UAE VAT return for Odoo

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This APP allows you to file UAE taxes according to the TRA rules and regulations in the UAE, it adds a lot of new functionalities related to filing taxes with the government in a user friendly way, the app will pass automatic journal entries, register payment with the bank and also allows adjustments.

Configuration:

Configure taxes as per below:

TRN field added on customer and supplier masters:

Customer invoice:

The newly designed customer invoice includes all the fields necessary to file VAT.

The form will automatically filter taxes according to the sale location, select sale location first then select taxes from the drop down list as per below. The sale location filed is important for tax filing as we will see later

Vendor bills:

The vendor bill was redesigned to be aligned with the TRA requirements:

Applicable taxes will automatically show along with the VAT tax accounts

The Workflow:

Using the vat return menu item, you can file a new tax return

Clicking on the Vat return will open this new form that shows all the VAT filings that were done during various periods, it also shows the status of these filings (New, Validated, Paid, Rollover)

The new VAT file form:

Click on compute tax to get all amounts:

Click on any of the tax lines to see corresponding records:

Click on the Reverse Charge tab to see all reverse charges:

Tax Adjustments:

If you need to adjust any of the taxes configured, you can use our tax adjustment form that was designed to adjust any tax (sales or purchase):

When the form is validated, journal entries are automatically posted for you under Account details tab:

Tax Adjustments:

After validation, you can go ahead and pay the government the net amount::

If the net amount is negative, the system will ask you if you would like to receive a refund from the government or whether you would like to roll over the credit to the next filing period. :

Filling Data on the TRA website:

Our module was designed to be user friendly and allow the user to easily file data on the tax authority website, the original TRA form 201 looks like this:

On the form click on print UAE Vat return:

The report will look exactly like the TRA form (201):

Copy and paste the amounts from our report directly to the TRA form, it’s that easy! Another report looks like this:

Click on the Export report to get the excel sheet format:

To get taxes balance, fill in the details:

Click on any record to drill down to the journal entries level:

Another detailed report that allows you to compare data across multiple periods:

Pivot table view:

Reverse Charges:

Under VAT in UAE, on certain notified supplies, the recipient or the buyer of goods or services is responsible to pay the tax to the Government, which is known as the reverse charge mechanism. In UAE VAT, the following supplies are under reverse charge:

Imports of concerned goods or concerned services for business purposes

Taxable supply of any crude or refined oil, unprocessed or processed natural gas, or any hydrocarbons for resale or to produce and distribute any form of energy by registered supplier to registered buyer in the State of UAE

Supply of goods or services by a supplier who does not have a place of residence in the state to a taxable person who has a place of residence in the State of UAE

As shown in the above image, the recipient needs to declare only the net value the value of reverse charge supplies and applicable VAT amount. The value and the output VAT of the following type of reverse charge supplies should be included in the box no 3 ‘supplies subject to the reverse charge provisions’:

Services received from foreign suppliers which are subject to the standard rate of VAT

Services received from foreign suppliers which are subject to the zero rate of VAT

Goods received which are subject to the reverse charge provisions and have not been declared to UAE customs (For example, import through an import declaration)

Local supplies subject to the reverse charge provisions (For example, specific supplies within the oil and gas industry)

Please note, imports of goods into the UAE which are subject to the reverse charge provisions have been declared to UAE customs and therefore should be reported in Box 6 of the VAT Form 201:

Reverse Charge example:

If you have used services from a supplier outside UAE and these services were subject to reverse charges, open a new vendor bill and fill in the details as follows:

The reverse charge tick box must be ticked, do not select any taxes from the drop down list. Click on the reverse charge click button that was enabled, this will pop up new form :

Fill in the details above and the reverse charge will be automatically calculated. :

Reverse charge entry:

Now validate the form journal Entry automatically created

Let us explore the case where you might have imported some goods from outside UAE that fall under reverse charge, create a new vendor bill and fill in the form as per below:

Validate the bill and make the payment:

When your goods arrive to the port / airport, click on Bill of Entry to create a new bill of entry:

fill in the details of the bill of entry as follows:

Click on compute reverse charges to automatically calculate all applicable RC taxes:

Note: the system is flexible enough to allow a declared amount that is different from the total amount mentioned on the bill.

Click on the post journal entries button to automatically post entries for both customs and reverse charges.

Click on the account details to see the journal entries that were created for you:

Tax journal entry:

Customs journal entry:

Click on register payment to pay the customs charges:

Payment journal entries:

On the vendor bill, you can now see a new tab showing your new bill of entry for this import shipment:

Go back to the vendor bill and click Bill of Entry to see the same record:

You can see the effects of reverse charges during tax filing: