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Consolidating the VAT Liability
Consolidation of tax liabilities on accounts of the Representative Member is occurred as the result of posting of the tax transactions listed in the above section.
Transferring VAT liability from a group member
For a Tax Transaction that transfers the VAT amount (Due_Amount) owed to the FTA by an ordinary group member from this member, the application generates the following journal entries:
GL Account | Debit | Credit |
|---|---|---|
Current VAT Payable | -(Due_Amount) | |
Other Operating Expenses | -(Due_Amount) |
For a Tax Transaction that transfers 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) |
Accepting VAT liability by the Representative member
For a Tax Transaction that transfers the VAT amount that was due to FTA by an ordinary member and that must be accepted by the representative Representative Member from an ordinary group member, the application generates the following journal entries:
GL Account | Debit | Credit |
|---|---|---|
Current VAT |
Payables | (Due_Amount) |
Other Operating Expenses | (Due_Amount) |
For a Tax Transaction that transfers the VAT refund amount to be accepted by the representative member 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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