UAE VAT Compliant Inventory Template

Ready-To-Use UAE VAT Compliant Inventory Template

Ready-To-Use UAE VAT Compliant Inventory Template in Excel, OpenOffice Calc, and Google Sheet to manage inward and outward stock of goods.

Moreover, this template consists of a Master Inventory sheet along with an Inward Inventory Register and Outward Inventory Register for each month.

Furthermore, you can define reorder quantities for each product. The template highlights reorder products as well as out-of-stock products in different colors.

Regulations for Managing Inventory under UAE VAT ACT 2017

Article 78 of Federal Decree-Law No. (8) of 2017 on Value Added Tax provides guidelines about Maintaining Accounts and Other Records.

Article 78 – Record-Keeping Under VAT Law 2017

Without prejudice to the provisions related to record-keeping stated in any other law, the Taxable Person shall keep the following records:

a. Records of all supplies and Imports of Goods and Services.

b. All Tax Invoices and alternative documents related to receiving Goods or Services.

c. All Tax Credit Notes and alternative documents received.

d. All Tax Invoices and alternative documents issued.

e. All Tax Credit Notes and alternative documents issued.

f. Records of Goods and Services that have been disposed of or used for matters not related to Business, showing Taxes paid for the same.

g. Records of Goods and Services purchased and for which the Input Tax was not deducted.

h. Records of exported Goods and Services.

i. Records of adjustments or corrections made to accounts or Tax Invoices.

j. Records of any Taxable Supplies made or received per Clause (3) of Article 48 of this Decree-Law, including any declarations provided or received in respect of those Taxable Supplies.

k. A Tax Record that includes the following information:

1) Due Tax on Taxable Supplies.
2) Tax due on Taxable Supplies according to the mechanism in Clause (1) of Article (48) of this Decree-Law.
3) Due Tax after the error correction or adjustment.
4) Recoverable Tax for supplies or Imports.
5) Recoverable Tax after the error correction or adjustment.

Source: www.mof.gov.ae

Reverse Charge Mechanism Under UAE VAT

Article 48 of the Federal Decree-Law No. (8) of 2017 on Value Added Tax provides guidelines for reverse charge mechanism:

Article 48 of the Federal Decree-Law No. (8) of 2017

Article 48 of the Federal Decree-Law No. (8) of 2017

Understanding Reverse Charge Mechanism

Under UAE VAT Law, the Reverse Charge Mechanism (RCM) is one of the tax regimes that apply to imports of certain goods and services.

Moreover, the supplier does not charge VAT to the consumer in the Reverse Charge Mechanism (RCM) under UAE VAT Law. Instead, the buyer or end customer pays the tax directly to the government authority.

Therefore, on import of products, the provider is exempt from paying VAT, and the seller’s responsibility to record a VAT transaction is moved to the recipient.

Reverse Charge Mechanism applies to the following:

  1. Import of products and services from other Gulf Cooperation Council (GCC) and non-GCC nations.
  2. The supplier of these goods/services must be based outside of the UAE and may or may not have a business there.
  3. Supply of hydrocarbons to a registered receiver in the UAE for resale by a registered supplier.
  4. A registered provider delivers crude/refined oil to a registered receiver in the UAE.
  5. A registered provider delivers processed or unprocessed natural gas to a registered receiver in the UAE.

Input Tax Credit on Reverse Charge Mechanism under UAE VAT Law

Tax paid under Reverse charge is a liability. Input tax RCM to be claimed on RCM will be adjusted against your Output tax. The registered dealer has to account for VAT on import purchases and can claim input later.

Download UAE VAT Compliant Inventory Template (Excel, OpenOffice Calc & Google Sheet)

UAE VAT Compliant Inventory Template

Keeping in mind the rules mentioned above, we have created a UAE VAT Compliant Inventory Template with predefined formulas and functions. This template helps maintain records of inward and outward movement of stock.

Download by clicking below on the desired format:

Microsoft Excel OpenOffice Calc Google Sheet

For issuing regular Tax invoices, you can download the Fully Automated UAE VAT Invoice Template from the link below:

UAE VAT Invoice Template

UAE VAT Invoice Template

Additionally, you can download Accounting templates like Inventory Template, Accounts Payable Template, Cash Book Template, Petty Cash Book Template, Marketing Budget, Expense Report Template, and Payroll Template With Attendance.

Furthermore, feel free to contact us for the customization of this template as per your requirement. We also design new templates based on your needs. You can hire us for our services on Fiverr or directly contact us at info@msofficegeek.com.

How to use UAE VAT Compliant Inventory Template?

Five easy steps to manage your Inventory with this template:

  1. Go to Inventory Setup file. Insert the product ID, Product name, VAT %, and Price per Unit for all products. Insert Vendor and customer details.
  2. Navigate to Inward Register and Outward Register to maintain records of inward and outward movement of goods for each month.
  3. Using the “Filter Option”, select product and insert inward and outward quantities in the Master Inventory Template.
  4. Define reordering quantities and it will highlight the row of the reorder products in green color.
  5. When the product is out-of-stock, it will highlight the row in yellow color with a strike-through line.

Components of UAE VAT Compliant Inventory Template

This template consists of 4 sheets: Inventory Setup File, UAE VAT Inventory Inward Register, UAE VAT Inventory Outward Register, and Master Inventory Template.

Let us understand the contents of each sheet in detail.

Inventory Setup File

UAE VAT Inventory

This file consists of the product’s purchase and sale pricelist as well as a vendor and customer list.

Purchase and Sales Price List consists of the following:

Product ID
Product Name
VAT %
Price/Unit

In the purchase price list insert the respective purchase price of the product. Whereas, in the sales price list, insert the respective sales price of the product.

Vendors List consists of the Vendor name and Vendor TRN number. If the goods are imported and subject to RCM insert the word “Import” in place of Vendor TRN.

Similarly, in the Customer List insert the Customer Name and Customer TRN number. If the goods are exported, insert the word “Export” in place of Customer TRN.

The purpose of this file is to save you from excessive manual entry while recording your inventory.

UAE VAT Inventory Inward Register (Purchase Register)

UAE VAT Inward Inventory Register

Select Month and Year from the dropdown list. The template displays “Total Purchase During the Month” automatically based on your entry.

UAE VAT Inventory Inward Register consists of the following columns:

Date
Product ID
Product
Purchase Invoice
Purchase Quantity
Vendor Name
Vendor TRN
Price
Taxable Value
VAT %
VAT Amount
Reverse Charge
Total Amount

As soon as you insert Date and Select Product ID from the dropdown list, the template fetches Product Name, VAT %, and Product Price.

Moreover, manually enter the Purchase Invoice Number and Purchase Quantity. Select Vendor name and it fetches Vendor TRN automatically from the Inventory Setup file.

Finally, The Taxable Value, VAT amount, and Total Amount column auto-fills based on the price and quantity. If the Vendor TRN consists of the word “Import” then the template calculates Reverse Charge on such purchases.

Furthermore, at the end of each month/week/day, update the data from the inward sheet to the Master Inventory sheet.  You can select a perpetual product using the Filter Option to get the total inward quantity of a particular product.

UAE VAT Inventory Outward Register (Sales Register)

UAE VAT Outward Inventory Register

Select Month and Year from the dropdown list. The template displays “Total Sales During the Month” automatically based on your entry.

UAE VAT Inventory Inward Register consists of the following columns:

Date
Product ID
Product
Invoice Number
Sales Quantity
Customer Name
Customer TRN
Price/Unit
Taxable Value
VAT %
VAT Amount
Total Amount

Insert Date and Select Product ID from the dropdown list. The template fetches Product Name, VAT %, and Product Price.

Insert Invoice Number and Sales Quantity. Select Customer Name and the Customer TRN is auto-populated. The Taxable Value and Total Amount auto-filled based on the price and quantity entered.

At the end of the month/week/day, update the data from the outward sheet to the Master Inventory sheet.  You can select a perpetual product using the filter option to get the total outward quantity of the product.

Master Inventory Template

UAE VAT Compliant Inventory Template

Select Month and Year from the dropdown list. Insert Location of the warehouse. The template displays “Stock Value” automatically.

Master Inventory Template consists of the following columns:

Product ID
Product Name
Inward Quantity
Outward Quantity
Quantity In Stock
Product Rate
GST %
Total Amount
Reorder Level
Status

Select the Product ID and it will automatically fetch the Product Name and Product price along with VAT %.

As discussed above, at the end of the month/week/day, you need to insert the inward and outward quantities. The “Quantity in Stock” column is auto-populated.

Stock value is always calculated on the purchase price.  The “Total Amount” column sums up Taxable Value and VAT Amount and displays the total invoice amount.

Moreover, you can select the reorder level. Reorder level helps to manage delays in delivery and to keep stock of well-performings products always available.

Therefore, insert reorder quantity. Once the stock reaches this level the status column displays “Reorder” and automatically highlights the row in green color.

Furthermore, when the product is out-of-stock, the Status column displays “Out of Stock” and automatically the row turns yellow with a strike-through line and red fonts.

Important UAE VAT Links

Download Federal Decree-Law No. (8) of 2017

Cabinet Decision No. (52) of 2017 on the Executive Regulations

Source: www.mof.gov.ae

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