https://help.tallysolutions.com/docs/te9rel64/Tax_International/GCC_VAT/import_for_subsequent_sales_under_gcc_vat.htm

Import for Subsequent Sales Under GCC VAT

Related topics

Import of Goods and Services

Purchases

When goods are imported from other countries and transferred (subsequent sales) to GCC countries, import VAT is applicable on the value of the imported goods under reverse charge.  The VAT paid on such imports can be claimed as input credit by customer in GCC countries to whom these goods are subsequently sold (consumption country).

Tally.ERP 9 enables you to record the imports for subsequent sales and also has a provision to create tax liability for the VAT on imports such that the VAT paid can be claimed by customer.

Import for subsequent transfer

Subsequent sales

Import for Subsequent GCC Transfer

Record import of goods for subsequent GCC Transfer

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.

3. Select the purchase ledger created with Import for Subsequent GCC Transfers as the Nature of transaction .

4. Select the stock item, and enter the quantity and rate.

5. Press Ctrl+A to accept.

Record reverse charge liability

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

2. Click J : Stat Adjustment .

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

o In the Additional Details field, select the option Imported for Subsequent GCC Transfers .

o Press Enter to return to the journal voucher.

3. Debit the expense ledger, or the ledger grouped under Current Assets .

4. 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.

5. Press Ctrl+A to accept the voucher.

Subsequent Sales

When you are into a business of importing goods for subsequent sale, you will be paying tax of import of goods. The subsequent sale (exports) to other GCC countries, or sometimes outside GCC countries, will not be charged with VAT.

In case you are subsequently transferring goods to party within GCC countries, the party will be able to claim input credit for the VAT amount paid by you during import of goods.

To recover your expenses incurred by paying VAT on import, you can add the tax value to the value of the goods, or include it as an additional expense in the sales transaction.

In case you are not adding profits to the item value in the subsequent imports, a separate sales transactions can be recorded for the services rendered in importing and exporting of goods.

Record subsequent sales to intra GCC customers

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

2. In Party A/c name , select the ledger of the customer belonging to a GCC country.

3. In the Sales ledger field, select the ledger created with Intra GCC Subsequent Transfers as the Nature of transaction .

4. Select the stock items imported for subsequent supply, and enter the quantity and rate.

5. Press Ctrl+A to accept.

Record subsequent sales to customers outside GCC countries

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

2. In Party A/c name , select the ledger of the customer outside GCC countries.

3. In the Sales ledger field, select the ledger created by selecting Exports as the Nature of transaction .

4. Select the items imported for subsequent supply, enter the quantity and rate.

5. Press Ctrl+A to accept.