I've placed the code on sheet2. It works perfectly. Then when I save and close then re-open the workbook, it doesn't work. If I then get the code up on the screen and F8, the code triggers and it works every time until I save, close and re-open again.

Private Sub Worksheet_Activate()
Dim lColor1 As Long
Dim lColor2 As Long
Dim irobot1 As Integer
Dim irobot2 As Integer
'Define irobot1
irobot1 = Sheets("VAT specific").Range("E13").Value
    If irobot1 = 0 Then
'3 = red, 4 = green
        lColor1 = 3
    Else
        lColor1 = 4
    End If
'Make tab color green or red
Sheets("VAT specific").Tab.ColorIndex = lColor1
irobot2 = Sheets("EMP specific").Range("E13").Value
    If irobot2 = 0 Then
        lColor2 = 3
    Else
        lColor2 = 4
    End If
Sheets("EMP specific").Tab.ColorIndex = lColor2
End Sub