A mixed VAT bill has lines at different VAT treatments, such as standard rate 20%, reduced rate 5%, zero-rated, exempt or outside the scope of VAT. Each line needs its own VAT code. Some construction services use the domestic reverse charge instead.
Before you start
- Sage 200 Purchase Ledger
- VAT rates set up in Accounting System Manager (reduced rate and outside-scope rates are not created for you)
The Sage 200 way
Where to find it: Purchase Ledger > Enter Transactions > Invoice (Professional) or Suppliers > Enter Transactions > Purchase Invoice (Standard)
- Set up the VAT rates you need in Accounting System Manager > Settings > VAT Rates. Sage 200 creates 0 Exempt, 1 Standard Rate (20%) and 2 Zero Rated. You add a reduced rate (5%) and a non-vatable rate for items outside the scope of VAT yourself.
- Open the purchase invoice screen, choose the supplier and enter the invoice date and reference. The VAT analysis shows the default VAT rate from the supplier account.
- Enter the total Goods Value and VAT Value for the invoice in the Transaction details section.
- In the VAT Analysis section add one line per VAT rate. Enter the Code, the Goods value that rate applies to, the VAT value and the Details. Click to add a new line for each extra rate.
- Check that the VAT Analysis totals match the Goods Value and VAT Value in Transaction details before you save.
- For construction work under the domestic reverse charge use a rate with the term CIS Reverse charge purchases (5% or 20%). Set it as the Default VAT code on the supplier Trading tab.
Limits in Sage 200
- A reverse charge rate for construction (CIS Reverse charge purchases) cannot sit on the same document as any other VAT rate above 0%. Sage 200 shows a warning and you need a separate invoice.
- The reduced rate, non-vatable and construction reverse charge rates are not set up by default. You create them.
- The multi-rate steps were read in the Sage 200 Standard help. The Professional help shows the same VAT analysis defaults on the invoice screen.
Good to know in Sage 200
- A rate marked as not included in the VAT Return sends its values to the Non-Trading Vatable Transactions report instead. Use this for items outside the scope of VAT.
- Each VAT rate has a Terms setting. The Terms setting, not the code number, decides how the VAT Return treats it.
- Rate 16 Purchase Services ROW (Reverse Charge) covers services bought from overseas. It is not the construction rate.
The Pulsify way
- Forward the supplier's invoice to your Pulsify address or upload it. Pulsify reads every line and finds the supplier in Sage 200.
- Pulsify sets a tax code on each line from the VAT rate printed on that line, matched to a tax code in Sage 200.
- Check any line where the invoice is unclear, such as zero-rated against exempt. Change the VAT rate and approve.
- The purchase invoice is created in Sage 200 with the VAT code on each line.
Pulsify connects to Sage 200. We set up the connection for you.
What Pulsify does not do here
- Pulsify does not decide if the domestic reverse charge applies. Pick the reverse charge code yourself in the review screen.
- A VAT rate on the invoice that has no matching tax code in Sage 200 is flagged. Add or choose the code before you approve.
Example in Sage 200
Example Site Supplies Ltd sends one purchase invoice in GBP with three VAT treatments. Amounts are net of VAT.
| Line | Amount | Tagged to |
|---|---|---|
| Fixings and fasteners | £400.00 | VAT analysis: Standard Rate 20%, VAT £80.00 |
| Gas for the site welfare cabin | £100.00 | VAT analysis: Reduced rate 5%, VAT £5.00 |
| Printed site safety guide | £60.00 | VAT analysis: Zero Rated, VAT £0.00 |
Goods Value £560.00. VAT Value £85.00. Invoice total £645.00. The three VAT Analysis lines add up to the same £560.00 and £85.00.
Common mistakes
- Leaving the supplier default VAT rate on every line when part of the invoice is zero-rated or reduced rate.
- Adding a construction reverse charge rate to an invoice that also carries standard rate lines. Sage 200 blocks the combination.
More help
- How to code an AP bill with mixed GST lines in Acumatica
- How to code a purchase invoice with mixed GST lines in Business Central
- How to code a vendor invoice with mixed GST lines in Sage 300
- How to enter a purchase invoice with line items in Sage 200
- How to check VAT coding on purchase invoice records in Sage 200 before you send your VAT Return
- How to code one purchase invoice to several nominal codes in Sage 200
- All Sage 200 how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
- desktophelp.sage.co.uk/sage200/sage200standard/Content/Screens/PL/Record%20supplier%20invoices.htm
- desktophelp.sage.co.uk/sage200/professional/Content/ASM/MaintainTaxRates.htm
- desktophelp.sage.co.uk/sage200/professional/Content/PL/PurchaseInvoice.htm
- desktophelp.sage.co.uk/sage200/professional/Content/General/CIS%20reverse%20charge%20FAQs.htm
Common questions
How do I put different VAT rates on one purchase invoice in Sage 200?
Enter the total Goods Value and VAT Value in Transaction details. Then add one line per rate in the VAT Analysis section with its code, goods value and VAT value. The totals of those lines must match the invoice totals.
Where do I get the 5% and outside-scope rates?
Sage 200 creates exempt, standard and zero rates for you. Go to Accounting System Manager > Settings > VAT Rates and add a 5% reduced rate. Add a 0% non-vatable rate with the VAT Return box cleared for items outside the scope of VAT.
How do I post a construction bill under the domestic reverse charge?
Create a VAT rate with the term CIS Reverse charge purchases at 5% or 20%. Use it on the invoice. Do not mix it with any other VAT rate above 0% on the same invoice. Setting it as the supplier's Default VAT code saves time.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier bills in Sage 200.