Output tax on sale of Commercial Property

Hello tax friends, what will be the entry in the books of supplier in case of ‘Output Tax on sale of commercial property’ since he has raised the Tax invoice but the buyer is paying Tax directly to FTA? Kindly advise.

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SAJITH N25/02/2021 10:25:31

You can record the sale invoice and reverse the output VAT to the customer receivable account. Or consider creating creating Output VAT adjustment GL in the books to record the reversal against customer receivable and this way adjustments are readily identifiable in the books. Output VAT/Output VAT adjustment (Dr) and Customer receivable GL ( Cr)

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