Page History

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1. Click Create to create a new Input VAT Transaction.
2. In the Company field, select the seller of the asset and then select the related contract.
3. Select Invoice Received as transaction type.
4. Select Decrease as adjustment type.
5. Select the Generate GL Transactions check box.
6. Select the Decrease Recoverable VAT check box.
7. Make sure the correct entity is selected in the Entity field.
8. Select the department associated with the transaction.
9. In the Basis field, select the Tax Invoice Received generated on the purchase of the asset.
   
   
   
   
10. Below the Basis field, notice the link in blue font that presents information about the currency, its exchange rate, price type, and taxation option. Click the link to open the Prices and Currency dialog box. Make sure the Prices Include VAT check box is cleared.
11. Click Save to record the document.
12. On the Inventory and Services tab, click Add to add a new line.
13. In the Item column column, select the capital asset.
14. In the VAT, % column, select the 5% option.
15. In the Amount column, specify the taxable amount of the purchase for which VAT cannot be recovered. For example, if you need to decrease the recoverable VAT for 40000 AED, the taxable amount should be specified as 40000*100/5 = 800000.
16. Check that the correct adjustment amount appears in the VAT Amount column.
    
    
17. Click Post and close to save, post, and close the document.

Click the Image Removed button Image Added button to review the GL transactions generated for the document. As the result, the recoverable VAT is decreased by the adjustment amount and expenses are increased by the same amount while the input VAT is not changed.
The VAT adjustment amount will affect the total taxable and VAT amounts in the Standard-Rated Expenses row of the VAT Return.

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1. Click Create to create a new Input VAT Transaction.
2. In the Company field, select the seller of the asset and then select the related contract.
3. Select Capital Asset Scheme Adjustment as transaction type.
4. Select Decrease or Increase as adjustment type according to the sign of the adjustment.
5. Select the Generate GL Transactions check box.
6. According to the selected adjustment type, select either the Decrease Recoverable VAT or Increase Recoverable VAT check box.
7. Make sure the correct entity is selected in the Entity field.
8. Select the department associated with the transaction.
9. In the Basis field, select the Tax Invoice Received generated on the purchase of the asset.
10. Below the Basis field, notice the link in blue font that presents information about the currency, its exchange rate, price type, and taxation option. Click the link to open the Prices and Currency dialog box. Make sure the Prices Include VAT check box is cleared.
    
    
    
11. Click Save to record the document.
12. On the Inventory and Services tab, click Add to add a new line.
13. In the Item column column, select the capital asset.
14. In the Contents column, type a brief description of the transaction, for instance: "Recovered VAT adjustment for Year N".
15. In the VAT, % column, select the 5% option.
16. Calculate a taxable amount for the adjustment amount. Make sure the correct VAT adjustment amount appears in the VAT Amount column.
    
    
17. Click Post and close to save, post, and close the document.

Click the Image Removed button Image Added button to review the GL transactions generated for the document. As the result, the recoverable VAT is changed by the adjustment amount. The adjustment amount will appear in the Adjustments section of the VAT Return.