How to Record Reverse Charge Tax in Qoyod

Clarification on the availability of reverse VAT in Qoyod, where Qoyod does not support reverse VAT automatically. It can be applied manually using a purchase invoice and a manual journal entry to document the tax.

Steps

1. Recording the Purchase Invoice

   • Enter the invoice at the base value without tax

   • Select 0% tax when entering

2. Calculate VAT Manually

   • The tax is calculated as follows:

     Invoice Value × Tax Rate

   • Example: 1,000 × 15% = 150

3. Create the Manual Journal Entry for Reverse VAT

   • From Accounting, then Manual Journal Entries, create a new manual entry

   • Use account 2105 on both sides of the entry

     • Debit: 2105 (Input VAT) for the tax amount

     • Credit: 2105 (Output VAT) for the same amount

   • Add a clear description to the entry such as: “Proof of reverse VAT for invoice [number/supplier name]”

4. Update the Tax Return

   • Ensure you enter the reverse VAT amount in the designated fields

     • Example: Field 9 in the VAT return in the Kingdom

   • Keep a copy of the invoice and entry for audit purposes