VAT periodic reporting

Requirement

In Saudi Arabia, the General Authority for Zakat and Tax (GAZT) has launched a new web portal for VAT returns, on which taxable persons file their VAT returns. This information is required by tax period:

  • Standard rated domestic sales
  • Sales to registered customers in other GCC states
  • Zero rated domestic sales
  • Zero rated exports
  • Exempt sales
  • Standard rated domestic purchases
  • Imports that are subject to VAT paid at customs
  • Imports that are subject to VAT accounted for through the reverse charge mechanism
  • Zero rated purchases
  • Exempt purchases
  • Corrections from the previous period, up to SAR5,000

M3 solution

The summarized information required for VAT return is created by M3. Generic functionality includes calculation, accounting, reporting, and reconciliation of VAT.

Configuration guidelines

Program ID Program name Description or comment
MNS100/G Company. Connect Division Set the tax method per division and specify the company tax and VAT registration number.
CRS750/F Settings – General Ledger

Specify this information:

VAT from date
VAT chk online
Select this check box.
Acceptable VAT deviation
Specify, for example, 0.01.
VAT date type
Specify 2-Invoice date.
VAT printout
Specify 3-VAT on inv & in AP.

CRS030

CRS031

VAT Code. Open

VAT Rate. Open
CRS395 Accounting Rule. Set Configure all VAT setups.
CRS630 Accounting Identity. Open
CRS610/J Customer. Open Set the Tax applicable field and specify the VAT code.
CRS624/F Supplier. Define Purchase & Financial Set the Tax applicable field and specify the VAT code.
MMS001/G Item. Open Set the VAT code purch and VAT code sales fields to the VAT codes for purchasing and selling.
MMS002/I Item. Connect Warehouse

To open (MMS002), select a record in (MMS001), then select Related > Item/Warehouse.

In (MMS002/I), set the VAT code purch and VAT code sales fields to the VAT codes for purchasing and selling.
OIS002/F Customer. Connect Addresses Optionally, in the VAT reg no field, specify the VAT registration number.
TXS005-TXS009 VAT Report Template. Open Define the content that is required for the VAT report.
TXS020 VAT Exception. Open
TXS030 Fiscal Representation. Open Complete the fields if relevant.
TXS100 VAT Run. Open