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For the VAT amount (Due_Amount) owed to the FTA by an ordinary group member, the application generates the following journal entries:
GL Account | Debit | Credit |
|---|---|---|
Current VAT Payable | -(Due_Amount) | |
Other Operating Expenses | -(Due_Amount) |
For the VAT refund amount (Refund_Amount) to be received from the FTA by an ordinary group member, the application generates the following journal entries:
GL Account | Debit | Credit |
|---|---|---|
Current VAT Receivable | -(Refund_Amount) | |
Other Operating Income | -(Refund_Amount) |
For the VAT amount that was due to FTA by an ordinary member and must be accepted by the representative member, the application generates the following journal entries:
GL Account | Debit | Credit |
|---|---|---|
Current VAT |
Payables | (Due_Amount) | |
Other Operating Expenses | (Due_Amount) |
For the VAT refund amount to be accepted by the representative member from an ordinary group member, the application generates the following journal entries:
GL Account | Debit | Credit |
|---|---|---|
Current VAT Receivables | (Refund_Amount) | |
Other Operating Income | (Refund_Amount) |
Then, on behalf of the entity that acts as Representative Member, you can generate a VAT Return for the current tax period by using the Taxes > Tax Documents > VAT Returns form and send it to the FTA. Also the Representative Member creates a payment to the FTA or requests a return depending on the sign of the total tax amount.
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