VAT and accrued revenue

Hi,

This is a query re VAT and accrued revenue. Could you please advice whether a VAT liability will arise on a revenue accrual in KSA and UAE? Or will a VAT liability only arise on the invoices raised and not on accruals?

Thanks in advance.

Replies
SAJITH NAIR19/04/2022 14:49:58

VAT liability arises on date of supply getting triggered ie earliest of invoicing, payment, delivery of good or services. So one need to ensure that the accrued revenue is not violation of the date of supply rules. For example if goods are delivered the date of supply gets triggered and Tax invoice will have to be issued. Intentionally delaying the invoicing and recognising only accrued/unbilled revenue will not be correct as per VAT Law provisions.

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