https://localizations.manager.io/summary-view?FileID=VW5pdGVkIEFyYWIgRW1pcmF0ZXM
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@lubos please check the first draft for the localization.
There’s one thing that’s weird though. The tax code “Adjust VAT DXB 5%” was used in a credit note, but somehow appears in the purchases section of the Tax Summary report.
Tax Summary
Tax Summary Drilldown
Tax Code Edit
Can you select Customer on credit note? It appears credit note has no customer selected.
That’s right. All good now.
How does tourist VAT refund actually work? You issue invoice, charge VAT and then remove VAT from invoice because customer is not charged? Why not set up this tax code as reverse charged?
But both parts of the transaction are sales? Could I use reverse charged for that or just multi-component tax codes?
Let’s see. When I create the report for single sale which includes tax refund for tourist scheme. I come to total sales as 0.00. But I believe total sales is still 100.00. Can you clarify why you make total sales to be 0.00 on the report?
It’s a passthrough tax code so you can just enter the refund amount without having to duplicate the tax base.
I understand. That’s how you made it… but why you insist this tax code must reduce total sales (field 8) on VAT report?
I don’t insist on anything. 
It’s a reduction in taxable sales not necessarily a reduction in total sales.
Also, I tried to get a decent screenshot of the UAE Tax return but I couldn’t so I logged in and took a screenshot of the voluntary disclosure form – which is the next best thing:
Note that for item 2 near the end, there are two rows: (1) As reported (locked) and, (2) as current open for entry. It has a negative sign next to both the Amount and VAT Amount cells.
OK, the way I see it is that each emirate needs reverse charge tax code for the purpose of tourist VAT refund. There is no need for javascript as every field can be calculated with simple additions of reporting categories.
So reverse charge VAT tax code for one of the emirates would look like this:
And the report transformation:
And in sales totals we do not show tourist refund reporting categories at all as they do not have any impact on the total.
When issuing invoice, we do not need 2 line items to handle this. Just one line item with correct tax code:
That will also work, but regarding your earlier point.
You are right. It is going to reduce total sales since the Tax return contains all categories of sale: Taxable and Exempt. (Sorry for being so slow to understand)
I have tested the voluntary disclosure form and it turns out that this item indeed reduces the total:
Totals Before Refund
Refund
Totals After Refund
So I think the tax base for a tax refunded transaction should be as follows:
- Taxable sales recorded at item’s appropriate tax code (+100)
- Tax refund effect on taxable sales (-100)
- Restatement of taxable sales @ VAT 0% (+100)
Net effect on sales would be (+100). That should ensure that both the tax and total sales amount are reported correctly.
OK - we are on the same page. I think all that is left is to create VAT tourist refund tax codes for remaining emirates and the report can be published. We do not need javascript on report transformation after all. Do you agree?
Almost. I might be sure of the accounting treatment, but I’m not entirely sure how to setup the tax codes.
Could you please explain a bit more.
I got it now.
The tax amount will be reverse charged but the taxable amount can be used three times:
- Once in VAT5%
- Once again in Tourist refund – reverse signed
- Once more in VAT0%
Right?
I’ve created those tax codes for each emirate now.
Thanks a lot. I will check it out tomorrow and finish the job then but now I have to go get some sleep. Good night.
I have gone through it and I see you have made all the setup work. I just added the Emirate Tourist refund categories to item 4 and made tourist refund codes inactive.
One little problem though. This 
first column total wouldn’t match the total in the FTA form:
Column 1 total should be 183,971.00. The 167,471 is the total before reversing the signs of reverse charged purchases
Should they be in item 4 though? We are already showing these transactions across item 1, then item 2 and they should be in item 4 too? Because technically, these are not zero rated supplies. Can you clarify?
So these reverse charged purchases need to be shown in sales totals too? Seems like the same issue we have in Bahrain localization. I will need to figure out another way to handle totals.
Because the sales figures wouldn’t add up otherwise.
I think of it this way, the government is passing on the responsibility of making adjustments for taxable sales that are exported by tourists. But they still need to control the retailer and that’s why they need the refund amount to be reported separately.
The sale is reported as taxable because the supplied items are taxable.
The sales is reported again as zero rated because technically they are exports.
To adjust for double counting, there’s a separate negative adjustment reported separately.
Exactly.
Though I am not really concerned about it much since the tax amount is calculated correctly and other than that having the totals match the FTA form is confirmation of correct data entry, it’s purely cosmetic imo. So I don’t mind having it done with a script.
I’m more concerned about the number of tax codes exposed to irrelevant tabs.
In the latest version (21.11.63) I’ve added new reporting category type to handle reverse amounts on tax code level.
It’s not something I wanted to do but it will achieve what we need without custom script.
When you look at report transformation, you will see correct total now.
And drilling-down works propertly too:
Please double-check everything works as it should and then you can mark the report as published.
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