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https://help.tallysolutions.com/docs/te9rel51/Tax_International/Botswana/Purchase_of_Capital_Goods.htm

Purchase of Capital Goods

The Value Added Tax is payable at the rate of 12% on purchase of capital goods from Registered Persons.

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

Press F12: Configure and set Allow Expenses / Fixed Assets in Purchase Vouchers to Yes.

Click on As Voucher button (use key combination Ctrl+V if the screen is displayed in Invoice mode).

Purchase of Capital Goods in the Country

  1. Enter the Supplier Invoice number and date.

  2. Credit the Supplier Ledger from the List of Ledger Accounts.

  3. Enter the purchase value in Credit field.

  4. In the Bill-wise Details for sub-screen, select the Type of Ref from the list of Method of Adj and enter the Name, Due Date, Credit Days and the Amount.

  5. Debit Equipment created under Fixed Assets with the VAT/Tax class - Purchases @ 12% (Capital Goods).

  6. Enter the value excluding the VAT amount.

  7. Debit Input VAT @ 12% (Capital Goods) ledger grouped under Duties & Taxes with the Type of Duty/Tax as VAT, VAT Sub Type as Input VAT and VAT/Tax class - Input VAT @ 12% (Capital Goods).

  8. The Debit Amount is automatically entered.

  9. Enter the details in the field Narration, if required.

  1. Press Y or Enter to accept and save.

Note: The gross assessable value of purchases recorded using the VAT/Tax class - Purchases @ 12% (Capital Goods) is captured in Standard Rate column of box 11. The input tax entered using the VAT ledger predefined with VAT/Tax class - Input VAT @ 12% (Capital Goods) gets displayed in Total Input Tax Claim column.

Import of Capital Goods

In the purchase voucher,

  1. Enter the Supplier Invoice number and date.

  2. Credit the Supplier Ledger from the List of Ledger Accounts.

  3. Enter the purchase value in Credit field with the foreign currency symbol - Z$.

  4. The Forex Rate of Exchange screen will be displayed for entering the conversion factor. Enter the conversion factor and accept the Forex Rate of Exchange screen.

  1. In the Bill-wise Details for sub-screen, select the Type of Ref from the list of Method of Adj and enter the Name, Due Date, Credit Days and the Amount.

  2. Debit Office Equipment grouped under Fixed Assets with the VAT/Tax class - Purchases - Capital Imports @ 12%.

  3. Enter the value excluding the VAT amount with the foreign currency symbol - Z$.

  4. The Forex Rate of Exchange screen will be displayed for entering the conversion factor. Enter the conversion factor and accept the Forex Rate of Exchange screen.

  1. Debit Input VAT @ 12% on Capital Imports ledger grouped under Duties & Taxes with the Type of Duty/Tax as VAT, VAT Sub Type as Input VAT and VAT/Tax class - Input VAT @ 12% on Capital Imports.

  2. The Debit Amount is automatically entered.

  3. The Forex Rate of Exchange screen will be displayed with the currency conversion factor.

  4. Enter the details in the field Narration, if required.

  1. Press Y or Enter to accept and save.

Note: The gross assessable value of purchases recorded using the VAT/Tax class - Purchases - Capital Imports @ 12% is captured in Standard Rate column of box 13. The input tax entered using the VAT ledger predefined with VAT/Tax class - Input VAT @ 12% on Capital Imports gets displayed in Total Input Tax Claim column.

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