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Generate VAT Report in TallyPrime to File Bahrain VAT Returns

VAT return is filed by registered VAT dealers with the VAT authorities at the end of the reporting period. You can generate the VAT report in TallyPrime and use it to file the returns.

 

Display the VAT Return report

  1. Gateway of Tally > Display More Reports > VAT Reports > VAT Return.
    Alternatively, press Alt+G (Go To) > type or select VAT Return> and press Enter.

The different sections of the report are:

You can select any row and press Enter to drill down and view detailed information.

 

Returns summary

This section provides a summary of all the transactions recorded in the reporting period. The transactions are further classified based on the presence of VAT details in the vouchers, and their effect on the returns.

  • Total Vouchers: Displays the total number of vouchers recorded in the reporting period. Drill down from this row to view the Statistics report, which displays the list of voucher types, with the corresponding voucher count.
  • Included in Returns: Displays the number of vouchers that have all the information in corresponding masters and transactions to comply with requirements of filing returns. These vouchers are included in the returns for the period.
  • Not relevant for Returns: Displays the number of vouchers which are not part of the returns, as VAT details are not provided in these transactions. These transactions will have no implication on the returns.
  • Uncertain Transactions (Corrections needed): Displays the number of vouchers with insufficient VAT-related information. These are exceptions that need to be resolved for the vouchers to be included in the returns. These vouchers are not listed under Included in Returns or Not relevant for Returns row. Drill down from this row to view the list of exception types and number of exceptions under each type. These exceptions can be resolved right away, without having to alter vouchers or update masters one by one.

The following types of vouchers may appear here: contra vouchers, payroll vouchers, order vouchers, inventory vouchers, memorandum vouchers, reversing journals.

Parties with invalid TRN: Displays the number of transactions excluded from the return due to invalid TRN for party ledgers.

 

Particulars (Computation details)

This section displays the transaction values considered in the returns and annexures along with the amount of liability, input credit, adjustments and VAT payable or refundable. The assessable value of sales and purchases, and the tax applicable, if any, are displayed under respective columns for the specific period. Drill down reports are provided for Local Supplies, GCC Supplies, Outside GCC Supplies, Local Purchases, GCC Purchases, Outside GCC Purchases, and VAT adjustments up to the transaction level.

The excess input credit of previous period will appear in the current period, if the

  • VAT ledger has debit balance as of previous return period
  • Return is saved.

In case you want to provide opening balance for input VAT, you can record a journal voucher for opening balance by debiting and crediting VAT ledger with the amount that needs to be carried forward.

  • Sales (Outwards): Displays the total sales (local, GCC and exports), which include taxable, exempt, and zero rated sales with the corresponding tax amount. The tax liability recorded for reverse charge, advance receipt and VAT adjustments for sales is also displayed. In the detailed mode Alt+F5 (Detailed) the names of the emirate/region to which these sales were made are also displayed for each type of sales.
  • Purchases (Inwards): Displays the total purchase (local, GCC and imports) which include taxable, exempt, and zero rated purchases with the corresponding tax amount. The input credit for reverse charge liability, capital goods purchase, excess input credit carried forward, and VAT adjustments for inwards is also displayed.
  • VAT Payable or Refundable: Displays the aggregate of taxes payable or refundable for a particular period. Using this information, the required adjustment entries can be recorded. Excess input tax credit remaining after nullifying the VAT liability against the input VAT is displayed as refundable.

 

Payment Details

This section contains statistics of all VAT payment vouchers of the current period. Expenses such as payment made to party, petty expenses, or statutory payments other than VAT are not displayed.

  • Tax payments (included): Drill down from this row to view all payment vouchers recorded for VAT and other dues like interest and penalty (using the Stat Payment feature), made for the return period.
  • Tax payments (not included/uncertain): Drill down from this row to view tax payment vouchers that are not included in the returns due to insufficient information.
  • VAT Paid: Displays the amount of VAT paid for the reporting period. Drill down from this row to view the list of payment vouchers recorded by VAT remittance.
  • Balance VAT Payable: Displays the balance VAT payable for the period.

 

Configuration

Press F12 (Configure) and enable Show break-up of nett values: Enable this option to view the gross and deductions or additions, resulting from return of goods or change in value of goods, break-up for the net values shown in the Particulars section of the report.

 

Save Returns for VAT in GCC

You can save VAT returns for any period and view the saved returns from the Return Transaction Book. You can recompute your returns and save it as revised or you can overwrite it, in case any transaction or master is modified in the period for which returns are saved. Once the returns are recomputed you can either overwrite the existing saved copy of the returns or save as revised to retain the originally saved returns.

 

Save VAT returns

  1. Gateway of Tally > Display More Reports > VAT Reports > VAT Return.
    Alternatively, press Alt+G (Go To) > type or select VAT Return> and press Enter.

    A message about unsaved return appears under the header.
  2. Press Alt+B (Save Return). The following message appears when there are no exceptions to be resolved:
  3. Click Yes to save.
    Note: The message appears as shown below, if there are exceptions to be resolved:

    Click No to cancel. Then, resolve the exceptions in the periodic returns and proceed to save the returns.
  4. If the Alt+B (Save Return)button is not active/highlighted:
    • Press F11 (Features) > set Enable Value added Tax (VAT) to Yes.
    • Set the Periodicity to Monthly, and save the Company Statutory Returns screen.
    • The Alt+B (Save Return) button gets highlighted. Press Alt+B (Save Return) to save the report.
      You can then change the Periodicity to Quarterly, in the Company Statutory Returns screen.

 

Recompute the changes and save as revised

  1. Gateway of Tally > Display More Reports > VAT Reports > VAT Return.
    Alternatively, press Alt+G (Go To) > type or select VAT Return> and press Enter.

    A message to recompute the changed return appears under the header.
  2. Press Alt+W (Recompute). The buttons Alt+B (Overwrite) and Alt+H (Save as Revised) appear once the return is recomputed.
  3. Press Alt+H (Save as Revised) to create a revised return with modified details. If there are no exceptions, the following message appears:
  4. Click Yes to save the return as revised.
  5. If the Alt+B (Save Return)button is not active/highlighted:
    • Press F11 (Features) > set Enable Value added Tax (VAT) to Yes.
    • Set the Periodicity to Monthly, and save the Company Statutory Returns screen.
    • The Alt+B (Save Return) button gets highlighted. Press Alt+B (Save Return) to save the report.
      You can then change the Periodicity to Quarterly, in the Company Statutory Returns screen.
      Note: The message appears as shown below if there are exceptions to be resolved:
  6. Click No to cancel. Then, resolve the exceptions in the periodic returns and proceed to save the returns.

 

Save the changes and overwrite saved returns

  1. Gateway of Tally > Display More Reports > VAT Reports > VAT Return.
    Alternatively, press Alt+G (Go To) > type or select VAT Return> and press Enter.
  2. Press Alt+W (Recompute). The buttons Alt+B (Overwrite) and Alt+H (Save as Revised) appear once the return is recomputed.
  3. Press Alt+B (Overwrite) to overwrite the existing return details with modified details. The message appears as shown below, if there are exceptions:
  4. Click Yes to overwrite the return.
  5. If the Alt+B (Save Return) button is not active/highlighted:
    • Press F11 (Features) > set Enable Value added Tax (VAT) to Yes.
    • Set the Periodicity to Monthly, and save the Company Statutory Returns screen.
    • The Alt+B (Save Return) button gets highlighted. Press Alt+B (Save Return) to save the report.
      You can then change the Periodicity to Quarterly, in the Company Statutory Returns screen. 
      Note: When exceptions exist, the following message appears:
  6. Click No to cancel. Then, resolve the exceptions in the periodic returns and proceed to save the returns.

 

File VAT Returns (Bahrain)

You can export the return details from TallyPrime to the MS Word format specified by the VAT authorities.

  1. Gateway of Tally > Display More Reports > VAT Reports > VAT Return.
    Alternatively, press Alt+G (Go To) > type or select VAT Return> and press Enter.
  2. Press Alt+P (Print) and select Return Form to view details in MS Word format.
  3. Press Enter to print. The printed file appears in MS Word format.
  4. Login to the NBR portal and enter these details in the VAT Return Form.

 

Description of Details Captured in MS Word file

The VAT Return Form in the NBR portal appears as shown below:

A brief explanation about the details captured in MS Word file is given below:

Field Names of VAT Return Form

Description for Amount

Description for Adjustment/Apportionment

VAT amount

1 – Standard rated Sales

Current period transactions – taxable at 5%

Displays the nett assessable values of sales, sales returns, cancellation of sales and increase in sales (recorded in debit note) with the following Nature of transaction:

  • Domestic Taxable Supplies
  • Domestic Supplies – Transfer of Right to Use
  • Domestic Supplies – Profit Margin

Adjustments recorded in current period, against sales of previous period – taxable at 5%

Displays the values of sales returns of previous period, recorded in the current period with the following Nature of transaction:

  • Domestic Taxable Supplies
  • Domestic Supplies – Transfer of Right to Use
  • Domestic Supplies – Profit Margin

Journal Vouchers

Displays the value of journal vouchers recorded for:

  • Decrease of Tax Liability by selecting:
    • Bad Debts.
    • Cancellation of Tax Liability for Advance Receipts
  • Increase of Tax Liability by selecting
    • Exempt and Other Than Business Purposes
    • Imports
    • Imported for Subsequent GCC Transfers
    • Intra GCC Purchase
    • On Account of Advance Receipts
    • Sale on Profit Margin
    • Transfer of Own Goods to Other GCC Countries(select the country)
    • Without Consideration or Less Consideration
  • Increase of Tax Liability & Input Tax Credit by selecting Imports or Intra GCC Purchase

VAT on transactions and adjustments recorded in current period

Displays the VAT amount on sales, sales returns and increase in sales (recorded in debit note) with the following Nature of transaction:

  • Domestic Taxable Supplies
  • Domestic Supplies – Transfer of Right to Use
  • Domestic Supplies – Profit Margin

Displays the value of VAT ledger (not the assessable value) for the following journal vouchers:

  • Decrease of Tax Liability by selecting:
    • Bad Debts.
    • Cancellation of Tax Liability for Advance Receipts
  • Increase of Tax Liability by selecting
    • Exempt and Other Than Business Purposes
    • Imports
    • Imported for Subsequent GCC Transfers
    • Intra GCC Purchase
    • On Account of Advance Receipts
    • Sale on Profit Margin
    • Transfer of Own Goods to Other GCC Countries(select the country)
    • Without Consideration or Less Consideration
  • Increase of Tax Liability & Input Tax Credit by selecting Imports or Intra GCC Purchase

2 – Sales to registered taxpayers in other GCC States

Current period transactions – taxable at 0%

Displays the nett assessable values of sales, sales returns, cancellation of sales and increase in sales (recorded in debit note) with the following Nature of transaction:

  • Intra GCC Supplies
  • Intra GCC Subsequent Transfers

Adjustments recorded in current period, against sales of previous period – taxable at 0%

Displays the values of sales returns of previous period, recorded in the current period with the following Nature of transaction:

  • Intra GCC Supplies
  • Intra GCC Subsequent Transfers

As the transactions are of 0% VAT rate, this field will be left blank.

3 – Sales subject to domestic reverse charge mechanism

This is currently not supported, hence will be left blank.

4 – Zero rated domestic sales

Current period transactions – taxable at 0%

Displays the nett assessable values of sales, sales returns, cancellation of sales and increase in sales (recorded in debit note) with the Nature of transaction – Domestic Zero Rated Supplies.

Adjustments recorded in current period, against sales of previous period – taxable at 0%

Displays the values of sales returns of previous period, recorded in the current period with the Nature of transaction – Domestic Zero Rated Supplies.

As the transactions are of 0% VAT rate, this field will be left blank.

5 – Exports

Current period transactions – taxable at 0%

Displays the nett assessable values of sales, sales returns, cancellation of sales and increase in sales (recorded in debit note) with the Nature of transaction – Exports.

Adjustments recorded in current period, against sales of previous period – taxable at 0%

Displays the values of sales returns of previous period, recorded in the current period with the Nature of transaction – Exports.

As the transactions do not attract tax, this field will be left blank.

6 – Exempt sales

Current period transactions – taxable at 0%

Displays the nett assessable values of sales, sales returns, cancellation of sales and increase in sales (recorded in debit note) with the Nature of transaction – Domestic Exempt Supplies.

Adjustments recorded in current period, against sales of previous period – taxable at 0%

Displays the values of sales returns of previous period, recorded in the current period with the Nature of transaction -Domestic Exempt Supplies.

As the transactions do not attract tax, this field will be left blank.

7 – Total Sales

Value will be autocalculated in the VAT return.

8 – Standard rated domestic purchases

Current period transactions – taxable at 5%

Displays the nett assessable values of purchase, purchase returns, cancellation of purchases and increase in purchases (recorded in credit note) with the following Nature of transaction:

  • Domestic Taxable Purchases
  • Domestic Purchases – Transfer of Right to Use
  • Domestic Taxable Purchases – Capital Goods (when ledger is grouped under Fixed Assets)

Adjustments recorded in current period, against purchases of previous period – taxable at 5%

Displays the values of purchase returns of previous period, recorded in the current period with the following Nature of transaction:

  • Domestic Taxable Purchases
  • Domestic Purchases – Transfer of Right to Use
  • Domestic Taxable Purchases – Capital Goods (when ledger is grouped under Fixed Assets)

Also, purchases of these natures of transaction made in the current period, having Original invoice date of previous period, will be captured here.

Journal Vouchers

Displays the value of journal vouchers recorded for:

  • Decrease of Tax Liability by selecting Capital Goods.
  • Increase of Tax Liability by selecting Capital Goods.
  • Increasing Input Tax by selecting Capital Goods or Recoverable VAT from Other GCC Countries.
  • Reversal of Input Tax by selecting:
    • Capital Goods
    • Bad Debts.
    • Exempt and Other Than Business Purposes

VAT on transactions and adjustments recorded in current period

Displays the VAT amount on the nett value of purchases recorded with the following Nature of transaction:

  • Domestic Taxable Purchases
  • Domestic Purchases – Transfer of Right to Use
  • Domestic Taxable Purchases – Capital Goods (when ledger is grouped under Fixed Assets)

Displays the value of VAT ledger (not the assessable value) for the journal vouchers recorded with:

  • Decrease of Tax Liability by selecting Capital Goods.
  • Increase of Tax Liability by selecting Capital Goods.
  • Increasing Input Tax by selecting Capital Goods or Recoverable VAT from Other GCC Countries.
  • Reversal of Input Tax by selecting:
    • Capital Goods
    • Bad Debts.
    • Exempt and Other Than Business Purposes

9 – Imports subject to VAT either paid at customs or deferred

Displays the assessable value entered for VAT ledger in journal vouchers recorded for:

  • Account for and Claim VAT Paid to Customs by selecting Imports or Intra GCC Purchase.
  • Increasing Input Tax by selecting Claiming VAT Paid to Customs

This field will be left blank.

Journal vouchers

Displays the VAT amount (not the assessable value) in journal vouchers recorded for:

  • Account for and Claim VAT Paid to Customs by selecting Imports or Intra GCC Purchase.
  • Increasing Input Tax by selecting Claiming VAT Paid to Customs.

10 – Imports subject to VAT accounted for through reverse charge mechanism

Current period transactions

Displays the nett assessable values of purchase, purchase returns, cancellation of purchases and increase in purchases (recorded in credit note) with the following Nature of transaction:

  • Intra GCC Taxable Purchases
  • Imports Taxable (when the option Is VAT Paid at Customs is set to No in the invoice).

Displays the assessable value entered for VAT ledger in journal vouchers recorded for:

  • Increase of Tax Liability & Input Tax Credit by selecting Imports or Intra GCC Purchase.
  • Increasing Input Tax by selecting Imports or Intra GCC Purchase.
  • Reversal of Input Tax by selecting Imports or Intra GCC Purchase.

Displays the VAT amount (not the assessable value) in journal vouchers recorded for:

  • Increase of Tax Liability & Input Tax Credit by selecting Imports or Intra GCC Purchase.
  • Increasing Input Tax by selecting Imports or Intra GCC Purchase.
  • Reversal of Input Tax by selecting Imports or Intra GCC Purchase.

11 – Purchases subject to domestic reverse charge mechanism

This is currently not supported, hence will be left blank.

12 – Purchases from non-registered suppliers, zero-rated/ exempt purchases

Current period transactions

Displays the nett assessable values of purchase, purchase returns, cancellation of purchases and increase in purchases (recorded in credit note) with the following Nature of transaction:

  • Domestic Exempt Purchases
  • Domestic Purchases – Unregistered
  • Domestic Zero Rated Purchases.

Displays the values of purchase returns of previous period, recorded in the current period with the following Nature of transaction:

  • Domestic Exempt Purchases
  • Domestic Purchases – Unregistered
  • Domestic Zero Rated Purchases.

Also, purchases of these natures of transaction made in the current period, having Original invoice date of previous period, will be captured here.

As the transactions do not attract tax, this field will be left blank.

13 – Total purchases

Value will be autocalculated in the VAT return.

14 – Total VAT due for current period

Value will be autocalculated in the VAT return.

15 – Corrections from previous period (between BHD ±5,000)

This field will be left blank.

This field will be left blank.

Displays the VAT amount (not assessable value) entered for VAT ledger in journal vouchers recorded for:

  • Decrease of Tax Liability by selecting:
    • Corrections/Amendments
    • Others
  • Increase of Tax Liability by selecting:
    • Corrections/Amendments
    • Interest
    • Others
    • Penalty
  • Increasing Input Tax by selecting:
    • Corrections/Amendments
    • Others
  • Reversal of Input Tax by selecting:
    • Corrections/Amendments
    • Others

16 – VAT credit carried forward from previous period(s)

This field will be left blank.

This field will be left blank.

Displays the VAT amount:

  • Brought forward from previous period.
  • Entered for VAT ledger in journal vouchers recorded for Opening Balance.

17 – Net VAT due (or reclaimed)

Value will be autocalculated in the VAT return.

Login to the National Bureau for Revenue website with your email ID and Password and submit the online VAT Return Form.

 

Resolve Mismatch in Transactions Under VAT in GCC

The Incomplete/mismatch in information (to be resolved) bucket in the Return Summary section of the VAT Return report lists the number of vouchers that are not included in the returns due to exceptions in information required for inclusion in returns. Drill down from this row to view the Summary of Exceptions screen.

You can identify the exceptions and correct the transactions before filing tax returns. The Vouchers with incomplete/mismatch in information for VAT returns appears as shown below:

The vouchers are grouped under different exception types such as:

  • Nature of transaction, assessable value, rate of tax modified in voucher
  • Incorrect tax type selected in tax ledger
  • Mismatch due to tax amount modified in the voucher
  • Vouchers with incomplete/incorrect adjustment details

The exceptions are listed in the order of priority, based on the importance of the information for generating returns and audit file. Hence, a voucher with multiple exceptions is listed in the exception type higher up the order. Once that exception is resolved, the voucher will move down to the next exception type. Such vouchers with multiple exceptions continue to be listed as exceptions until all incomplete/mismatch information is resolved. This will help you clear all exceptions before filing the returns.

However, vouchers with only one exception are moved to Included in returns list after that exception is resolved.

 

Exception Resolution

You can view the exceptions related to masters and transactions, and resolve them

No. of voucher with incomplete/mismatch in information

Displays the total number of vouchers with exceptions. Drill down from this row to view all the vouchers with exceptions, number of exceptions in each voucher, and type of exception.

To resolve all exceptions at once:

  1. Select No. of voucher with incomplete/mismatch in information.
  2. Press Enter to display Exception Resolution screen with the list of vouchers, number of exceptions in each voucher, and exception types. The Exception Resolution screen appears as shown below:
  3. Select any transaction and press Enter to display the Voucher Details Alteration screen which is divided into multiple sections, one for each exception in the voucher.
  4. Select or enter required information for the first exception type. Further, you can press Alt+W (Recompute) or Alt+J (Accept as is) to recompute or accept the details, respectively.
  5. Press Enter to navigate to the next exception type.
  6. Resolve the exceptions by providing details or using the buttons provided.
  7. Press Enter after all the exceptions in the voucher are resolved to view the next voucher with respective exceptions.
  8. Continue resolving the exceptions voucher by voucher, or press Esc to return to Exception Resolution screen.

Press Alt+H (Exclude Vouchers) in the Exception Resolution screen to exclude the voucher from returns.

 

Nature of transaction, assessable value, rate of tax modified in voucher

Displays the number of transactions in which the Nature of transaction, taxable value or rate of tax defined in the ledger master has been changed in the transaction.

Resolve this exception

  1. Select the exception Nature of transaction, taxable value, rate of tax modified in voucher.
  2. Press Enter. All the transactions of the exception type are displayed, as shown below:
  3. Select the required voucher.
  4. Press Alt+R (Resolve) to select Nature of transaction and enter other details manually, or press Alt+J (Accept as is). A message is displayed as shown below:
  5. Press Enter to accept.
  6. Similarly, accept the required vouchers.
  7. Press Ctrl+A to accept.

 

Incorrect tax type selected in tax ledger

Displays the number of transactions in which type of duty is invalid.

Resolve this exception

  1. Select the exception Incorrect tax type selected in tax ledger.
  2. Press Enter. All the transactions of the exception type are displayed, as shown below:
  3. Select the ledger with the correct tax type.
  4. Press Enter to save.

 

Mismatch due to tax amount modified in voucher

Displays the number of transactions in which there is a difference between the calculated and the entered tax amount. Also, if the difference is higher than the round-off value, the mismatch due to modified value can be resolved using one of the following options:

To define the round-off value

  • Press F12 (Configure) in vouchers with incomplete/mismatch in information screen.
  • Set Round-off margin value, as required.
  • Press Ctrl+A to accept.

In case the difference in tax amount is within the given round-off margin, the transaction is by default included for returns, and not set as an exception.

 

Recompute

Resolve the exception by recomputing the tax amount

  1. Select the exception Mismatch due to tax amount modified in voucher.
  2. Press Enter. All the transactions of the exception type are displayed.
  3. Navigate to the required transaction and press Enter.
  4. Press Alt+W (Recompute) to recalculate the tax amount.
  5. Press Ctrl+A to accept.

 

Create Adjustment

Resolve the exception by creating adjustment voucher

  1. Select the exception Mismatch due to tax amount modified in voucher.
  2. Press Enter. All the transactions of the exception type are displayed.
  3. Select the transaction that needs an adjustment entry to balance the difference amount.
  4. Press Alt+S (Create Adjustment).
  5. Record a journal voucher and assign the difference amount to the VAT ledger, and save the voucher.
  6. Similarly, adjustment transactions can be created for all the vouchers with a difference in tax amount.

 

Link Adjustment

Resolve this exception by linking to a journal transaction

  1. Select the exception Mismatch due to tax amount modified in voucher.
  2. Press Enter. All the transactions of the exception type are displayed.
  3. Select the required transaction.
  4. Press Alt+L (Link Adjustment) to display the list of adjustment transactions for linking to balance the difference amount.
  5. Select the transaction, and save.

Similarly, vouchers with exception can be linked to other vouchers.

 

Resolve

Resolve the exception by manually entering the tax amount

  1. Select the exception Mismatch due to tax amount modified in voucher.
  2. Press Enter. All the transactions of the exception type are displayed.
  3. Select the required transaction.
  4. Press Alt+R (Resolve), and enter the tax value in As per transaction column of the voucher.
  5. Press Ctrl+A to accept.

 

Accept as is

Accept the voucher as is

  • Select the exception Mismatch due to tax amount modified in voucher.
  • Press Enter. All the transactions of the particular exception are displayed.
  • Select the required voucher and press Alt+J (Accept as is). A message is displayed as shown below:
  • Press Enter to accept.
  • Similarly, accept the required vouchers.
  • Press Ctrl+A to accept.

 

Voucher with incomplete/incorrect adjustment details

Displays the number of journal transactions in which Nature of adjustment is not selected.

Resolve this exception

  1. Select the exception Voucher with incomplete/incorrect adjustment details.
  2. Press Enter. All transactions are displayed as shown below:
  3. Select the Nature of Adjustment and Additional Details for each voucher.
  4. Press Ctrl+A to accept.

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