Paying Tax Liabilities for GCC States
To pay a tax liability:
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Close the tax period before you do your tax reporting and tax payments. (Go to Setup > Accounting > Taxes > Manage Tax Periods.)
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Run and review the VAT on Sales and VAT on Purchases summary and detailed reports. If necessary for adjustments, reopen the tax period and run the reports again.
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If VAT on Sales is greater than VAT on purchases, prepare and post an appropriate journal entry that:
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Debits the VAT on Sales account for the amount shown on the VAT on Sales report
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Credits the VAT on Purchases account for the amount shown on the VAT on Purchases report
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Credits the VAT Liability account for the net amount
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When it is time to pay your tax liability, you can write a cheque or do a bank transfer.
You can write a tax liability cheque for any non-U.S. edition or nexus at Transactions > Bank > Write Tax Liability.
To write a tax liability check:
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Go to Transactions > Bank > Pay Tax Liability.
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Select the appropriate bank account from which the payment is made.
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Select the VAT liability tax account for the net amount.
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In the Payee field, select the tax agency you are writing this cheque to. To set a tax agency to appear by default in this field, go to Setup > Accounting > Taxes > Set Up Taxes, and select the default agency in the Tax Agency field.
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Enter the date for this transaction.
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Select a posting period for this cheque.
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In the Amount field, enter the amount of the tax liability payment.
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In the Memo field, enter the memo that should appear on the printed cheque.
You can print this check at Transactions > Management > Print Checks and Forms (Administrator).