TEENA COMPUTERS

Activate UAE VAT in the company master

1. In the Company Creation or Company Alteration screen, set the
option Enable VAT? to Yes . The emirate specified in the primary mailing
address will be taken as your business location.

2. Specify the TRN for the business. This can be printed in the invoices as required.
You can also specify this later.
3. Specify the Registration date . UAE VAT will be applicable for your transactions
from this date onwards.
4. Select the Periodicity as Monthly or Quarterly . UAE VAT returns will be
generated based on the periodicity selected.
5. Press Ctrl + A to accept the company details.
Activate UAE VAT from statutory features
1. Open the company for which you need to activate VAT.
2. Press F11 > F3 .

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3. Set Enable VAT? to Yes .

4. Select your business location.
5. Specify the T R N for the business. This can be printed in the invoices as
required. You can specify this later.
6. Specify the Registration date . UAE VAT will be applicable for your transactions
from this date onwards.
7. Select the Periodicity as Monthly or Quarterly . UAE VAT returns will be
generated based on the periodicity selected. If you select Quarterly , enter the
date from which you have to file the returns for the first quarter.
8. Enable the option Set/alter VAT details? to specify tax rate details.
9. If your company is located in a designated zone, set the option Company in
Designated Zone? to Yes .
10. In the Ignore mismatch in tax up to field, specify the value up to which the
mismatch in tax amount can be ignored.

Note: Currently a single VAT rate of 5% is applicable for all taxable supplies. You can
set the same in the VAT Details screen enabling Set/alter VAT
details? Setting the VAT rate in the Company Operations Alteration will
apply to all masters.

You can configure the data to view the mailing details in local language. To do this:
1. Click F12: Configure .
2. Set the option Show mailing details in local language? to Yes .
3. Press Enter to accept.
4. In the Statutory and Taxation screen, set the option Mailing details in local
language? to Yes to record company address in Arabic .

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5. Press Enter to accept the changes.

You can create new ledgers or update the existing ledgers and start doing UAE VAT
compliant transactions.

KSA VAT
Activate KSA VAT in the company master

Activate KSA VAT from statutory features

Activate KSA VAT in the company master

1. In the Company Creation or Company Alteration screen, set the
option Enable VAT? to Yes .

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2. Specify the TIN for the business. This can be printed in the invoices as required.
You can also specify this later.
3. Specify the Registration date . KSA VAT will be applicable for your transactions
from this date onwards.
4. Select the Periodicity as Monthly or Quarterly . KSA VAT returns will be
generated based on the periodicity selected.
5. Press Ctrl+A to accept the company details.
Activate KSA VAT from statutory features
1. Open the company for which you need to activate VAT.
2. Press F11 > F3 .

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3. Set Enable VAT? to Yes .

4. Specify the TIN for the business. This can be printed in the invoices as required.
You can specify this later.
5. Specify the Registration date . KSA VAT will be applicable for your transactions
from this date onwards.
6. Select the Periodicity as Monthly or Quarterly . KSA VAT returns will be
generated based on the periodicity selected.
7. Enable the option Set/alter VAT details? to specify tax rate details.
8. In the Ignore mismatch in tax up to field, specify the value up to which the
mismatch in tax amount can be ignored.
9. Set the option Is business into services for which tax is exempted for
citizens? to Yes , if you are a private sector institution providing healthcare,
education and real estate services to Saudi citizens.

Note: You can set the standard VAT rate of 5% by enabling the option Set/alter VAT
details? . This rate will apply to all the masters.

You can configure the data to view the mailing details in local language. To do this:
1. Click F12: Configure .
2. Set the option Show mailing details in local language? to Yes .
3. Press Enter to accept.
4. In the Statutory and Taxation screen, set the option Mailing details in local
language? to Yes to record company address in Arabic .

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5. Press Enter to accept the changes.

You can create new ledgers or update the existing ledgers and start recording KSA
VAT compliant transactions.

Kingdom of Bahrain VAT

Activate Bahrain VAT in the company master

Activate Bahrain VAT from statutory features

Activate Bahrain VAT in the company master

1. In the Company Creation or Company Alteration screen, set the
option Enable VAT? to Yes .

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2. Specify the TRN for the business. This can be printed in the invoices as required.
You can also specify this later.
3. Specify the Registration date . Bahrain VAT will be applicable for your
transactions from this date onwards.
4. Select the Periodicity as Monthly or Quarterly . You can enter the date from
which quarterly return should be applicable in Statutory and
Taxation features.

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5. Press Enter to accept the company details. You need to enter the date from
which the first quarterly tax period starts from F11 > F3 screen.
Activate Bahrain VAT from statutory features
1. Open the company for which you need to activate VAT.
2. Press F11 > F3 .

3. Set Enable VAT? to Yes .

4. Specify the TRN for the business. This can be printed in the invoices as required.
You can specify this later.
5. Specify the Registration date . Bahrain VAT will be applicable for your
transactions from this date onwards.
6. Select the Periodicity as Monthly or Quarterly . Bahrain VAT returns will be
generated based on the periodicity selected.
7. If you select Quarterly return, the Registration date gets prefilled in First
quarterly tax period starts from field. You have to change it to 1-Jul-2019 .
8. Enable the option Set/alter VAT details? to specify tax rate details.

Note: You can set the standard VAT rate of 5% by enabling the option Set/alter VAT
details? . This rate will apply to all the masters.
9. In the Ignore mismatch in tax up to field, specify the value up to which the
mismatch in tax amount can be ignored.

You can configure the data to view the mailing details in local language. To do this:
1. Click F12: Configure .
2. Set the option Show mailing details in local language? to Yes .
3. Press Enter to accept.
4. In the Statutory and Taxation screen, set the option Mailing details in local
language? to Yes to record company address in Arabic .

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5. Press Enter to accept the changes.

You can create new ledgers or update the existing ledgers and start recording Bahrain
VAT compliant transactions.

Domestic Purchase
The purchase of goods or services from a supplier in the same country will attract VAT
rates as applicable for the goods or services. For example, a business located in Abu
Dhabi can purchase goods or services from a supplier in Dubai, or any other emirates
of UAE, such purchases from suppliers located in UAE is considered domestic
purchase.

Record purchases from a domestic supplier

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .

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2. Specify the sales invoice no. and date received from the supplying party in
the Supplier invoice no. and Date fields respectively.
3. In Party A/c name , select the supplier's ledger.
4. Select the purchase ledger applicable for local taxable purchases.
5. Select the required items, and specify the quantities and rates.
6. Select the VAT ledger.
You can view the tax details by clicking A : Tax Analysis . Click F1 :
Detailed to view the tax break-up.

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7. Press Ctrl+A to accept.

Purchase from an Unregistered Dealer

Purchases from unregistered dealers are exempt. You need to identify the party as an
unregistered dealer.

Update the party ledger to identify unregistered dealers

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Alter > select the
ledger.

2. Set the Registration type as Unregistered .

3. Press Ctrl+A to save.

Record purchases from an unregistered dealer

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .

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2. In Party's A/c Name , select the ledger of the unregistered dealer.

3. Select the purchase ledger created with Domestic Purchases -
Unregistered as the Nature of transaction .
If you are using a common purchase ledger, then based on the party ledger, the
nature of transaction is inferred as Domestic Purchases - Unregistered .

4. Select the stock item, and enter the quantity and rate.
5. Press Ctrl+A to accept.

Purchases within GCC Countries

If you are a registered dealer located in UAE and purchase goods or services from a
registered or unregistered dealer in Saudi Arabia or Bahrain, then you have to pay tax
on the purchases, based on reverse charge. You have to record a journal voucher to
book tax liability and claim input tax credit for the liability booked and the tax paid.

Record purchases within GCC countries

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .

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2. In Party's A/c Name , select the supplier belonging to a GCC country.

3. Select the purchase ledger created with Intra GCC Taxable Purchases as
the Nature of transaction .
4. Select the stock item, and enter the quantity and rate.
5. Press Ctrl+A to accept.
You can view the details of tax liability to be recorded for intra GCC purchases
under reverse charge in the Reverse Charge Summary .

Record journal vouchers for reverse charge liability

1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .

2. Click J : Stat Adjustment .

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3. Select Increase of Tax Liability as the Nature of adjustment .

4. In the Additional Details field, select the option Intra GCC Purchase .

5. Press Enter to return to journal voucher.

6. Debit the expense ledger, or the ledger grouped under Current Assets .
7. Credit the VAT ledger for the tax on intra GCC purchase under reverse charge.
Enter the tax Rate and Taxable Value in the VAT Details screen displayed.

8. Press Ctrl+A to accept the voucher.

Purchase of Capital Goods

When capital goods are purchased, the input tax can be claimed in the same voucher,
or using a journal voucher.
● Claim input credit fully in the purchase voucher
● Partial claim of input credit in purchase voucher
● Claim input credit using journal voucher
● Purchase of fixed assets without claiming tax credit

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To record purchase of capital goods by claiming VAT credit fully in the

same voucher

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases .

2. Press Ctrl+V to switch to voucher mode.

o Press F12: Configure twice, set the option Allow expenses/fixed assets
in purchase vouchers? to Yes .
o Press Ctrl+A to return to voucher screen.

3. Enter Supplier Invoice No. and Date .

4. Credit the party ledger and enter the amount.
5. Debit the fixed assets ledger (grouped under Fixed Assets and with Domestic
Taxable Purchase - Capital Goods selected as the Nature of transaction )
and enter the taxable value.
The VAT Details screen appears with VAT Rate , Taxable Value and Tax
Amount . The column Claim Credit will be set to Yes .

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6. Press Enter to return to the voucher.

7. Debit the VAT ledger.
8. Accept the voucher.

To record purchase of capital goods with partial claim of input credit

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases .

2. Press Ctrl+V to switch to voucher mode.

o Press F12: Configure twice, set the option Allow expenses/fixed assets
in purchase vouchers? to Yes .
o Press Ctrl+A to return to voucher screen.

3. Enter Supplier Invoice No. and Date .

4. Credit the party ledger and enter the amount.
5. Debit the fixed assets ledger (grouped under Fixed Assets and with Domestic
Taxable Purchase - Capital Goods selected as the Nature of transaction )
and enter the taxable value.
The VAT Details screen appears with VAT Rate , Taxable Value and Tax
Amount . The column Claim Credit will be set to Yes . Enter the Taxable
Value on which input credit will be claimed.

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6. Press Enter to return to the voucher.

7. Debit the VAT ledger and enter the tax credit that is partially being claimed.
8. Debit the expense ledger to account for the remaining amount of tax.
9. Accept the voucher.

To record purchase of capital goods to claim input credit in a separate

voucher

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases .

2. Press Ctrl+V to switch to voucher mode.

o Press F12: Configure twice, set the option Allow expenses/fixed assets
in purchase vouchers? to Yes .

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o Press Ctrl+A to return to voucher screen.

3. Enter Supplier Invoice No. and Date .

4. Credit the party ledger and enter the amount.
5. Debit the fixed assets ledger (grouped under Fixed Assets and with Domestic
Taxable Purchase - Capital Goods selected as the Nature of transaction )
and enter the taxable value.
The VAT Details screen, press Backspace on Taxable Value column, and
set Claim Credit to No .

6. Press Enter to return to the voucher.

7. Debit the ledger grouped under Current Assets .
8. Accept the voucher.

Claim input credit on capital goods purchase in journal voucher

1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .

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2. Click J : Stat Adjustment .

o Select Increasing Input Tax as the Nature of adjustment .
o In the Additional Details field, select the option Capital Goods .

o Press Enter to return to journal voucher.

3. Debit the VAT ledger for the tax on capital goods purchase. Enter
the VAT Rate and Taxable Value in the VAT Details screen displayed.

4. Credit the ledger grouped under Current Assets that was used during capital
goods purchase to account for input credit.
5. Press Ctrl+A to accept the voucher.

Record purchase of capital goods without claiming input credit

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases .

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2. Press Ctrl+V to switch to voucher mode.

o Press F12: Configure twice, set the option Allow expenses/fixed assets
in purchase vouchers? to Yes .
o Press Ctrl+A to return to voucher screen.

3. Enter Supplier Invoice No. and Date .

4. Credit the party ledger and enter the amount.
5. Debit the fixed assets ledger (grouped under Fixed Assets and with Domestic
Taxable Purchase - Capital Goods selected as the Nature of transaction )
and enter the value of the asset.
6. In the VAT Details screen, press Backspace on Taxable Value column, and
set Claim Credit to No .

7. Press Enter to return to the voucher.

8. Debit the expense ledger.
9. Accept the voucher.

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Import of Goods and Services

Under GCC VAT
An import transaction can be taxable, exempt, or zero
rated. Tax is applicable on reverse charge basis on
Related topics
taxable imports. However, when tax is paid at the
customs for the imports there is no need to apply tax Input Tax Credit
again on such goods.

Tally.ERP 9 provides you with the provision to record

purchase transactions for import of goods for which tax is paid to the customs. In
case tax is not paid at customs, you can record purchase transaction without the tax
value and then record journal voucher for tax applicable on reverse charge basis.

● Import of goods when tax is not paid to customs

● Import of goods when tax is paid to customs
● Import of services

Import of goods when tax is not paid to customs

You can account for the import of goods by using a purchase invoice, raise liability for
tax payment, and then record tax payment .

Record import of taxable goods

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .

2. In Party's A/c Name , select the supplier who belongs to a country outside
GCC.

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3. Select the purchase ledger created with Imports Taxable as the Nature of
transaction .
4. Select the stock item, and enter the quantity and rate.
5. Press Enter from the Amount field to display the VAT Details screen.

6. Press Ctrl+A to accept the assessable value displayed.

7. Enable the option Provide VAT details?
o Enter the Import Permit Number .
o Set the option Is VAT Paid at Customs to No .

o Press Enter to return to the purchase voucher.

8. Press Ctrl+A to accept.

Record journal vouchers for reverse charge liability

1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .

2. Click J : Stat Adjustment .
3. Select Increase of Tax Liability as the Nature of adjustment .
4. In the Additional Details field, select the option Imports .

5. Press Enter to return to the journal voucher.

6. Debit the expense ledger, or a ledger under Current Assets .

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7. Credit the VAT ledger for the tax on intra GCC purchase under reverse charge.
Enter the tax Rate and Taxable Value in the VAT Details screen displayed.

8. Press Ctrl+A to accept the voucher.

Import of goods when tax is paid to customs

When recording a purchase transaction for import of goods where VAT is paid at
customs, you have to record the assessable value on which tax was paid to customs
apart from value of goods. Further, you have to enable the option Is VAT Paid at
Customs in the transaction.

After recording the purchase transaction, you can record payment transaction for the
VAT paid to customs and then record journal voucher to claim input credit for the
same.

Record taxable import of goods with tax paid at customs

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .

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2. In Party's A/c Name , select the supplier who belongs to a country outside
GCC.
3. Select the purchase ledger created with Imports Taxable as the Nature of
transaction .
4. Select the stock item, and enter the quantity and rate.
5. Press Enter from the Amount field to display the VAT Details screen. Enter the
taxable value that was ascertained by the customs and based on which tax was
paid at customs in the Taxable Value field.
This value will not affect the item cost or the voucher total but only reflect in tax
returns as taxable value.

6. Press Ctrl+A to accept the assessable value displayed.

7. Enable the option Provide VAT details?
o Enter the Import Permit Number .
o Set the option Is VAT Paid at Customs to Yes .

o Press Enter to return to the purchase voucher.

8. Press Ctrl+A to accept.

The purchase transactions recorded by enabling the options Is VAT Paid at

Customs does not appear in the Reverse Charge Report as tax is already for the
imports.

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Record payment voucher for tax paid at customs

1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment .

2. Click S : Stat Payment .

3. Enter the month in which the tax was paid to customs in the Period
From and To fields.
4. Select the option VAT paid to Customs in the field Payment Type .
5. Select Imports in the field For .

6. Press Enter to return to payment voucher.

7. Select the cash or bank ledger in the field Account.
8. Select the ledger created under Current Assets under Particulars and enter
the tax amount paid to customs.
9. Press Enter to save.

If the error Partially overlapped , appears while saving the payment voucher:

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● Press F11 > F3 > set the Periodicity to Monthly , and save the Statutory
and Taxation screen.
● Save the payment voucher.

You can then change the Periodicity to Quarterly , in the Statutory and
Taxation screen.

Import of Services
You can account for the import of services by using a purchase invoice, raise tax
liability in your books of accounts, and then pay it to the department. Since no goods
are involved here, record the purchase as an accounting voucher.
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
2. Click I : Accounting Invoice .

3. In Party's A/c Name , select the service provider belonging to a country outside
GCC.
4. Under Particulars , select the service ledger grouped under Purchase
Accounts , with Imports Taxable as the Nature of
transaction and Services as the Type of supply .
5. Press F12: Configure .
o Enable the option Provide VAT details?
o Enter the Import Permit Number .

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o Press Enter to return to the purchase screen.

6. Press Ctrl+A to accept.

Export Sales Under GCC VAT

Exports include sales made to non-VAT-
Related topics
implementing GCC countries or countries outside
GCC. In both the cases, Tally.ERP 9 will Party Ledgers
automatically categorise them as exports and not
calculate tax. You can record the export of goods Sales and Invoice Printing
using a sales voucher.

Record exports to a party in a non-VAT-implementing GCC country

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

2. In Party A/c name , select the party who is located in non-VAT implementing
GCC country.
3. Select the sales ledger created with Exports as the Nature of transaction .
4. Select the goods that are sold and enter the Quantity and Rate .
Click A : Tax Analysis to view tax details. Click F1 : Detailed to view the tax
break-up.

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5. Press Ctrl+A to accept.

Record export sales to a party outside GCC countries

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

2. In Party A/c name , select the party who is located outside the GCC countries.
3. Select the sales ledger created with Exports as the Nature of transaction .
4. Select the goods that are exported and enter the Quantity and Rate .
Click A : Tax Analysis to view tax details. Click F1 : Detailed to view the tax
break-up.

5. Press Ctrl+A to accept.

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