In a new document of the Calculation of VAT Liability type, you need to fill in the required On Date field in the upper area of form.
The "Calculation of VAT Liability (Create)" form
In the On Date field, specify a date that indicates the end of period for which the tax information will be collected and processed.
<Auto> in the Number field indicates that a number to this document is assigned automatically when you save the document. By default, the From field shows the current business date, which you can change if needed.
In the Entity field, select an entity of your company for which this document is being prepared. The Entity field is available if the Multi-Company Accounting option is selected on: Administration > Settings> General Settings. You can select your personal default entity to appear in documents; for this, refer to Personal Settings. If you have not selected your default entity, the entity defined first will be used as the system default value.
To initially fill in the data or to update the displayed amounts, click the Fill button to the right of the On Date field.
Note. If the accounting currency is not the same as the national currency, the calculated amounts are shown in the national and accounting currencies.
Under the VAT Payable heading, a box (with code of the national currency to the right) shows the VAT amount that is calculated as the balance of the Current VAT Payable account in the national currency on the specified date.
A box with code of the accounting currency to the right (if available) shows the balance of the Current VAT Payable account in the accounting currency.
The VAT Payable amount can include the following:
- Opening balance of the account
- Amount of the output VAT on the transaction in the specified tax period
- Interest on overdue tax
- Any penalties that were imposed by the Tax Authority
Under the VAT Receivable heading, a box (with code of the national currency to the right) shows the amount of recoverable VAT in the national currency including any tax refunds that the entity can reclaim from the Tax Authority. This amount is calculated as the balance of the Current VAT Receivable account in the national currency on the specified date.
A box with code of the accounting currency to the right( if available) shows the balance of the Current VAT Receivable account in the accounting currency.
The amount calculated as the difference between the VAT Payable and VAT Receivable amounts is shown under the Total VAT Payable or Total VAT Receivable heading. This heading may change depending on the sign of this difference. If the difference is a positive value (greater than zero), then the heading is Total VAT Payable—see the screenshot above. If the difference is a negative value, then it is Total VAT Receivable. If you have different national and accounting currencies, two resulting amounts are shown in the appropriates boxes under the heading.
The VAT Payable amount calculated in the national currency is the tax amount to be paid to the Tax Authority.
The VAT Receivable amount calculated in the national currency is the refundable amount that the Tax Authority may return to the entity which is the taxpayer. This refundable tax amount can be received upon request or it can be carried forward to a subsequent tax period or multiple subsequent periods to be offset against payable tax or any penalties imposed.
The toolbar buttons
After filling out the form, click the Save button to save your work or Post and close to post and close the document.
Click Generate to select the type of document which you want to generate:
- Payment Expense: if you need to pay to FTA the tax amount that is specified in the Total VAT Payable field.
- Payment Receipt: if you need to record the payment received from FTA as a refund with the amount specified in the Total VAT Receivable field.
For descriptions of other buttons, see Document Toolbar.