Article 62 outlines the procedure for correcting Output Tax amounts after a supply. If the tax due exceeds the tax calculated by the Registrant, a new Tax Invoice for the additional amount must be issued, and the difference is accounted for in the tax period when the increase was identified. Conversely, if the calculated tax exceeds the tax due, the Registrant must issue a Tax Credit Note. An amendment by Federal Decree-Law No. 18 of 2022 stipulates this credit note must be issued within 14 days of the events specified in Clause 1 of Article 61.
Title 7 - Calculation of Due Tax
Chapter 4 - Adjustment of Tax after the Supply Date
Article 62 Mechanism for Output Tax Adjustment
The Output Tax shall be adjusted according to the following:
If the Output Tax due for the supply exceeds the Output Tax calculated by the Registrant, the Registrant shall issue a new Tax Invoice for the additional amount of Tax and calculate the additional Tax due for the Tax Period during which such an increase was identified.
If the Output Tax calculated by the Registrant exceeds the Output Tax which should have been charged on the supply, the Registrant shall issue a Tax Credit Note according to the provisions of this Decree-Law [within 14 days from the date in which any of the situations provided for in Clause 1 of Article 61 of this Decree-Law took place.]
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