Tax Codes

Default tax codes - UK

T0 Zero rated transactions
T1 Standard rate
T2 Exempt transactions
T4 Sales of goods to VAT registered customers in EC
T5 Lower rate
T7 Zero-rated purchases of goods from suppliers in EC
T8 Standard-rated purchases of goods from suppliers in EC
T9 Transactions not involving VAT
T20 Sales and purchases of reverse charges
T22 Sales of services to VAT registered customers in EC
T23 Zero-rated purchases of services from suppliers in EC
T24 Standard-rated purchases of services from suppliers in EC
T25 Flat rate accounting scheme, purchase and sale of individual capital items > £2,000

[Mariya.Ivanova]

Thank you very much. It makes more sense now for me.