Hi Fay

Use T9 for expenses that are outside the scope of VAT (as opposed to be being exempt or zero rated).  Examples are business rates and insurance.

Use T2 for exempt transactions (eg postage, insurance, finance charges).

Use T0 for zero rated transactions.

For items that would have included VAT if the supplier had been registered for VAT I always use T0.

See https://ask.sage.co.uk/scripts/ask.cfg/php.exe/enduser/std_adp.php?p_faqid=11217 and https://www.whitingandpartners.co.uk/sage-50-vat-t-codes/

Actually I have never used T2 - I've always used T9 for the exempt supplier invoices.  On a practical point, if you get a VAT Review, the VATman is really only interested in checking that you have not underpaid your VAT.  I've never encountered an VATman who was fussed about which T code I used.  They do however look at your quarterly statistics so iI think it's important to be consistent as to what T code you use. 

Richard

Hi Fay

Use T9 for expenses that are outside the scope of VAT (as opposed to be being exempt or zero rated).  Examples are business rates and insurance.

Use T2 for exempt transactions (eg postage, insurance, finance charges).

Use T0 for zero rated transactions.

For items that would have included VAT if the supplier had been registered for VAT I always use T0.

See https://ask.sage.co.uk/scripts/ask.cfg/php.exe/enduser/std_adp.php?p_faqid=11217 and https://www.whitingandpartners.co.uk/sage-50-vat-t-codes/

Actually I have never used T2 - I've always used T9 for the exempt supplier invoices.  On a practical point, if you get a VAT Review, the VATman is really only interested in checking that you have not underpaid your VAT.  I've never encountered an VATman who was fussed about which T code I used.  They do however look at your quarterly statistics so iI think it's important to be consistent as to what T code you use. 

Richard