/** * The main template file * * This is the most generic template file in a WordPress theme * and one of the two required files for a theme (the other being style.css). * It is used to display a page when nothing more specific matches a query. * E.g., it puts together the home page when no home.php file exists. * * @link https://developer.wordpress.org/themes/basics/template-hierarchy/ * * @package WordPress * @subpackage Tally * @since 1.0.0 */ ?>
The input tax recovery on reverse charge supplies should be reported in the box no. 10 of VAT form 201 during Tax Return as shown below:
As shown above, the box no. 10 of the VAT form 201 allows you to recover any VAT you have paid as output tax under the reverse charge mechanism declared in boxes 3, 6 and 7 of this form. To know more about box no. 3, 6, and 7, please read ‘Reverse Charge supplies in VAT Return Form 201’ and Goods Imported into UAE in VAT Return Form 201’.
If you are entitled to recover some or all of the VAT declared under the reverse charge supplies (box 3, 6 and 7), you should include the net value of the expenses you are eligible to recover and the VAT applicable on those expenses. Any amount of the VAT incurred on reverse charge expenses which are not recoverable, should not be reported in these boxes.
For example, lets assume that you have previously declared supplies of 100,000 AED and 5,000 AED output VAT under the reverse charge supplies in box no. 3 of the VAT Form 201. If you are entitled to recover all of the VAT incurred under the reverse charge mechanism, you should declare the 100,000 AED in ‘Amount (AED)’ column and 5,000 AED in ‘Recoverable VAT’ column of box no. 10.
In case, you are entitled to recover only a portion (let’s say 50%) of the VAT incurred under the reverse charge mechanism, then in box no. 10, you should declare 100,000 AED in the ‘Amount (AED)’ column and 2,500 AED in the ‘Recoverable VAT’ column. In case, you are not eligible to recover complete (100%) Input VAT on reverse charge supplies, you need to mention the full value of the supply i.e. 100,000 AED in ‘Amount (AED)’ column and not mention any value in ‘Recoverable VAT’.
The following are the types of supplies which need to be reported in box no. 10 of the VAT Form 201:
How Businesses in Oman Can Manage Budgets in TallyPrime Accounting Software?