Paying Tax Liabilities for GCC States

To pay a tax liability:

1. Close the tax period before you do your tax reporting and tax payments. (Go to Setup > Accounting > Taxes > Manage Tax Periods.)

2. 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.

3. If VAT on Sales is greater than VAT on purchases, prepare and post an appropriate journal entry that:

   • Debits the VAT on Sales account for the amount shown on the VAT on Sales report

   • Credits the VAT on Purchases account for the amount shown on the VAT on Purchases report

   • Credits the VAT Liability account for the net amount

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:

1. Go to Transactions > Bank > Pay Tax Liability.

2. Select the appropriate bank account from which the payment is made.

3. Select the VAT liability tax account for the net amount.

4. 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.

5. Enter the date for this transaction.

6. Select a posting period for this cheque.

7. In the Amount field, enter the amount of the tax liability payment.

8. 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).

General Notices