Accounting & The Calculation Of VAT

Course Code: FA09

►Course Objective

 

  • List major terms of VAT such as a taxable person, input VAT, output VAT and exempt supplies
  • Recognize the effect of VAT adoption on their company’s financial statements
  • Explain how to account for VAT on purchase and sales of goods or services whether the entity is registered in VAT or not
  • Use the company’s trial balance to fill up a VAT return
  • Formulate a preliminary assessment of impact of VAT adoption on operations and accounts
  • Assess impact of VAT on selected industries

 

►Target Audience

 

  • Staff accountants
  •  senior accountants
  • chief accountants
  • accounting managers
  • controllers
  • internal auditors
  • tax consultants
  • tax preparers
  • other professionals in the accounting and finance functions

 

Course Outline

:Day 1

Introduction and basic mechanics of VAT

  • Basic mechanics of VAT
  • Definition of VAT
  • How VAT works: input and output VAT calculations
  • Persons and entities subject to VAT
  • Different types of supply
  • Taxable supplies within the scope of VAT: goods and services
  • Exempt supplies outside the scope of VAT
  • Zero-rated supplies
  • Deemed supplies

Day 2:

  • Place of supply: local versus export
  • VAT on sales charged on delivery, invoice or payment date
  • When to record and recover VAT on goods and services received
  • Local delivery
  • Imported goods and services
  • Taxable amount: which amount is subject to VAT
  • Discounts and free goods treatment
  • The party liable to pay VAT

Day 3:

Accounting for VAT

  • Issuing the VAT invoice
  • What does a VAT invoice look like
  • Contents of an invoice
  • Difference between cash business and sales on account
  • VAT records and documentation to be maintained
  • Accounting entries for VAT
  • Local purchases of goods and services
  • Imported goods and services
  • VAT on expenses
  • Self-supply of goods and services

Day 4:

  • VAT on sales
  • Discounts provided to customers
  • Interest on late customers’ payments
  • VAT entries for bad debts write-offs
  • VAT entries for down-payments
  • Treatment of damaged goods
  • VAT on leases taken: operating and finance leases
  • Purchases and sales of fixed asset
  • Entities providing non-vatable activities
  • Trial balance accounts needed to complete a VAT return
  • Expected format of a VAT return

Day 5:

Issues to be considered and addressed by industry

  • Retail
  • Automotive
  • Meetings, incentives, conferences and events
  • Financial services and insurance
  • Real estate and construction
  • Tourism
  • Oil and gas


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Date & Location

Date : 18 August 2019

Duration : 5 days

Place : Kuala Lumpur

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Date : 17 November 2019

Duration : 5 days

Place : Istanbul

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