5/28/2020 Forgot To Add Vat To An Invoice
Client didn't put VAT on sales invoices to one of his customers and needs to correct this. Not sure exact procedure. If it was say invoice #53 for say £2500 and so £500 should have been added for VAT but wasn't. Should the client re-issue the invoice as #53A for £2500 +VAT total £3,000 and then put 'Less £2,500 already paid'.
The GCC Council has implemented 5% VAT in two countries –United Arab Emirates and Kingdom of Saudi Arabia from Jan. 1, 2018 onwards.
Implication of GCC VAT on invoices
In the VAT regime, all sales and purchase transactions need to be tax compliant. This means that invoices, debit notes, credit notes and other documents have to be printed as per the formats prescribed by the Federal Trade Authority (for UAE) and General Authority of Zakat & Tax (for Saudi Arabia), depending on where your business is located.
VAT compliant invoicing
VAT compliance begins with VAT invoicing. Every single invoice that you generate or transaction you record must be done in a VAT compliant way. With Tally.ERP 9, you don’t have to worry whether you have raised an invoice correctly or not.
All you have to do in Tally.ERP 9 is to enter TRN (UAE) or TIN (KSA) and the period. As soon as you start recording transactions in Tally.ERP 9, the VAT ready software maps all the data with VAT rules. Let us look at some examples to understand this better.
Invoices with multi-items and multi-tax types
With the simple one-time set-up for invoicing in Tally.ERP 9, you will be able to print accurate VAT compliant tax invoices right from day one. The simplicity with which a range of invoices can be created in Tally.ERP 9 gives an easy start for businesses who are planning to computerize their business practices.
Whether you are a white good trader or an exporter, Tally.ERP 9 helps to create invoices for all types of businesses. If you are a trader, you will need to enter only the name of customer, stock item, quantity and rates. If you are an exporter or an importer, then you will capture multi-items and multi-tax types such as foreign currency, applicable VAT, lengthy terms and conditions, bill of lading details and so on.
Multi-currency VAT invoicing
The multi-currency feature in Tally.ERP 9 allows business owners to record transactions involving multiple currencies. VAT gets calculated on the base currency and then you can print these tax invoices with the value break up of both the currencies.
VAT compliant invoicing as per prescribed norms
With Tally.ERP 9 your invoices will be VAT compliant as per the Federal Tax Authority (FTA) norms of UAE and General Authority of Zakat and Tax (GAZT) of Saudi Arabia. VAT compliant invoices can be generated in no time. While there are several VAT software available in the market, the software that you use must have the capability to seamlessly generate all kinds of VAT invoices easily and simplify your business practices.
. Who must issue a VAT invoice?.Who must issue a VAT invoice?An who supplies taxable goods or services must issue a Value-Added Tax (VAT) invoice where the supply is made to any of the following:. another accountable person. a Department of State. a local authority.
a body established by statute. a person who carries on an exempt activity. a person other than a private individual in another EU Member State.
a person in another Member State where a reverse charge to VAT applies. This is where it is the customer who must account for VAT, in the other Member State, in respect of the supply.Who does not have to issue a VAT invoice?apply to the supply of construction services by:. a sub-contractor registered for VAT in the State. or. a sub-contractor not registered for VAT in the State who supplies the services to a principal contractor.
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