This article will provide guidance on AutoEntry's functionality which supports EU Destination VAT schemes for sales invoices in Sage Accounting.
Sage Accounting/SBCA UK&I users who have Business-to-Consumer (B2C) sales in the EU and wish to use destination VAT from 1st July 2021
From 1st July 2021, the EU will introduce new optional VAT schemes for sales to EU consumers (customers in the EU who are not VAT registered).
Destination VAT settings and reports will be available in Sage Accounting from 1st July. Please consult the guidance issued by Sage Accounting on correct application of this here.
AutoEntry support for Sage Accounting’s destination VAT is set to be released later in July - the interval is to ensure that all tax rates across the EU are fully up-to-date and publishing correctly in line with Sage Accounting’s advanced tax rules engine.
You are not impacted by this if:
you have EU B2C sales but wish to continue zero-rating their supply (in this case you would simply have the setting disabled in Sage Accounting), or
as a company in the UK excluding Northern Ireland, you do not have EU B2C sales that are greater than the low-value consignment rules allow, or
as a company in Northern Ireland, Ireland or the rest of the EU, you do not have EU B2C sales.
If you wish to use destination VAT for your B2C sales in the EU (using the low-value consignment rules in the UK excluding Northern Ireland) in the interim period in July before AutoEntry support is released, then you will need to create these sales invoices manually in Sage Accounting. Existing sales invoices to the EU where you would normally zero rate the supply will still be supported.
Once AutoEntry support is released, you can resume using AutoEntry for sales requiring destination VAT. This solution will work as follows:
Where the option to apply destination VAT to EU B2C sales has been enabled in your integrated Sage Accounting company, AutoEntry will sync all of the destination tax codes associated with the set of that company’s customers which are:
a) located in the EU and
b) not VAT registered (i.e. “consumers”).
These destination tax codes will then be available for you to assign to your sales invoices.
Further details on this process will be added at the time of its release.
Note that this solution to support Sage Accounting’s destination VAT functionality will be possible for the sale of goods only; the sale of OSS (One Stop Shop) services will not be supported until later in the year (after Sage Accounting’s Products and Services become available in AutoEntry). If you wish to use destination VAT for sales of OSS Services in the interim period, then you will need to create those invoices manually in Sage Accounting.
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This article provides general rather than specific guidance to assist all of our customers. We always do our best to make sure that the information is correct, but as it is general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements. For VAT, customs and excise and duties enquiries relating to the UK, you should call the HM Revenue and Customs (HMRC) National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk; for the same enquiries in Ireland contact Revenue. In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.