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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 the Tax Transactions listed in the above section.
Transferring VAT liability from a group member
For a Tax Transaction that transfers the VAT 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) | |
Current Payables - Group Payables | -(Due_Amount) |
For a Tax Transaction that transfers the VAT 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) | |
Current Receivables - Group Receivables | -(Refund_Amount) |
Accepting VAT liability by the Representative member
For a Tax Transaction that transfers the VAT amount due to FTA that must be accepted by the Representative Member from an ordinary group member, the application generates the following journal entries:
GL Account | Debit | Credit |
|---|---|---|
Current VAT Payable | (Due_Amount) | |
Current Receivables - Group Payables | (Due_Amount) |
For a Tax Transaction that transfers 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) | |
Current Payables - Group Receivables | (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.