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Getting Started with Ghana VAT


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Version: Getting Started with Ghana VAT/Release 3.0/February 2011


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Contents

i

Contents

IntroductionGeneral Terminologies of VAT ................................................................................................................1

Features of VAT in Tally.ERP 9 ................ .............. ............... .............. ................ ............... .............. ...... 3

Lesson 1: Enabling Ghana VAT in Tally.ERP 9

1.1 Creating a Company ............... ............... .............. ................ ............... .............. ................ ............. ... 4

1.2 Enabling Value Added Tax .............. ............... .............. ................ .............. ............... ................ ....... 6

Lesson 2: Processing Transactions

2.1 Purchase of Taxable Goods ............... ............... .............. ............... ................ .............. ............... ...... 9

2.2 Sale of Taxable Goods ............. .............. ................ ............... ............... ............... ................ ............ 232.3 Sale of Taxable Goods with Additional Ledger ..... ................ ............... ................ ............... .......... 34

2.4 Exempted Purchases ............... ............... .............. ................ .............. ............... ................ .............. 38

2.5 Exempt Sales .............. ................ .............. ............... ............... ............... ............... ............... ............ 43

2.6 Zero Rated Sales .............. .............. ................ .............. ............... ................ .............. ................ ...... 46

2.7 Import .............. ............... ............... ............... .............. ............... ............... ............... .............. .......... 51

2.8 Purchase Returns ............. ............... .............. ................ .............. ............... ............... ............... ........ 60

2.9 Sales Returns ............. ............... ............... ............... .............. ............... .............. ................ .............. 62

2.10 Adjustment of Input against Output Tax & Payment of Tax ........................ .............. ................ .. 64

2.10.1 Journal Voucher Adjusting Input VAT against Output VAT ..............................................................64

2.10.2 Payment of VAT .....................................................................................................................................67

2.10.3 Payment Voucher Adjusting Input against Output Tax & Paying VAT ..............................................71

Lesson 3: VAT Reports

3.1 VAT & NHIL Invoice ................ .............. ............... ............... ............... ............... ............... ............ 75

3.2 VAT Computation Report .............. ............... ............... ................ .............. ............... ................ ..... 78

3.3 VAT Classification Vouchers ............. ................ ............... ............... .............. ................ ................ 83

3.4 VAT & NHIL Return .............. ............... .............. ............... ............... ............... .............. ................ 85

3.5 VAT Commodity Report .............. ............... ................ ............... .............. ................ ............... ....... 88

3.6 VAT Registers .............. ............... ............... ............... .............. ................ .............. ............... .......... 91

3.6.1 VAT Purchase Register ............................................................................................................................91

3.6.2 VAT Sales Register ..................................................................................................................................93


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1

Introduction

The Value Added Tax (VAT) of Ghana is a tax on general consumption expenditure levied as perthe Value Added Tax Act, 1998 (Act 546) and the Value Added Tax Regulations 1998, (L.I 1646).VAT is levied at every stage of production and distribution of goods as a percentage charge based

on assessable value that is added by the value additions done by each dealer. It is also imposedon goods imported into Ghana.

The collection of VAT commenced in Ghana from December 30, 1998 by replacing the Sales andService tax collected by Customs Excise and Preventive Service (CEPS) and Internal RevenueService (IRS) respectively. The VAT collected is paid into the Consolidated Fund as per the provi-sions of the VAT Act.

Another form of general tax on consumption expenditure is National Health Insurance Levy(NHIL). It is imposed under the National Health Insurance Act, 2003 (Act 650). The NHIL isimposed on supply of goods, services and imports. It acts as a source of money for NationalHealth Insurance Fund established under the National Health Insurance Act.

Under the VAT Act and Regulations all Registered persons have to file The VAT & NHIL Return. Itis a monthly return showing details of VAT/NHIL transactions for the calendar month. The excessof output tax remaining after off-setting the input tax is payable to the Department while filing thereturn.

General Terminologies of VAT

Input Tax

It is the VAT/NHIL paid:

On taxable purchases made for resale

On purchase of office equipment for use in the business

As Telephone bills of the business enterprise

As fees for services of accountants and solicitors.

Output Tax

It is the tax charged on taxable sales.


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Introduction

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Tax Rates

The two rates of taxes levied are standard rate and zero rate. The tax rates are bifurcated as:

Standard Rate: VAT - 12.5% and NHIL - 2.5% Zero Rate: VAT and NHIL at 0%.

The VAT and NHIL is chargeable on import of goods and services. The export of taxable goodsand services are considered as zero rated supplies.

Taxable Turnover

It is the total value of taxable supplies made by a business entity.

Exempt Supplies

The levy of VAT and NHIL is exempt on: Foodstuffs like rice, millet, cassava, yam, guinea corn, plantain, vegetables and meat pro-

duced in Ghana and sold in their raw state.

Agricultural and fishing inputs.

Petrol, diesel and kerosene.

Essential drugs approved by the Ministry of Health.

Transport fares land, sea and air.

Educational services approved by the Ministry of Education.

Electricity consumed for Domestic purposes.

Water excluding distilled and bottled water. Printed matter like books, newspapers, atlas, charts, maps and music.

Zero Rated Supplies

Zero rated supplies are taxable supplies with a tax rate of zero percent. Zero tax rate is applicableon:

Exports.

Goods shipped as stores on ships or aircrafts leaving the territories of Ghana.

Locally produced textbooks and exercise books.

Locally manufactured agricultural machinery or implements.

TIN

Tax Identification Number (TIN) is the Registration Number given by the department to thedealer at the time of Registration. This needs to be quoted at all required places where the regis-tration details are to be provided.


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Tax Invoice

This is the approved VAT/NHIL invoice issued for taxable supplies to a Registered person. Thisinvoice needs to be produced for the claim of input tax credit by the purchasing dealer.

Taxable Person

This term is used to identify a dealer who is registered either under Voluntary Registration orCompulsory Registration under the VAT Act. Taxable persons include Sole Proprietor, Partner-ship, limited liability company, government institutions and non-profit organizations.

Features of VAT in Tally.ERP 9

The salient features provided for VAT in Tally.ERP 9 are as follows:

Quick, easy to setup and use.

Pre-defined VAT/Tax Classifications for Purchase and Sale of goods

Facility to create separate VAT ledgers with VAT/Tax Classifications for input as well as out-put VAT

Facility to generate and print VAT & NHIL invoice and Return

Complete tracking of each transaction till generation of returns

Better VAT-returns management

Facility to generate VAT Computation report with details pertaining to

The value of transactions recorded using the classifications available for VAT

VAT Payable or refundable

Provision to generate VAT Classification Vouchers report for each of the VAT/Tax classifi-cations

Facility to drill-down the various VAT classifications from VAT Computation report till thelast level of voucher entry

Greater tax compliance


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Lesson 1: Enabling Ghana VAT in Tally.ERP 9

1.1 Creating a Company

It takes a one-time configuration in Tally.ERP 9, to enable VAT. Let us take an example of a Regis-

tered person - Premier Enterprise to illustrate the same.

Example:

Premier Enterprise is a company engaged in trading of goods. On 1-4-2010, Premier Enterprisesregisters under the Ghana VAT Act as dealer of goods.

Step 1:

Let us create a Company and enable VAT.

Go to Gateway of Tally > Alt + F3: Cmp Info > Create Company

In the Company Creation screen The Directory path appear by default which can be changed as per requirement

Enter the Name of the company as Premier Enterprise

In the Mailing & Contact Details section specify the details as given below:

The Name entered under Directory gets captured as the Mailing Name.

Enter the Address details of the Premier Enterprise

Lesson Objectives

On completion of this lesson, you will be able to

Create Company in Tally.ERP 9

Enable Value Added Tax


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Enabling Ghana VAT in Tally.ERP 9

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In the Statutory compliance forfield select the Country as Ghana from the List of Coun-tries

Figure 1.1 Company Creation - Selection of Country

Specify the Telephone and Mobile number

Enter the E-mail address that will be used to e-mail documents, reports and data from

Tally.ERP 9

Set Enable Auto Backup toYes for enabling the automatic backup of Tally.ERP 9 data(per company). Else, set this to No. The data backup automated using this option getsstored in the data folder of the respective company.

Enter the TallyVault Password if required to secure the data. This basically results in thecreation of an encrypted company whose information is not accessible to users other thanthe password holder.

UnderCompany Details,

The Currency symbol will be set to GH on selecting the Statutory Compliance forGhana.

The Maintain field select Accounts with Inventory from the Type of Company as it atrading company.

In the Financial Year from and Books beginning from fields, the first day of the cur-rent financial year (of 12 months) for e.g., 1-4-2010 will be displayed by default, whichcan be changed as per requirement.

Set Use Security Control toYes for a password-protected system, else set it to No. Set-ting it toYes will control access to Tally.ERP 9 data.

In Base Currency Information section set Show Amount in Millions toYes and acceptthe other details.


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The completed Company Creation screen displays as shown:

Figure 1.2 Company Creation screen

PressY orEnterto accept and save.

1.2 Enabling Value Added TaxTo enable VAT,

Go to F11: Features > F3: Statutory & Taxation Features

Figure 1.3 F11: Features

Press Enteron the Statutory & Taxation option

In the Statutory & Taxation section:

Set Enable VAT toYes


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Select the Type of Business as Regular

Enter the VAT Applicable from date as 1-4-2010

Enter the VAT registration number in VAT TIN fieldEnter the name of the Authorised Signatory

The completed Company Operations Alteration screen displays as shown:

Figure 1.4 F3: Statutory & Taxation Features

PressY orEnterto accept and save the Company Operations Alteration screen.


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Lesson 2: Processing Transactions

In this section, the procedure of recording transactions using Tally.ERP 9 as per the Ghana VAT isexplained.

Consider the example of Premier Enterprise a registered person under Value Added Tax to recordVAT transactions such as

Purchase of Taxable Goods

Imports

Taxable Sales

Exempt Sales

Sale of Zero Rated Goods

Purchase Returns

Sales Returns

Payment of VAT and NHIL

On completing the transactions, the VAT & NHIL invoice and the Return can be generated as perstatutory requirements.

Lesson Objectives

On completion of this lesson, you will be able to

Record Purchase and Sales transactions

Account for Purchase and Sales Returns

Record Payment of VAT and NHIL


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Processing Transactions

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2.1 Purchase of Taxable Goods

Example 1:

On 3-1-2011, Premier Enterprise purchased the following items taxable at 12.5% VAT Rate fromFabric House vide invoice number FH/001:

Step 1:

Let us create the required Masters to record the above transaction.

Creating Masters

i. Purchase Ledger

Go to Gateway of Tally > Accounts Info > Ledgers > Create

Click on F12: Configure button and set the field Use ADDRESSES for Ledger Accounts to NOas the address details are not required for purchase ledgers.

1. Enter the Name as Purchases @ 12.5%

2. Select Purchase Accounts as the account group in the Underfield

3. Set Inventory values are affected toYes

Item Description Quantity (in Nos) Rate Amount Commodity/Item Code

Kente Print Fabric 500 80 40,000 T-1209

Kente Dashiki 800 25 20,000 C-U920


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4. Set the option Used In VAT Returns toYes to display the VAT/Tax Class sub-screen.

Figure 2.1 Purchase Ledger Used In VAT Returns


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5. Select Purchases @ 12.5% as the VAT/Tax Class from the list of VAT/Tax Class as shown:

Figure 2.2 Purchase Ledger Used In VAT Returns

6. Press Enter to return to the Purchases @ 12.5% ledger creation screen and set the optionUse for Assessable Value Calculation to No


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The completed Purchases @ 12.5% Ledger Creation screen displays as shown:

Figure 2.3 Purchase Ledger Completed

7. PressY orEnterto accept and save.

ii. Input VAT Ledger

To create an Input VAT ledger,

Go to Gateway of Tally > Accounts Info. > Ledgers > Create1. Enter the Name as Input VAT @ 12.5%

2. Select Duties & Taxes as the group name in the Underfield

3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax

In the VAT/Tax class screen, theActivated From column will display the date

of activation of particular classification in the current financial year. The Deac-

tivated From column will show the date of deactivation irrespective of the

financial year.


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4. Set the VAT Sub Type as Input VAT

Figure 2.4 Input VAT - Input VAT Sub Type

The field - VAT Sub Type is introduced in ledger masters grouped under

Duties & Taxes with Type of Duty/Taxas VAT. Based on selection of VAT

Sub Type as Input VATorOutput VAT, the VAT/Tax classifications are listed

in VAT/Tax Class field. Also the VAT payable amount gets auto calculated in

Payment voucher on using Stat Payment based on the VAT Sub Type

selected in ledger master.


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5. Select Input VAT @ 12.5% in the VAT/Tax Class field from the VAT/Tax Class list displayed

Figure 2.5 Input VAT VAT/Tax Class Selection

6. The option Inventory values are affected is set to No by default as it is a VAT ledger7. The Percentage of Calculation and Method of Calculation will be displayed based on the

VAT/Tax Class selected


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8. Enter the Opening Balance if any carried forward from the previous period

Figure 2.6 Input VAT - Ledger Completion


iii. Input NHIL Ledger

To create an Input NHIL ledger,

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

1. Enter the Name as Input NHIL @ 2.5%



4. Set the VAT Sub Type as Input VAT


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5. Select Input NHIL @ 2.5% in the VAT/Tax Class field from the VAT/Tax Class list displayed

Figure 2.7 Input NHIL VAT/Tax Class Selection

6. The option Inventory values are affected is set to No by default.


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7. The Percentage of Calculation and Method of Calculation is displayed based on the VAT/Tax Class selected

Figure 2.8 Input NHIL Ledger


iv. Sundry Creditor Ledger

To create a Sundry Creditor (Supplier) ledger,

Go to Gateway of Tally > Accounts Info. > Ledger > Create

Click on F12: Configure button and set the field Use ADDRESSES for Ledger Accounts toYes.

In the Ledger creation screen,

1. Enter the Name as Fabric House

2. Select Sundry Creditors in the Underfield

3. Set Maintain balances bill-by-bill toYes and enter the Default Credit Period if any

4. In the Mailing Details section

The Name will be displayed as Fabric House

Enter the Address details


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5. In the Tax Information section enter the VAT TIN Number

Figure 2.9 Sundry Creditor Ledger

6. PressY orEnterto accept the party ledger screen.

v. VAT Commodity

To create a VAT Commodity

Go to Gateway of Tally > Inventory Info. > VAT Commodity > Create

1. Enter the Name ofVAT Commodity as Kente Print Fabric

2. In the Used forfield, select VAT

3. In the VAT section, enter the Commodity Code which can also be the item code


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4. Enter the details about the VAT Commodity in Notes if required

Figure 2.10 VAT Commodity Creation screen

5. Accept the VAT Commodity Creation screen.

Similarly, create the VAT Commodity Kente Dashiki with Commodity Code C - U920. Thecompleted Commodity Creation screen displays as shown:

Figure 2.11 VAT Commodity - Kente Dashiki

vi. Stock Items

To create a stock item,

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

1. Enter the Name as Kente Print Fabric

2. Select the group as Primary in the Underfield

3. Select the unit of measurement as Nos in the Units field. (The Unit of Measure can be cre-

ated by using the key combination Alt+C in the Units field)4. In the Commodity field, select the VAT Commodity as Kente Print Fabric.


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The VAT Commodity Code will also be displayed along with the Commodity Name in the List ofVAT Commodities as shown:

Figure 2.12 Stock Item Creation Selection of VAT Commodity

5. Enter the Rate of VAT as 12.5%.

6. Set NHIL Exempted to No as it is taxable at 2.5%.

The completed stock item creation screen displays as shown:

Figure 2.13 Stock Item Creation screen


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Similarly create the stock item Kente Dashiki by selecting the VAT Commodity - Kente Dashikiand setting the field NHIL Exempted to No as shown:

Figure 2.14 Stock Item - Kente Dashiki

Step 2:

Let us now enter the purchase transaction in Tally.ERP 9

To create Purchase Voucher,

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

In F12: Purchase Invoice Configuration, set the options as given below:

Use Common Ledger A/c for Item Allocation toYes as single classification is selectedfor all stock items.

Allow selection of VAT/Tax Class during entry to No as the VAT/Tax class is defined in

the ledger master and need not be selected again while invoicing.

1. Select As Invoice mode (use key combination Ctrl+V if the screen is displayed in vouchermode. The invoice mode will be displayed)

2. Enter the reference number in Reffield

3. Select Fabric House in the Partys A/c Name field from the List of Ledger Accounts

4. In the Party Details screen, enter/modify the required details

5. Select Purchases @ 12.5% ledger from the List of Ledger Accounts

The VAT Commodity and Stock Item need not be the same. Multiple Stock

items can be tagged to a single VAT Commodity.


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6. On selecting the Purchase @ 12.5% ledger, the VAT/Tax Class - Purchases @ 12.5%appears as it is defined in the ledger master

7. Select the Name of Item as Kente Print Fabric from the List of Items

8. Enter the Quantity as 500 and Rate as 80. The amount is automatically displayed in theAmount field

9. Select the next stock item Kente Dashiki from the List of Items

10.Enter the Quantity as 800 and Rate as 25. The amount is automatically displayed in theAmount field

11. Select the ledgerInput VAT @ 12.5%. The value will be automatically calculated.

12. Select the ledger Input NHIL @ 2.5% and the value will be calculated on the assessablevalue and displayed.

13. The field Show Statutory Details will be set to No which can be enabled to view the breakupof assessable value and tax amount.

14. Accept the default Bill allocations in the Bill-wise Details screen

15. Enter the Narration if required

Figure 2.15 Purchase Invoice - Purchase of Taxable Goods


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16.PressY orEnterto accept the Purchase Invoice.

2.2 Sale of Taxable Goods

Example 2:

On 6-1-2011, Premier Enterprise sold 400 nos of Kente Print Fabric at GH160 to Apparel Enter-prise vide invoice number PE/001. The stock item attracts VAT @ 12.5% and NHIL @ 2.5%.

Step 1:


Creating Masters

i. Sales Ledger

To create a sales Ledger


1. Enter the Name as Sales @ 12.5%

2. Select Sales Accounts as the account group in the Underfield


In a transaction where Cash Ledger is selected in the Partys A/c Name

field, the required party ledger can be selected in the Supplementary Detailsscreen by using the Alt+M: Party Listbutton. On selecting the party ledger,

theAddress and the TIN/Sales Tax Numberwill be captured from the ledger

master and displayed in the printed invoice format.


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4. Set the option Used In VAT Returns toYes to display the VAT/Tax Class sub-screen

Figure 2.16 Sales Ledger Used In VAT Returns


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5. Select Sales @ 12.5% as the VAT/Tax Class from the list of VAT/Tax Class

Figure 2.17 Sales Ledger VAT/Tax Class Selection

6. Press Enterto return to the Sales @ 12.5% ledger creation screen.7. Set the option Use for Assessable Value Calculation to No

8. Press Ctrl+A to accept and save the ledger.

ii. Output VAT Ledger

To create an Output VAT ledger,


1. Enter the Name as Output VAT @ 12.5%




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4. Select the VAT Sub Type as Output VAT

Figure 2.18 Output VAT - Output VAT Sub Type


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5. Select Output VAT @ 12.5% in the VAT/Tax Class field from the VAT/Tax Class list displayed

Figure 2.19 Output VAT VAT/Tax Class Selection

6. The option Inventory values are affected is set to No by default


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7. The Percentage of Calculation and Method of Calculation will be displayed based on theVAT/Tax Class selected

Figure 2.20 Output VAT @ 12.5% Ledger

8. PressY orEnterto accept and save the output VAT Ledger.

iii. Output NHIL Ledger

To create an Output NHIL ledger,


1. Enter the Name as Output NHIL @ 2.5%



4. Select the VAT Sub Type as Output VAT


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5. Select Output NHIL @ 2.5% in the VAT/Tax Class field from the VAT/Tax Class list displayed

Figure 2.21 Output NHIL VAT/Tax Class Selection



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Figure 2.22 Output NHIL Ledger

8. Accept to save the output NHIL Ledger.

iv. Customer Ledger

To create a Sundry Debtor (Customer) ledger,


Ensure that in F12: Master Configuration the option Use ADDRESSES for Ledger Accounts isset toYes.


1. Enter the Name as Apparels Enterprise

2. Select Sundry Debtors in the Underfield3. Set Maintain balances bill-by-bill toYes and enter the Default Credit Period if any


The Name will be displayed as Apparel Enterprise



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Figure 2.23 Sundry Debtor Ledger

6. Accept the Sundry Debtor ledger.

v. VAT & NHIL Invoice or Tax Invoice

To create a VAT & NHIL Invoice,

Go to Gateway of Tally > Account Info. > Vouher Types > Create

1. Enter the Name as VAT & NHIL Invoice.

2. Select Type of Voucheras Sales and enter the Abbreviation for it as per requirement.

3. Enter the Default Print Title as VAT & NHIL Invoice.

4. Set Is Tax Invoice toYes.

5. UnderDeclaration enter the terms of payment


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6. Retain the other default fields.

Figure 2.24 VAT & NHIL Invoice

7. PressY orEnterto accept the VAT & NHIL Invoice Voucher Type.

Step 2:Let us enter the transaction in Tally.ERP 9.

Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Select VAT & NHIL Invoice asthe Voucher Type

1. Enter the reference in the Ref. field

2. Select Apparel Enterprise in the Partys A/c Name field from the List of Ledger Accounts


4. Select Sales @ 12.5% ledger from the List of Ledger Accounts

5. On selecting the Sales @ 12.5% ledger, the VAT/Tax Class appears as Sales @ 12.5% auto-matically as it is defined in the ledger master

6. Select the Name of Item as Kente Print Fabric from the List of Items7. Enter the Quantity as 400 and Rate as 160. The amount is automatically displayed in the

Amount field

8. Select the ledger - Output VAT @ 12.5% and the value will be automatically calculated

9. Select the Output NHIL @ 2.5% ledger. The output NHIL will be calculated on the assessablevalue.

10. The field Show Statutory Details will be set to No which can be enabled to view the breakupof assessable value and tax amount


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Figure 2.25 Taxable Sales Invoice

13. PressY orEnterto accept the sales invoice.


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2.3 Sale of Taxable Goods with Additional Ledger

Example 3:

On 12-1-2011, Premier Enterprise sold the following items to Apparel Enterprise vide invoicenumber PE/002:

The stock items attract 12.5% VAT and 2.5% NHIL. An amount of GH 7,500 was charged aspacking charges which was included in the invoice.

Step 1:Let us create the required Masters to record the above transaction.

Creating Masters

i. Packing Charges

To create a ledger for packing charges,


1. Enter the Name as Packing Charges

2. Select Indirect Income orIndirect Expenses as the group name in the Underfield

3. The option Inventory values are affected is set to No by default4. Set the option Use for Assessable Value Calculation toYes


Kente Print Fabric 90 160 14,400 T-1209

Kente Dashiki 790 70 55,300 C-U920


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5. In the Apportion forfield select VAT andset the Method of Apportion to Based on Value

Figure 2.26 Packing Charges Ledger

6. Press Ctrl+A to accept and save.

Step 2:

Let us enter the transaction in Tally.ERP 9.

Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Select VAT & NHIL Invoice asthe Voucher Type

1. Enter the reference in the Ref. field, if required.

2. Select Apparel Enterprise in the Partys A/c Name field from the List of Ledger Accounts.


4. Select Sales @ 12.5% ledger from the List of Ledger Accounts

In the ledgers grouped under Direct/Indirect Expenses, Direct/Indirect

Incomes, Purchase Accounts and Sales Accounts, the fields Use for

Assessable Value Calculation will be displayed. On enabling this field, the

optionsApportion forandMethod of Apportion appears. On selecting the

Method of Apportion as VAT, the value of these ledgers apportioned

towards assessable value will be considered for VAT calculation.


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5. On selecting the Sales @ 12.5% ledger, the VAT/Tax Class appears as Sales @ 12.5% auto-matically as it is defined in the ledger master

6. Select the Name of Item as Kente Print Fabric from the List of Items


8. Select the stock item - Kente Dashiki from the List of Items.


10. Select Packing Charges ledger and enter the amount as 7,500

11. Select the ledger - Output VAT @ 12.5% and the value will be automatically calculated

12. Select the Output NHIL @ 2.5% ledger. The output NHIL will be calculated on the assessablevalue.

13. Set the field Show Statutory Details asYes to view the breakup of assessable value inclu-sive of additional incomes/expenses, the output VAT and output NHIL for each stock item

Figure 2.27 Sales Invoice Show Statutory Details Field


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14. In the Statutory Details click on F1: Detailed button (Alt+F1) and the screen displays asshown:

Figure 2.28 Sales Invoice Statutory Details screen

15. Accept the Statutory Details screen



18. Accept the sales invoice.


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2.4 Exempted Purchases

Example 4:

On 15-1-2011, Premier Enterprise purchased Audio CDs from Melody Music Paradise, videinvoice number MP/002. The stock item details are given below:

Step 1:


Creating Mastersi. Exempt Purchase Ledger

To create a Purchases Exempt Ledger


1. Enter the Name as Purchases - Exempt





Audio CD 180 100 18,000 T-1209


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5. Select Purchases - Exempt as the VAT/Tax Class from the list of VAT/Tax Class

Figure 2.29 Purchase Exempt Ledger VAT/Tax Class Selection

6. Press Enterto return to the Purchases - Exempt ledger creation screen7. Set the option Use for Assessable Value Calculation to No


ii. Supplier Ledger





1. Enter the Name as Melody Music Paradise2. Select Sundry Creditors in the Underfield



The Name will be displayed as Melody Music Paradise



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6. Accept the Sundry Creditor ledger.

iii. VAT Commodity



1. Enter the Name ofVAT Commodity as Audio CD




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iv. Stock Items



1. Enter the Name as Audio CD


3. Select the unit of measurement as Nos in the Units field. (The Unit of Measure can be cre-ated by using the key combination Alt+C in the Units field)

4. In the Commodity field, select the VAT Commodity as Audio CD.

5. Enter the Rate of VAT as 0.

6. Set NHIL Exempted toYes as it is exempt.

The completed stock item creation screen displays as shown:

Figure 2.32 Stock Item Creation screen

PressY orEnterto accept and save.


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Step 2:



1. Enter the reference number in the Reffield

2. Select the Partys A/c Name as Melody Music Paradise from the List of Ledger Accounts

3. Select Purchases Exempt ledger from the List of Ledger Accounts

4. On selecting the Purchases Exempt Ledger, the VAT/Tax Class appears as Purchases Exempt automatically

5. Select the Name of Item as Audio CD from the List of Items


7. The field Show Statutory Details will be set to No

8. Accept the default bill allocations in the Bill-wise Details screen9. Enter the Narration if required

The completed Purchase Invoice displays as shown:

Figure 2.33 Purchase Exempt Invoice



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2.5 Exempt Sales

Example 5:

On 18-1-2011, Premier Enterprise sold 150 nos of Audio CDs at GH 140 each to SupremeMusic World, vide invoice number PEN/001. The Audio CDs are exempt from VAT and NHIL.

Step 1:


Creating Masters

i. Exempt Sales Ledger

To create a Sales Exempt Ledger


1. Enter the Name as Sales - Exempt




5. Select Sales - Exempt as the VAT/Tax Class from the list of VAT/Tax Class

Figure 2.34 Sales Ledger VAT/Tax Class Selection


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6. Press Enterto return to the Sales - Exempt ledger creation screen

7. Set the option Use for Assessable Value Calculation to No


ii. Customer Ledger





1. Enter the Name as Supreme Music World

2. Select Sundry Debtors in the Underfield

3. Set Maintain balances bill-by-bill toYes and enter the Default Credit Period if any4. In the Mailing Details section

The Name will be displayed as Supreme Music World



Figure 2.35 Sundry Debtor Ledger



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Step 2:


Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Select Sales as the VoucherType


2. Select the Partys A/c Name as Supreme Music World from the List of Ledger Accounts.

3. Select Sales Exempt ledger from the List of Ledger Accounts.

4. On selecting the Sales Exempt Ledger, the VAT/Tax Class appears as Sales Exemptautomatically

5. Select the Name of Item as Audio CD from the List of Items



8. Accept the default bill allocations in the Bill-wise Details screen


The completed Sales Voucherscreen displays as shown:

Figure 2.36 Sales Exempt Invoice



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2.6 Zero Rated Sales

Example 6:

On 21-1-2011, Premier Enterprise sold 200 nos of Exercise Books (out of the opening stock of250 nos) to Excel Book House vide invoice number PEN/002. The stock item details are givenbelow:

Step 1:


Creating Masters

i. Zero Rated Sales Ledger

To create a Sales Zero Rated Ledger


1. Enter the Name as Sales - Zero Rated





Exercise Books 200 35 7,000 4820.2000


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5. Select Sales - Zero Rated as the VAT/Tax Class from the list of VAT/Tax Class

Figure 2.37 Sales Zero Rated Ledger VAT/Tax Class Selection

6. Press Enterto return to the Sales - Zero Rated ledger creation screen7. Set Use for Assessable Value Calculation to No.


ii. Customer Ledger





1. Enter the Name as Excel Book House2. Select Sundry Debtors in the Underfield



The Name will be displayed as Excel Book House



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Figure 2.38 Sundry Debtor Ledger Excel Book House


iii. VAT Commodity



1. Enter the Name ofVAT Commodity as Exercise Books




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iv. Stock ItemsTo create a stock item,


1. Enter the Name as Exercise Books



4. In the Commodity field, select the VAT Commodity as Exercise Books

5. Enter the Rate of VAT as 0

6. Set NHIL Exempted toYes as it is zero rated

7. Enter the opening balance as 250 nos and rate as 22The completed stock item creation screen displays as shown:

Figure 2.40 Stock Item Excercise Books



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Step 2:


Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Select Sales as the VoucherType


2. Select the Partys A/c Name as Excel Books House from the List of Ledger Accounts.

3. Select Sales Zero Rated ledger from the List of Ledger Accounts.

4. On selecting the Sales Zero Rated Ledger, the VAT/Tax Class appears as Sales ZeroRated automatically

5. Select the Name of Item as Exercise Books from the List of Items



8. Accept the default bill allocations in the Bill-wise Details screen


10.The completed Sales Voucherscreen is displayed as shown:

Figure 2.41 Zero Rated Sales Invoice

11. PressY orEnterto accept.


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2.7 Import

Example 7:

On 25-1-2010, Premier Enterprise imported 350 nos of Boubou for CFA Franc XOF 30,000 eachfrom Opulent Apparels, Togolese Republic vide invoice number OA/003. The conversion factor

per GH is GH1 = XOF 302.67. The stock item attracts VAT and NHIL.

Step 1:

Let us create the necessary masters to account for Imports.

Creating Ledgers

i. Imports Ledger

To create a Purchase Ledger for Import of goods,


1. Enter the Name as Purchases - Imports @ 12.5%



4. Set the option Used In VAT Returns toYes to display the VAT/Tax Class sub-screen.

Item Description Quantity (in Pcs) Rate (in XOF) Commodity/Item Code

Boubou 350 30,000 00230625


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5. Select Purchases - Imports @ 12.5% as the VAT/Tax Class from the list of VAT/Tax Class asshown:

Figure 2.42 Purchase Imports Used In VAT Returns

6. Press Enterto return to the Purchases - Imports @ 12.5% ledger creation screen.

7. Set Use for Assessable Value Calculation to No.

8. Press Ctrl+A to accept and save the ledger.

ii. Input VAT on Imports

To create an Input VAT on imports ledger,


1. Enter the Name as Input VAT @ 12.5% on Imports


3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax4. Set the VAT Sub Type as Input VAT


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5. Select Input VAT @ 12.5% on Imports in the VAT/Tax Class field from the VAT/Tax Class listdisplayed

Figure 2.43 Input VAT on Imports VAT/Tax Class Selection



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Figure 2.44 Input VAT Imports Ledger Completion


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8. The opening balance can be entered if input VAT is carried forward from previous year. As anillustation enter the Opening Balance as 500. Ensure that it is a debit balance.

Figure 2.45 Input Imports - Opening Balance


iii. Sundry Creditor Ledger



Click on F12: Configure button and set the field Use ADDRESSES for Ledger Accounts toYes.


1. Enter the Name as Opulent Apparels

2. Select Sundry Creditors in the Underfield



The Name will be displayed as Opulent Apparels



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6. PressY orEnterto accept the party ledger screen.

iv. VAT Commodity



1. Enter the Name ofVAT Commodity as Boubou




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4. Enter the VAT Commodity details in Notes if required



v. Stock Item



1. Enter the Name as Boubou



4. In the Commodity field, select the VAT Commodity as Boubou.

5. Enter the Rate of VAT as 12.5%.

6. Set NHIL Exempted to No as it is taxable at 2.5%.The completed stock item creation screen displays as shown:

Figure 2.48 Stock Item Boubou



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vi. Foreign Currency Creation

In F11: Features > F1: Accounting Features set Allow Multi-Currency toYes

To create a foreign currency,Go to Gateway of Tally > Accounts Info. > Currencies > Create

1. Enter the currency symbol as XOF in Symbol field.

2. Enter the name of the currency as CFA Franc in Formal Name.

3. Enter the number of decimal places as 2.

4. Set Show Amount in Millions toYes.

5. Set Is Symbol SUFFIXED to Amounts toYes for the symbol to appear after the amount.

6. Set Put a SPACE between Amount and Symbol toYes to apply a space between amountsand symbol.

Figure 2.49 Foreign Currency Creation

7. Press Ctrl+A to accept the Currency Creation screen.

Step 2:

Let us enter the transactions in Tally.ERP 9.


1. Enter the reference number in Reffield

2. Select Opulent Apparels in the Partys A/c Name fieldfrom the List of Ledger Accounts


4. Select Purchases - Imports @ 12.5% ledger in the Purchase Ledgerfield from the List ofLedger Accounts

5. On selecting the Purchases Ledger, the VAT/Tax Class field displays Purchases - Imports @12.5% as it is defined in the ledger master

6. Select the Name of Item as Boubou from the List of Items

7. Enter the Quantity as 700 and Rate as XOF 30,000.The Forex Rate of Exchange screen willbe displayed for entering the conversion factor. Enter the details as shown:

Figure 2.50 Forex Rate of Exchange screen


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8. The amount is automatically displayed in the Amount field

9. Select the ledger - Input VAT @ 12.5% on Imports. The exchange rate and the resultant valuewill be automatically calculated and displayed

10.Select Input NHIL @ 2.5% ledger. The exchange rate and the resultant value will be calcu-lated on the assessable value and displayed


12. Enter the details in the Narration field if required

Figure 2.51 Purchase Invoice Imports

13. Press Accept button (Ctrl+A) to accept and save.


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2.8 Purchase Returns

In cases where the purchasing dealer has returned the goods to the seller for any reason, the

input tax credit already claimed on the purchase by the dealer shall be liable to reversal of taxcredit on such goods returned, in the manner as may be prescribed.

Example 8:

On 27-1-2011, Premier Enterprise returned 100 nos of Boubou to Opulent Apparels as it was notas per the specifications, against the purchase dated 25-1-2011 vide invoice number DN/001. Theexchange rate was GH1 = XOF 302.67.

Step 1:

Let us record the transaction in Tally.ERP 9

To create a debit note for purchase returns,

In F11: Features > F1: Accounting Features, set the following options toYes:

Use Debit/Credit Notes

Use Invoice mode for Debit Notes

Figure 2.52 F11: Accounting Features Enabling Debit Note Invoice


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Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9: Debit Note

1. Press the toggle key Ctrl+V to select the option As Invoice.

2. Enter the reference number in the Ref. field.3. Select the Purchase Returns Or Rejected flag from list ofVAT Adjustments in the field Used

For

Figure 2.53 Used for Purchase Returns or Rejected

4. Select Opulent Apparels in the Partys A/c Name field from the List of Ledger Accounts


6. Select Purchases - Imports @ 12.5% ledger in the Purchase Ledgerfield from the List ofLedger Accounts

7. On selecting the Purchases Ledger, the VAT/Tax Class displays Purchases - Imports @12.5% as it is defined in the ledger master

8. Select the Name of Item as Boubou from the List of Items

9. Enter the Quantity as 100. The Rate appears as 80.

10.Select the ledger - Input VAT @ 12.5%. The exchange rate and the resultant value will beautomatically calculated and displayed

11.Select Input NHIL @ 2.5% ledger. The exchange rate and the resultant value will be calcu-lated on the assessable value and displayed

12.The field Show Statutory Details will be set to No



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14. Enter the Narration, if required

Figure 2.54 Debit Note Purchase Returns

15. PressY orEnterto accept the debit note.

2.9 Sales Returns

Where a selling dealer has received back the goods as a result of sales return the output taxcollected thereon will be reduced, adjusted or refunded in the manner as may be prescribed.

Example 9:

On 8-1-2011, Premier Enterprise received 20 nos of Kente Print Fabrics returned by ApparelsEnterprise against the sales dated 6-1-2011 vide invoice number CN/001.

Step 1:


To create a credit note for sales returns,

In F11: Features > F1: Accounting Features, set the option Use Invoice mode for CreditNotes toYes


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Go to Gateway of Tally > Accounting Vouchers > Ctrl+F8: Credit Note

1. Enter the reference number in the Ref. field.

2. Select the Goods Sold Returned from list ofVAT Adjustments in the field Used For3. Select Apparels Enterprise in the Partys A/c Name field from the List of Ledger Accounts


5. Select Sales @ 12.5% ledger in the Sales Ledgerfield from the List of Ledger Accounts

6. On selecting the Sales Ledger, the VAT/Tax Class field displays Sales @ 12.5% as it isdefined in the ledger master

7. Select the Name of Item as Kente Print Fabric from the List of Items. Enter the Quantity as20, the Rate and Amount will be displayed automatically

8. Select Output VAT @ 12.5% and the value will be automatically calculated and displayed

9. Select Output NHIL @ 2.5% ledger and the value will be displayed

10.The field Show Statutory Details will be set to No


12. Enter the Narration, if required

Figure 2.55 Credit Note Sales Returns

13. PressY orEnterto accept the voucher.


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2.10 Adjustment of Input against Output Tax & Payment of Tax

At the end of every tax period it is advisable to set off the output tax with Input tax. The excess of

output tax has to be paid to the Department. For any tax period if input tax is in excess of outputtax, the input tax needs to be adjusted only to the extent of output tax liability and balance of taxcredit can remain in the respective ledgers.

The Input Tax can be adjusted towards output tax using:

Journal voucher for recording adjustment entry and then a payment entry for paying VATdues

Recording a payment voucher using Stat Payment button with Auto-fill option to adjustinput against output VAT and make the payment.

2.10.1 Journal Voucher Adjusting Input VAT against Output VAT

Example 10:On 31-1-2011, Premier Enterprise recorded an adjustment entry in journal voucher to set-off theinput tax credit against the VAT liability.

Step 1:

Let us create the VAT Payable Ledger.

Creating Ledgers

i. VAT Payable

To create a VAT Payable LedgerGo to Gateway of Tally > Accounts Info > Ledgers > Create

1. Enter the Name as VAT Payable

2. Select Current Liabilities as the account group in the Underfield

3. The Currency of Ledgerfield will be displayed as multi-currency feature is enabled


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Figure 2.57 Journal Voucher - Entry to set-off the Output VAT dues against Available Input Tax Credit

7. Press Y orEnterto accept and save.

In case the aggregate of input vat ledgers is less than the debit values of

output tax, transfer the balance amount to VAT Payable ledger by selecting it

in the credit field. VAT Payable ledger can be grouped underCurrent Liabili-

ties orDuties & Taxes with Type of Duty/Taxas Others.


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2.10.2 Payment of VAT

Example 11:

On 1-2-2011, Premier Enterprise paid VAT liability of GH7,483.07 using Payment Voucher.

Step 1:


Go to Gateway of Tally > Accounting Vouchers > F5: Payment

Press F12: Configure and set Use Single Entry mode for Pymt/Rcpt/Contra toYes

In the Payment voucher screen,

1. Click the Stat Payment button or press Alt + S to display the Statutory Payment sub-screen.

Figure 2.58 VAT Payment Statutory Payment

2. In Statutory Payment sub-screen, provide the details given below:

Type of Duty/Tax: Select VAT as the payment is being made towards VAT dues.


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Auto Fill Statutory Payment: Set it to No as the input tax is already adjusted towards out-put tax and the balance amount is transferred to VAT Payable ledger.

Figure 2.59 Statutory Payment

In the Payment Voucher, select the Bank ledger in Account field. (use Crtl+A key combi-nation and create a bank ledger grouped under Bank Accounts. Enter the opening balance

if any).3. UnderParticulars, select the VAT Payable ledger and enter the corresponding ledger bal-

ance.

4. Set Provide Details toYes to display the VAT Payment Details screen.

Figure 2.60 Payment Voucher Provide Details


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5. In the VAT Payment Details screen enter the details pertaining to period of return, date onwhich amount is deposited, name of the bank and the cheque number. The VAT PaymentDetails screen displays as shown:

Figure 2.61 VAT Payment sub-screen

6. Press Enterto accept the VAT Payment Details screen.

7. In the Bank Allocations screen, enter the Favouring Name of the person or organisations inwhose favour the cheque is being issued, the Cheque numberand Cross Instrument Usingdetails:

Figure 2.62 Payment Voucher - Bank Allocation


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Figure 2.63 VAT Payment Voucher

9. Press Y orEnterto accept the payment voucher.

Marking Vouchers as Optional to Illustrate Second Scenario of Recording Payment Entry

In F11: Features > F1: Accounting Features set the option - Use Reversing Journals &Optional Vouchers to Yes and accept the screen. Go to Gateway of Tally > Display >Daybook. Press F2: Period button (Alt+F2) and set the period as 1-1-2011 to 31-1-2011. Selectthe Journal Voucher and press enter. Press L: Optional button (Ctrl+L) and then accept thevoucher using Ctrl+A key combination. Then select Payment voucher and mark it as optional byselecting L: Optional button and accept using Ctrl+A key combination.


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2.10.3 Payment Voucher Adjusting Input against Output Tax & Paying VAT

Example 12:

On 1-2-2011, Premier Enterprise recorded a payment entry after adjusting the input tax againstoutput tax.

Step 1:

Let us record the transaction in Tally.ERP 9.

To create a VAT payment voucher,

Go to Gateway of Tally > Accounting Vouchers > F5: Payment

Press F12: Configure button and ensure that Use Single Entry mode for Pymt/Rcpt/Contra isset toYes

In the Payment voucher screen,

1. Click the Stat Payment button or press Alt + S to display the Statutory Payment sub-screen.

2. In Statutory Payment sub-screen, provide the details given below:

Type of Duty/Tax: Select VAT as the payment is being made towards VAT dues.

Auto Fill Statutory Payment: Set it toYes to automate display of tax payable amount.

Adjust Input VAT for Payment: This field gets displayed only when - Auto Fill StatutoryPayment is enabled. On setting this field toYes, the tax payable amount gets calculated byoffsetting output tax against the available tax credit.

Period From: Enter the return period in From and To fields.

Figure 2.64 Statutory Payment

3. In the Payment Voucher, select the Bank ledger in Account field (use Crtl+A key combinationand create a bank ledger grouped under Bank Accounts).

The tax payable is auto-calculated and displayed in payment voucher on:

Paying only the output VAT amount usingStatutory Paymentbutton by

settingAuto Fill Statutory Payment to Yes andAdjust Input VAT for

Paymentto No

Setting options -Auto Fill Statutory PaymentandAdjust Input VAT for

Paymentto Yes when there is balance amount remaining after offsetting

tax credit.


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4. In the Payment Voucher, the output and Input tax amount will be automatically set-off and thetax payable amount gets calculated and displayed. Select the Bank ledger in Account field.

5. On using Stat Payment button, the Provide Details option is displayed.

6. Set Provide Details toYes to display the VAT Payment Details screen.

Figure 2.65 Payment Voucher Provide Details

7. In the VAT Payment Details screen, enter the details as shown

Figure 2.66 VAT Payment sub-screen

8. Press Enterto accept the VAT Payment Details screen.


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9. In the Bank Allocations screen, enter the name in whose favour the cheque is being issuedunderFavouring Name. Enter the Cheque numberand Cross Instrument Using details:

Figure 2.67 VAT Payment - Bank Allocation


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10.Enter the Narration if required

Figure 2.68 VAT Payment - Auto Fill

11.Press Y orEnterto accept the payment voucher.


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Lesson 3: VAT Reports

The VAT system is based on self-assessment and transparency at every stage of transaction.

Hence, accurate record maintenance is of critical importance.In Tally.ERP 9, the statutory returns can be generated as prescribed in the statues. In this lesson,the method of generating necessary invoices, reports and registers will be discussed. Thesereports help in better management of business and compliance of VAT.

3.1 VAT & NHIL Invoice

The VAT & NHIL invoice needs to be generated from the sales invoice configured to be used asTax Invoice.

Go to Gateway of Tally > Display > Day Book

Press F2: Period and change the period from 1-1-2011 to 31-1-2011. Select the invoice dated 12-1-2011. Else press F2: Date and enter the date as 12-1-2011.

1. Press Enterto display the sales Invoice in Alteration mode.

Lesson Objectives

On completion of this lesson, you will be able to generate

VAT & NHIL Invoice

VAT Computation Report

VAT & NHIL Return

VAT Commodity Report

VAT Registers


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2. Click on P: Print button (Alt+P) and select Yes in the Voucher Printing screen to print theinvoice

Figure 3.1 Voucher Printing VAT & NHIL Invoice


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3. The print preview of the VAT & NHIL invoice displays as shown:

Figure 3.2 Print Preview of VAT & NHIL Invoice

The explanation on VAT & NHIL Invoice is given below:

From: The Mailing Name entered in Company Creation screen is captured here. Suppliers TIN: The VAT TIN entered in Company Operations Alterations screen ofF3:

Statutory & Taxation features is captured here.

Customers TIN: The VAT TIN predefined in the party ledger master selected while record-ing the tax invoice is captured here.

Date of Invoice: The voucher date of the transaction is captured here.

To: The name of party ledger selected in the tax invoice is captured here.

QTY: The quantity of items invoiced along with the unit of measure is captured here.

DESCRIPTION: The names of stock items invoiced is captured here. Also if any additionalledgers are selected, the same will be displayed here.

UNIT PRICE (Excluding VAT & NHIL): The Rate per unit entered against each stock iteminvoiced in the tax invoice is captured here.

Amount: The value of each stock item, i.e., the quantity multipled by the rate, and theamount entered for the additional ledger selected while invoicing is captured here.

(I) Total Amount (excluding VAT & NHIL): The total of item value and additionalledger amount is captured here.

(II) VAT (12.5%): The output tax computed by using the VAT/Tax class - Output VAT @12.5% is captured here.


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(III) NHIL (2.5%): The output NHIL computed by using the VAT/Tax class - Output NHIL@ 2.5% is captured here.

(IV) TOTAL VAT + NHIL (II + III): The total of output tax and output NHIL is captured

here [box (II) VAT (12.5%) + box (III) NHIL (2.5%).

TOTAL AMOUNT PAYABLE (Including VAT & NHIL) (I + IV): The invoice value is cap-tured here [box (I) + box (IV)]

Terms of Payment: The Declaration entered in the Sales Invoice Voucher type set withthe option - Is Tax Invoice toYes is captured here.

3.2 VAT Computation Report

To view the VAT Computation Report,

Go to Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation

The VAT Computation reports provide the Assessable Value and the Tax Amount of the sales andpurchase transactions entered using different VAT/ Tax classifications.

The VAT Computation report displays as shown:

Figure 3.3 VAT Computation Report

The above screen displays the total of tax payable on sales and input tax available on purchasesmade during the specified period.


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The essence of VAT is the offsetting of Input tax against Output tax. The VAT computation reportshown above precisely indicates the value of Tax Payable after offsetting the input tax against theoutput tax.

Assessable Value

The Assessable Value is the total value of goods at which they are purchased and sold. Thisassessable value is the value on which VAT and NHIL is calculated.

Tax Amount

The total Tax Amount calculated on Assessable value using the respective Tax percentage is theTax Amount.

Show All VAT ClassificationsFrom the VAT Computation screen, click on F12: Configure and set Show All VAT Classifica-tions toYes.

Figure 3.4 VAT Computation Configuration VAT Classifications


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The VAT Computation with VAT Analysis displays as shown:

Figure 3.7 VAT Computation with VAT Analysis


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Detailed VAT Computation Report

Click on Alt+F1: Detailed button to view the detailed VAT Computation report as shown:

Figure 3.8 VAT Computation Detailed


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Figure 3.9 VAT Computation Detailed

The report also provides drill down facility for each VAT classification listed in it. To drill down,select the required classification and press Enter.

3.3 VAT Classification Vouchers

To view the VAT Classification vouchers, select any one the VAT Classifications from the VATComputation report and press Enter.


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The VAT Classification Vouchers report displays as shown:

Figure 3.10 VAT Classification Vouchers screen


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3.4 VAT & NHIL Return

Every Dealer who isliable to pay tax under Ghana VAT are required to file a monthly return in VAT

& NHIL Return not later than the last working day of the subsequent month.Go to Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Return

Press S: Select Printerbutton (Alt+S), select the required printer and set the Paper Type as A4.

In the Print Report screen ofVAT & NHIL Report enter the Status/Designation of the Author-ised person, Place, Date and Due Date for filing return. The PrintReport screen displays asshown:

Figure 3.11 Print Report screen VAT & NHIL Return


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The VAT & NHIL Return for Premier Enterprise displays as shown:

Figure 3.12 VAT Monthly Return in Form I


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The explanation on VAT & NHIL Return is given below:

DUE DATE FOR SUBMISSION OF RETURN: The date entered in Due Date for Submission

field of VAT & NHIL Return Print Report screen is captured here.TAX IDENTIFICATION NUMBER (TIN): The VAT TIN entered in Company Operations Altera-tions screen ofF3: Statutory & Taxation features is captured here.

1. IF THE RETURN FOR THE PERIOD IS NIL TICK HERE: If there are no purchases or sales forthe return period, a tick mark will be displayed here.

2. VALUE OF TAXABLE SUPPLIES (OUTPUT) (EXCLUDING VAT & NHIL): The net assessa-ble value of sales made using the VAT/Tax class - Sales @ 12.5% is captured here.

3. VAT + NHIL: The aggregate value ofoutput tax and output NHIL of all taxable sales recordedusing the VAT/Tax class - Output VAT @ 12.5% and Output NHIL @ 2.5% is captured here.The net value is captured after considering sales returns.

4. ZERO RATE: The net assessable value of sales made using the VAT/Tax class - Sales - Zero

Rated is captured here.5. EXEMPT: The net assessable value of sales made using the VAT/Tax class - Sales - Exemptis captured here.

6. VAT + NHIL REMITTED: The VAT and NHIL paid to the Department is captured here. The pay-ment entry needs to be recorded in Payment Voucher using Stat Payment button. The pay-ment details need to be entered in VAT Payment Details screen to capture information inappropriate fields of the return form.

7. LOCAL INPUTS: The net assessable value of sales made using the VAT/Tax class - Pur-chases @ 12.5% is captured here.

8. VAT + NHIL: The aggregate value of input tax and input NHIL of all taxable purchasesrecorded using the VAT/Tax class - Input VAT @ 12.5% and Input NHIL @ 2.5% is capturedhere. The net value is captured after considering purchase returns.

9. IMPORTS: The net assessable value of purchases made using the VAT/Tax class - Pur-chases - Imports @ 12.5% is captured here.

10.VAT + NHIL: The aggregate value of input tax and input NHIL of all taxable purchasesrecorded using the VAT/Tax class - Input VAT @ 12.5% on Imports with Input NHIL @ 2.5%is captured here. The net value is captured after considering purchase returns.

11.TOTAL INPUT (VAT + NHIL): The total of input VAT on purchases within Ghana and Importsalong with input NHIL is captured here [box 8 (VAT + NHIL) + box 10 (VAT + NHIL)]

12.DEDUCTIBLE INPUT (VAT + NHIL) FOR THE PERIOD: The total input tax as perbox 11 isdisplayed here.

13.EITHER-NET PAYMENT DUE FOR THE PERIOD (Box 3 minus box 12): The net output VATamount is captured here [box 3 (VAT + NHIL) - box 12 (DEDUCTIBLE INPUT (VAT + NHIL)FOR THE PERIOD)].

14.OR NET CREDIT FOR THE PERIOD (Box 12 minus box 3): The excess of input tax remain-ing after making adjustments against the output tax for the return period is captured here [box12 (DEDUCTIBLE INPUT (VAT + NHIL) FOR THE PERIOD) - box 3 (VAT + NHIL)].

15.CREDIT BROUGHT FORWARD FROM LAST MONTH: The opening balance entered in inputVAT ledger master or input tax brought forward from previous return period is displayed here.


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DECLARATION: The details captured here are given below:

Name: The name of Authorised Person entered in Company Operations Alteration

screen ofF3: Statutory & Taxation features I ATTACH Cheque NO.: The Cheque number entered in VAT Payment Details of pay-

ment voucher recorded using Stat Payment button.

NAME OF BANK: The Name of the Bank entered in VAT Payment Details of paymentvoucher recorded using Stat Payment button.

DATED: The Deposit Date entered in VAT Payment Details of payment voucher recordedusing Stat Payment button.

3.5 VAT Commodity Report

In the VAT Commodity Computation report, the commodity-wise break-up assessable value and

tax amount of stock items invoiced using the respective VAT/Tax classification will be displayed.To view the Commodity-wise Computation report,

Go to Gateway of Tally > Display > Statutory Reports > VAT Reports

Click on VAT Commodity. The Commodity Report menu displays as shown:

Figure 3.13 VAT Commodity Menu

Select Purchases to view the Commodity-wise break-up of stock items invoiced as shown:

Figure 3.14 VAT Commodity Report Purchases

7/31/2019 Getting Started With Ghana VAT | Tally Shopper | Tall

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Getting Started With Ghana VAT | Tally Shopper | Tally Customization services | Tally Implementation Services