Cin7 Core has a wide range of sales and purchase transactions. Each of these transactions is VAT-compliant. Different VAT rules can be applied to items while creating transactions for them.
Before you start
- Only available for account holders/Organizations within the UAE
Sales transactions
- Estimates
- Sales Orders
- Delivery Notes
- Invoices
- Recurring Invoices
- Credit Notes
Purchase transactions
- Expenses
- Recurring Expenses
- Purchase Orders
- Supplier invoices
- Supplier credit note
Once you have set up the taxes, contacts, and products in Cin7 Core, you can start creating transactions. Transactions made are affected by the below criteria:
- Location from where your business is operating (within a designated zone or any other emirate)
- Place of supply
- Contact’s tax rule
For VAT-registered organizations operating outside of the designated zone, your transactions will incur VAT:
- Sales Transactions in VAT
- Purchase Transactions in VAT
Sales transactions in VAT
Here’s how the tax rule of your customers will affect your supply in designated zones.
| Customer Tax Rule | Location / Bins | Tax Rates |
|---|---|---|
| VAT Registered | UAE | Standard rate, Zero-rate, Exempt, Out of scope |
| Non VAT Registered | UAE | Standard rate, Zero-rate, Exempt, Out of scope |
| GCC VAT Registered | UAE | Standard rate, Zero-rate, Exempt, Out of scope |
| GCC VAT Registered | GCC | Out of scope |
| GCC Non-VAT Registered | UAE | Standard rate, Zero-rate, Exempt, Out of scope |
| GCC Non-VAT Registered | GCC | Out of scope |
| Non-GCC | - | Zero-rate |
| VAT Registered - Designated Zones | UAE | Standard rate, Zero-rate, Exempt, Out of scope |
| Non-VAT Registered - Designated Zones | UAE | Standard rate, Zero-rate, Exempt, Out of scope |
Let's understand each of these scenarios individually:
Case 1
Customer Tax Rule
- VAT Registered
Locations/Bins
- UAE
Tax Rates
- Standard rate, Zero-rate, Exempt, Out of scope
i.e. You're a supplier of products and services to a VAT registered customer in the UAE. The supply takes place within the UAE.
In this case, the supply of goods or services can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Case 2
Customer Tax Rule
- Non VAT Registered
Locations/Bins
- UAE
Tax Rates
- Standard rate, Zero-rate, Exempt, Out of scope
i.e. You're a supplier of products and services to customers who operate within the UAE and the supply takes place within the UAE and the Buyer is not registered for VAT.
In this case, the supply of goods or services can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Case 3
Customer Tax Rule
- GCC VAT Registered
Locations/Bins
- UAE
Tax Rates
- Standard rate, Zero-rate, Exempt, Out of scope
i.e. You're a supplier of products and services to customers who are registered for VAT in any of the GCC member countries other than the UAE and the supply occurs within the UAE.
In this case, the supply of goods or services can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Case 4
Customer Tax Rule
- GCC VAT Registered
Locations/Bins
- GCC
Tax Rates
- Out of scope
i.e. You're a supplier of products and services to customers who are registered for VAT in any of the GCC member countries other than the UAE and the supply occurs within the UAE.
In this case, the supply of goods or services can have any one of the following taxes:
- Out of the scope of VAT
Case 5
Customer Tax Rule
- GCC Non-VAT Registered
Locations/Bins
- UAE
Tax Rates
- Standard rate, Zero-rate, Exempt, Out of scope
i.e You're a supplier of products and services to customers who in any of the GCC member countries other than the UAE and who is not registered for VAT. The supply takes place within the UAE.
In this case, the supply of goods or services can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Case 6
Customer Tax Rule
- GCC Non-VAT Registered
Locations/Bins
- GCC
Tax Rates
- Out of scope
i.e. You're a supplier of products and services to customers who are in any of the GCC member countries other than the UAE and is not registered for VAT and the supply takes place within the GCC.
In this case, the supply of goods or services can have any one of the following taxes:
- Out of the scope of VAT
Case 7
Customer Tax Rule
- Non-GCC
Locations/Bins
- -
Tax Rates
- Zero-rate, Out of scope
i.e. You're a supplier of products and services to customers who are outside any of the GCC member countries.
In this case, the supply of goods or services can have any one of the following taxes:
- 0%
- Out of the scope of VAT
Case 8
Customer Tax Rule
- VAT Registered - Designated Zones
Locations/Bins
- UAE
Tax Rates
- Standard rate, Zero-rate, Exempt, Out of scope
i.e You're a supplier of products and services to customers who are registered for VAT in a designated zone in the UAE and the supply takes place within the UAE.
In this case, the supply of goods or services can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Case 9
Customer Tax Rule
- Non-VAT Registered - Designated Zones
Locations/Bins
- UAE
Tax Rates
- Standard rate, Zero-rate, Exempt, Out of scope
i.e You're a supplier of products and services to customers who are in a designated zone in the UAE and is not registered for VAT and the supply takes place within the UAE.
In this case, the supply of goods or services can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Purchase transactions with UAE
| Vendor Tax Rule | Location / Bin | Tax Rates |
|---|---|---|
| VAT Registered | UAE | Standard rate, Zero-rate, Exempt, Out of scope |
| Non VAT Registered | UAE | Out of scope |
| GCC VAT Registered | UAE | Bill of Entry, Standard rate, Zero-rate |
| GCC VAT Registered | GCC | Exempt |
| GCC Non-VAT Registered | UAE | Bill of Entry, Reverse charge |
| GCC Non-VAT Registered | GCC | Out of scope |
| Non-GCC | - | Bill of Entry, Reverse charge |
| VAT Registered - Designated Zones | UAE | Bill of Entry, Standard rate, Zero-rate, Exempt, Out of scope |
| Non-VAT Registered - Designated Zones | UAE | Bill of Entry, Standard rate, Zero-rate, Exempt, Out of scope |
Let's understand each of these scenarios individually:
Case 1
Supplier Tax Rule
- VAT Registered
Locations/Bins
- UAE
Tax Rates
- Standard rate, Zero-rate, Exempt, Out of scope
i.e You purchase products or services from a supplier who has registered for VAT within the UAE and the supply takes place within the UAE.
In such an instance, the supply of goods or services can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Case 2
Supplier Tax Rule
- Non VAT Registered
Locations/Bins
- UAE
Tax Rates
- Out of scope
i.e. You purchase products or services from a supplier who is in the UAE, also, who have not registered for VAT within the UAE and the supply takes place within the UAE.
In such an instance, the supply of goods or services can have any one of the following taxes:
- Out of the scope of VAT
Case 3
Supplier Tax Rule
- GCC VAT Registered
Locations/Bins
- UAE
Tax Rates
- Bill of Entry, Standard rate, Zero-rate
i.e You purchase products or services from a supplier who has registered for VAT within any of the GCC member countries other than the UAE and the supply takes place within the UAE.
In such an instance, the supply of goods or services can have any one of the following taxes:
- 5%
- 0%
Case 4
Supplier Tax Rule
- GCC VAT Registered
Locations/Bins
- GCC
Tax Rates
- Exempt
i.e You purchase products or services from a supplier who has registered for VAT within any of the GCC member countries other than the UAE and the supply takes place within the GCC.
In such an instance, the supply of goods or services can have any one of the following taxes:
- Exempt
Case 5
Supplier Tax Rule
- GCC Non-VAT Registered
Locations/Bins
- UAE
Tax Rates
- Bill of Entry, Reverse Charge
i.e You purchase products or services from a supplier who has not registered for VAT within that particular country within the GCC member countries other than the UAE and the supply takes place within the UAE.
In this case, there is no tax on goods but a Bill of Entry would be required for them. For services, a reverse charge is applicable.
Case 6
Supplier Tax Rule
- GCC Non-VAT Registered
Locations/Bins
- GCC
Tax Rates
- Out of scope
i.e You purchase products or services from a supplier who has not registered for VAT within that particular country within the GCC member countries, and the supply takes place within the UAE.
In such an instance, the supply of goods or services can have any one of the following taxes:
- Out of the scope of VAT.
Case 7
Supplier Tax Rule
- Non-GCC
Locations/Bins
- -
Tax Rates
- Bill of Entry, Reverse Charge
i.e. You purchase products or services from a supplier who is outside of the GCC member countries.
In this case, there is no tax on goods but a Bill of Entry would be required for them. For services, a reverse charge is applicable.
Case 8
Supplier Tax Rule
- VAT Registered - Designated Zones
Locations/Bins
- UAE
Tax Rates
- Bill of Entry, Standard rate, Zero-rate, Exempt, Out of scope
i.e. You purchase products or services from a supplier who has registered for VAT within a designated zone in the UAE and the supply takes place within the UAE.
In this case, there is no tax on goods but a Bill of Entry would be required for them. For services, the supply can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Case 9
Supplier Tax Rule
- Non-VAT Registered - Designated Zones
Locations/Bins
- UAE
Tax Rates
- Bill of Entry, Standard rate, Zero-rate, Exempt, Out of scope
i.e. You purchase products or services from a supplier who has not registered for VAT within a designated zone in the UAE and the supply takes place within the UAE.
In this case, there is no tax on goods but a Bill of Entry would be required for them. For services, the supply can have any one of the following taxes:
- 5%
- 0%
- Exempt
- Out of the scope of VAT
Taxes in transactions
You can apply a VAT condition to a new Sale or Purchase as a Tax rule.
- Publish to everyone.4.log-2010416261.zip30 KB
- Publish to everyone.4.log-2010416261.zip30 KB
- Publish to everyone.4.log-2010416261.zip30 KB
- Publish to everyone.4.log-2010416261.zip30 KB
- Publish to everyone.4.log-2010416261.zip30 KB
- Publish to everyone.4.log-2010416261.zip30 KB
- Publish to everyone.4.log-2010416261.zip30 KB