Hi
We are a dubai based company and need to submit VAT Return every quarter. I am having a problem with advance payment of any expense which includes VAT.
We have to pay office rent annually but the period is not the same as our accounting period. For example, our accounting period is from January to December and we have to pay rent for the period from April to March of next year. So, we have to record advance rent for 3 months. In Zoho books I am doing with manual journal.
Now, the problem is I can only record VAT for the amount recorded as Expense or Bill (here, for 9 month) because VAT is auto-calculated both in Expense and Bill. And the VAT for the remaining 3 months can not be recorded as this is advance rent payment which I can not show as expense of this year. As I am recording this advance payment with a Manual Journal entry, VAT is not included in VAT Return.
In this case, what should I do? I must record the full VAT amount in this quarter.
Regards
Lopa