---
title: How To Create A Rate Of VAT In Sage 200 | Blog
description: VAT rates in the hospitality sector, will increase to 20% from 1st April 2022. Here's our guide to show you how to alter VAT rates within Sage 200.
image: https://kcpos.co.uk/hubfs/Imported_Blog_Media/sAGE-200-vat.jpg
---

23 March 2021 | | [ Rachel Marsh ](https://kcpos.co.uk/news/author/rachel-marsh)

# How To Add New VAT Rates In Sage 200

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## From 1 April 2022,  VAT rates for hospitality & attractions will rise back up to rates of 20%.

In order to support this change in your account system, you may need to add a new VAT Rate. Please see below steps on how to do this, in Sage 200:

### You may find that you need additional VAT rates to the defaults supplied within Sage 200. Depending on what you buy and sell you may need to create a reduced rate of VAT for items you buy and sell.

These are maintained within Accounting System Manager > Settings > VAT Rates.

To create a new VAT rate:

1) Click Add to add a new row on the table.

2) Enter a unique code and name.

*This name appears throughout Sage 200, so make sure that the name adequately describes your new VAT rate.*

3) Select the VAT Return box as you want to include the value of VAT accumulated under this code in the VAT Return.

4) EC Terms set to Not Applicable

5) % – 12.5

6) Input / Output code – This is defaults to the nominal accounts specified for VAT in the Default Nominal Accounts.

You have now successfully created a new VAT rate to use.

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