On sales documents, an incorrect VAT rate was used, and now, when it has been found out, there is no possibility to change the invoice−for example, the VAT Return report for the period to which this invoice belongs was already had been submitted. We The entity must reflect show the corresponding adjustments on VAT Return for the current tax period.

There might be the following two subcases:

A. The original rate was 0% or exempt and must be changed to 5%. To increase the output VAT accordingly, we create For example, in the original invoice a standard rate (of 5% in UAE) was used, while the services are considered tax-exempt. In case, the zero rate was used incorrectly in the original document, refer to Case 4. Unconfirmed right to use 0% rate.

The processing of the case includes the following stages:

I. Create an Output VAT Transaction with Increase as the Decrease adjustment type . Then, we must create a tax invoice for the increased VAT amount based on this transaction.B. The original rate was 5% and must be changed to 0% or exempt. To decrease the output VAT accordingly, we create to roll back the taxable and tax amounts of the incorrect original Invoice. Also, generate a Tax Credit Note.

II.  Create an Output VAT Transaction with Decrease as the Increase adjustment type . Then, we must create a credit note based on this transaction.to restore the correct taxable and tax amounts in the database.

How to

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process

I. Where: Accounting Taxes > Value Added Tax Documents > Output VAT  VAT Transactions

1. Click Create to create a new Output VAT Transaction.
2. In On the Main tab, in the Company box, select the customer.
3. In the Transaction Type field, select Invoice.
4. In the Adjustment Type field, select IncreaseDecrease.
5. Make sure the link below the fields contains Prices Do Not Include VAT. Otherwise, click the link to open the Prices and Currency dialog box, clear the Prices Include VAT check box there, and click OK to close the dialog box.
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6. Click Save to assign the number to this document.
7. On the Inventory/Select the Generate GL Transactions check box.
8. Select the original document, Invoice, as a basis.
   
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9. On the Inventory and Services tab, click Add to append a new line.
10. In the Contents column enter any comment to the transaction, for instance VAT Rate correctionAdd the items for which correction is needed.
11. In the Amount column, enter the amount from the original invoice.
12. In the Income / Expense Account column, select the income account from the original invoice.
13. In the VAT, % column, select the correct rate, 0%.
    Image Removedstandard rate that was used in the original invoice. Make sure that the same (as in the Invoice) option, Prices Do Not Include VAT or Prices Include VAT, is selected.
14. Make sure that the VAT amount is exactly the amount from the basis.
    
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15. Click Post to register the document in the system.
16. On the Main tab at the bottom, click notice the Generate Tax InvoiceCredit Note button. A link Click it to generate the generated tax invoice appears.

How to process subcase B

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1. tax document or on the toolbar click Generate > Tax Credit Note.

II. Where: Taxes > Tax Documents > Output VAT Transactions

1. Click Create to create a new Output VAT Transaction.
2. In the Company box, select the customer.
3. In the Transaction Type field, select Invoice.
4. In the Adjustment Type field, select DecreaseIncrease.
5. Select the Generate GL Transactions check box.
6. Make sure that the link below the fields contains Prices Do Not Include VAT. Otherwise, click the link to open the Prices and Currency dialog box, select the Prices Include VAT check box there, and close the dialog box.Click Save to assign the number to this document. option is selected.
7. Select the original document, Invoice, as a basis.
   
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8. On the Inventory /and Services tab, click Add to append a new line.
9. In the Contents column enter any comment to the transaction, for instance VAT Rate correction.
10. In the Amount column, enter the amount from the original invoice.
11. In the Income / Expense Account column, select the income account from the original invoice.
12. In the VAT, % column, select the rate that was used in the original invoice.
13. Add the items for which correction is needed.
14. Make sure that the taxable amount is correct and the applied VAT rate is now 0% (or exempt).
    
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15. Click Post to register the document in the system.

Where: Sales > Sales Documents > Credit Notes

To create a Tax Credit Note, do the following:

1. Click Create to open a new document.
   1. В любых вариантах требуется документ-основание. Не знаю как выбрать Output VAT transaction  в качестве основания

1. In the Company box, select the customer.
2. In the Transaction Type field, select Mutual Settlements Adjustment.