I have customer who is issuing sales invoices in 0% VAT. We have many Invoices which is rejected by their customers due to Invoice is not compliance with our tax authority. Only because 0% VAT Rate not appearing below sub-total.
The Invoice Should show below
Please find below VAT Invoice
please let me know if it is ok or I will try to bring another one. but in general if you follow the mail template published by ZATC regard total it will be ok
below is most common used template Invoice Template.pdf (539.6 KB)
Here is a sample invoice which benefits the extra table as mentioned above. In UAE, for invoices stated in foreign currency, it is required to display in the invoice the base currency of the taxable amount and taxes.
I, myself have been trying to add this in custom theme but to no success until now.
@ibadlon country-specific legal requirements are not meant to be handled by custom themes. These should be built-in features.
I think what is really being requested here is ability to show totals per tax code. So it’s not about showing there is zero amount tax on VAT 0%. It’s about showing how much total is subject to VAT 0%. Am I correct?
thank you for recognising that these should be a built-in feature.
Yes, we need to show the total amount subject to VAT0%, but it is also about showing how much tax was charged. Although it is 0%, it is still a tax rate, and still needs to be shown in the invoice, which i believe was the initial request of the topic owner.
Also, I’d like to highlight that it is required in UAE to mention what prevailing rate applicable at the time of sale if the invoice is expressed in foreign currency. Adding such feature would greatly be appreciated.
I suggest an enhancement like QuickBooks
accounting software that can handle taxes both by item and by customer. Here’s an explanation of how it works:
Handling Taxes by Item:
Assigning Tax Codes to Items: QuickBooks allows you to assign specific tax codes to each item in your inventory. These tax codes represent the tax rate associated with the item.
When Creating Invoices or Sales Receipts: When you create an invoice or sales receipt, QuickBooks will automatically calculate the tax amount for each item based on the assigned tax code. It sums up the tax amounts for all the taxable items on the document.
Customization: QuickBooks also offers flexibility in handling taxes by item. You can customize tax rates for each item and apply different tax codes to various items based on your specific tax requirements.
Handling Taxes by Customer:
Customer Tax Exemption: In QuickBooks, you can mark specific customers as tax-exempt if they are not subject to certain taxes.
Assigning Tax Codes to Customers: QuickBooks allows you to assign specific tax codes to individual customers or customer groups. These codes represent the tax rules that apply to each customer or group.
Tax Settings on Invoices: When you create an invoice or sales receipt for a customer, QuickBooks considers the tax settings for that customer. It calculates the appropriate taxes based on the customer’s tax status, location, and assigned tax codes.
Tax Reports: QuickBooks provides tax reports that summarize the taxes collected by customer. This can be useful for tax compliance and reporting purposes.
I express my deep gratitude to the team at Manager for their exceptional efforts and innovative solutions. Thank you for making my work easier and more efficient."
First of all, each application has its own ways of doing things and eventually lead to desired results. I noticed that a lot of people recently are moving from Quickbooks to Manager and then expect Manager to work similar to Quikbooks. The Manager way of doing things will require those migrating to learn how things are done. Once familiar with Manager you do not want to go back to what you were used to.
Manager does this also but by selecting the tax codes in Invoices, Payments and Receipts per line item. This has an advantage over Quickbooks as you can add non-inventory items and all calculations done properly.
You can setup tax exempt codes in Settings and apply those to the items on the invoices and receipts for selected customer. You could use a customs field to identify such tax exempt customers so when creating invoices and receipts you know what to apply.