VAT Transactions in Cin7 Core

Cin7 Core has a wide range of sales and purchase transactions. Each of these transactions is VAT-compliant.

i.e., different VAT rules can be applied to items while creating transactions for them.

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 organization 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

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

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

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

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

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

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

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

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 within the Emirates.

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

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

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

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:

Case 4

Supplier Tax Rule

GCC VAT Registered

Locations/Bins

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

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

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

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

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

Bellow screenshot shows how to apply a VAT condition to a new Sale.

VAT Transactions in Cin7 Core

Sales Transactions in VAT

Case 1

Case 2

Case 3

Case 4

Case 5

Case 6

Case 7

Case 8

Case 9

Purchase Transactions within the Emirates.

Case 1

Case 2

Case 3

Case 4

Case 5

Case 6

Case 7

Case 8

Case 9

Taxes in Transactions

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