The Taxes module provides the functionality that allows you to collect and report taxes in the UAE. The UAE government imposes the value-added tax (VAT) as indirect tax on all goods and services bought or sold by businesses.
For the entities that operate in the UAE, the following options are available:
- Tax Accounting by Emirate: If an entity operates in multiple emirates, VAT amounts are reported by emirate.
- Tourist Refunds: Both tourists and residents pay VAT when making a purchase. However, tourists can request a refund on VAT on certain conditions when leaving the country.
- Tracking of Out-of-Scope Sales: This option enables you to track the supplies to companies that are outside of the scope of UAE VAT and specify the Out-of-Scope reason for the entire sales document or for some of document lines.
- Tracking of Out-of-Scope Purchases: With this option selected, you can track the supplies from companies that are outside of the scope of UAE VAT and specify Out-of-Scope reasons for such supplies. For example, the supplies can be considered as out of the VAT scope if they are drop-shipped from one overseas business to another overseas business without being brought into the UAE.
- Tracking of Zero-Rated and VAT-Exempt Purchases: This functionality allows you to track zero-rated and exempt purchases and view the corresponding data in reports.
To view the settings related to taxes, open the following form: Administration > Configuration Settings > Taxes. For more information, refer to Settings: Taxes in User Guide.
Master Data
Master data is used as the key data in many types of transactions. For example, if you are calculating taxes, you need tax types, tax rates, tax codes, and so forth. If needed, you can add new master records at any time.
Taxes Documents
Using the documents in this module, your company can easily comply with the requirements of the UAE legislation to calculating VAT on appropriate supplies. You can manually adjust VAT input and output transactions in complicated cases and file VAT Returns with the required for your entity frequency. The application automatically fill out the VAT Return with the data from its database. For any row of the report, click the Details link to the right to view a report listing particular documents that affected the amounts in the row.
Service Tools
Using the VAT Audit File tool, you can export a file in the FAF format with all the details on all VAT transactions in the selected period.
Reports
The reports available in the Taxes module provide you with summary and detailed information on input VAT, output VAT, and recoverable VAT amounts. Also, you can view the exact balance of you tax accounts.
For example, the Recoverable VAT report provides information on the taxable amounts of standard-rated (5%) supplies purchased by each entity for which Tax Invoices were received from the suppliers. Also, the report includes the data on the tax-exempt supplies if the Tracking of Zero-Rated and VAT-Exempt Purchases option is selected in the settings.
You can filter the data by entity, company, contract, and currency. You can group the data by company, contract, and tax rate.
