ERPNext has the features which allows generation of invoices complaint to UAE VAT taxation. However, it doesn’t provide the VAT return report (VAT 201?) which is pre-defined by the UAE govt.
We have already connected with one of the ERPNext user in UAE and learnt about the data source for each point in the report. We will highly appreciate your input where confirmation or correction is needed, so that we can make a feature which covers the all possible scenarios.
1. Emirates-wise Sales
It refers to Emirate-wise sales made in a specific time period. This values will be polulated based on Sales Invoices.
What we need to map is:
- Which address field is being used for tracking Emirate (City/State). Or should it be a separate select field in all the Emirates pre-listed?
- Provide From Date and To Date field for selection of period.
2. Tourist Scheme
We will need guidance what flags would be needed as:
- In the Sales Invoice to categorize it for Tourist.
- Also, if it is applied, will there be any difference on how VAT posting is done on the invoice?
- Are the tourist invoices not covered in the point 1 (emirates based sales)?
- The field also seems to be greyed-out. Does it mean that it’s source is somewhere else and not exported by the accounting solution used by the company?
3. Reverse Charge
- Document: Sales Invoice (please correct if needed)
- Add a field called Reverse Charges Applied - Yes / No
- If reverse charge applied as Yes, then
- VAT posting happens in the Liability account, but not added to the invoice Grand Total
- If reverse charge applied as No, then
- VAT value isn’t posted in the GL
In the following field, it will fetch the value of Purchase Invoices where Is Reverse Charge as Yes.
4. Zero Rated Supplies
The total value of Sales Invoice made for the items on which 0% VAT is applied.
5. Exempted Rated Supplies
The total value of Sales Invoice made for the items which are exempted from the VAT.
(for point 6 and 7)
6. Goods Imported into UAE
Fetched from the UAE custom’s portal. No need for manual intervention.
7 & 8. Only Totals and Adjustment
9. Standard Rated Expenses
It will include expense / purchases booked via:
- Purchase Invoice
- Journal Entry
- Payment Entry
10. Reverse Charge Applied
Calculated based on Purchase Invoice where Reverse Charge is applied.
- If yes, then VAT will not be added Grand Total but VAT liability will be booked
- If no, then VAT will not be booked
At the end of each section, there will be total’s section which is pretty standard.
Here are some of the standard queries.
- Is there a specific format (like XLS or JSON) in which export is required, for further upload on govt. portal?
- Adjustments would be handled on the govt. portal only? Or it could be added in the exported file?