Record a credit note and watch the return change

Steps

1. 1

   Select Returns and choose the quarter

   In Tax Intelligence select Returns. On the VAT Return tab choose the year 2026 and select Q3, so that Period Start is 1 July and Period End is 30 September 2026.

   • Select Returns
   • Choose Year: 2026
   • Select Q3
2. 2

   Select Compute VAT Return

   Leave the switch on Projected, which counts every classified transaction, including those still waiting for review. Select Compute VAT Return. After a few seconds the totals and the boxes of the return appear.

   • Select Compute VAT Return
3. 3

   Note box 1b before the credit note

   Find the table headed FTA Form 201. Boxes 1a to 1g are standard rated sales for each Emirate. Box 1b, Dubai, shows 181,750 dirhams with VAT of 9,087.50. The September order of 61,250 is part of that figure.

4. 4

   Go back to Work and select Import

   Select Work to return to the Transactions tab, then select Import. The same window you used for the quarter's file opens.

   • Select Work
   • Select Import
5. 5

   Choose the credit note file

   Select Choose File and pick credit-note-september.csv. It has one row: the date of the credit note, the type INCOME, the amount minus 6,250, the customer, the credit note's own number MST-CN-0031, and CREDIT_NOTE in a column named document_type. The preview shows 1 Will import.

   • Upload Choose a file: credit-note-september.csv
6. 6

   Select Confirm import

   Select Confirm import, 1 row, and wait for the count to read 1 Imported. The window says the transaction is imported and not classified yet.

   • Select Confirm import (1 row)

   

7. 7

   Select Classify these transactions

   This time select Classify these transactions. Only the row you just imported is classified. When it is done the window says The imported transactions have been classified. Undo these classifications would put the row back to unclassified.

   • Select Classify these transactions
8. 8

   Select Close and find the credit note

   Select Close and hide the menu. The credit note is in the list with a negative amount, minus 6,250 dirhams. Look at its VAT column: Standard Rated. Under its confidence is the badge Credit note of MST-INV-7105, and its status is Auto-Approved. The AI was not asked. The credit note names the invoice it corrects, so it takes that invoice's treatment, and because a person approved the invoice, the credit note is approved automatically.

   • Select Close
   • Select Hide navigation
9. 9

   Select the row to read why

   Select the row to open it. The reasoning is headed Follows the original invoice, not AI reasoning, because no AI decided it. It says Credit note of MST-INV-7105: the credit note names the invoice, so it carries that invoice's treatment, and it cites Articles 61 and 62 of the VAT law, which cover credit notes. Select the row again to close it.

10. 10

    Check that the treatment matches the sale

    Close the row. The VAT column reads Standard Rated, the same as invoice MST-INV-7105, so the credit note will reduce the same box of the return. Had the original invoice still been waiting for review, the credit note would wait with it. A credit note that cannot be matched to its invoice, or that lands in a different box, is listed under credit note reconciliation in the pre-submission check, and the return cannot be filed until it is fixed or cleared with a written justification.

11. 11

    Compute the return again

    Select Returns, check that the period is still the third quarter of 2026, and select Compute VAT Return again. A saved return does not change by itself when transactions change: it has to be computed again.

    • Select Returns
    • Choose Year: 2026
    • Select Q3
    • Select Compute VAT Return
12. 12

    Read box 1b after the credit note

    Box 1b now shows 175,500 dirhams with VAT of 8,775. The credit note took 6,250 off the sales and 312.50 off the VAT due, and the net VAT payable at the top fell by the same 312.50.