Why does VAT matter in shop billing?
VAT collected from customers belongs to the government, and keeping an accurate record of it is the business's responsibility. Handwritten bills lead to VAT errors, lost records and audit problems. POS software adds VAT at the set rate on every bill and stores all transactions digitally.
Note: this article gives general information. Confirm the VAT rate for your products, any device requirements and your return obligations with your VAT adviser or VAT circle office.
What are EFD and SDC?
- EFD (Electronic Fiscal Device): creates a receipt with VAT details at the point of sale and sends that data to NBR's system.
- SDC (Sales Data Controller): connects the sales data of businesses that already use POS or billing software to the VAT system.
NBR's current approach is a hybrid one: retail sales data is captured in near real time through EFD/SDC devices, while VAT liability is self-assessed and filed periodically on the online e-VAT platform.
What are Mushak 6.3 and Mushak 9.1?
| Form | What it is | When it's needed |
|---|---|---|
| Mushak 6.3 | Tax invoice | For taxable supplies |
| Mushak 9.1 | Monthly VAT return | Every month, on the e-VAT portal |
VAT documents generally need to be kept for five years. Keeping every bill and report digitally in the POS makes this easier.
Which VAT features should a POS have?
- VAT rates set by product or category
- VAT shown separately on every bill
- Sales and VAT reports by day, month and branch
- Correct adjustment for returns and cancelled bills
- An audit log of who created or changed each bill, and when
- The ability to connect to EFD/SDC or the VAT system where required
How do you take cash, card and mobile wallet on the same bill?
Many customers want to pay part of a bill in cash and the rest by card or mobile wallet. With split payment, the POS records several methods on one bill, and at day's end the cash register shows exactly how much came in through each method.
- Enter the opening cash float at the start of the day.
- Record the payment method on every bill during the day.
- At day's end, compare the counted cash with the amount the system expects.
- Record the reason for any difference.
What are common VAT billing mistakes?
- Not issuing a VAT receipt unless the customer asks for one
- Not adjusting VAT for returned goods
- Keeping branch sales in separate books, causing monthly mismatches
- Not recording deleted or changed bills
How does MyPosGPT help with billing?
MyPosGPT's POS billing offers fast barcode billing, VAT calculation, split payments on one bill, cash register reconciliation, and sales and VAT reports. To discuss your VAT setup and any EFD/SDC connection needs, book a demo.
