https://help.tallysolutions.com/docs/te9rel63/Tax_International/GCC_VAT/record_import_of_goods.htm

Import of Goods and Services Under GCC VAT

Related topics

Input Tax Credit

An import transaction can be taxable, exempt, or zero rated. Tax on import is liable for reverse charge.

     Import of goods

     Import of services

 

Import of goods

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

Record taxable import of 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.

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 F12: Configure.

o     Enable the option Provide VAT details?

o     Enter the Import Permit Number.

o     Press Enter to return to the purchase voucher.

6.    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.

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

o     In the Additional Details field, select the option Imports.

o     Press Enter to return to the journal voucher.

3.    Debit the expense ledger, or a ledger 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.

 

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.

Record purchase of services

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.

o     Press Enter to return to the purchase screen.

6.    Press Ctrl+A to accept.