In case when the buyer of commercial property paid the VAT on this purchase directly to the FTA, the entity must reverse the output V AT VAT specified in the invoice. Note, that these VAT amounts should be reported separately for each Emirate emirate where the property being sold is located.

In FirstBIT FirstBit ERP, you need to account for the sales of a commercial property as follows:

1. Create an Invoice and generate a Tax Invoice for the sales to account for the output tax. For details, refer to Creating a Tax Invoice.
2. Create a Mutual Settlements document to decrease the customer debt (Accounts Payable) by the output VAT amount.
3. Create an Output VAT Transaction to reverse this amount of output tax. For this, select the Sales of Commercial Property Adjustment transaction type and Decrease as adjustment type.

How to process

Where: Accounting > Service Tools> Mutual Settlements

...