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Setting | Description |
Output VAT Transaction Method | This setting defines how the output VAT is recorded in GL journal entries. Select one of the following options:
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VAT Accounting by Emirate | Select this option if your entity operates in the UAE, because each company must report all the VAT-related data by emirate even if the company operates strictly within one emirate only. |
Enable Tax Groups | This option (if selected) enables the tax groups. Several businesses under common ownership that use a single consolidated accounting system may be registered as a tax group and treated as a single taxable person for VAT purposes, that is, they file consolidated VAT Returns. For details, see Overview of Tax Groups. |
Tourist Tax Refund | Selecting this option enables the functionality related to tax refunds made to tourists. For details, refer to The Tax Refund for Tourists Scheme. |
Tracking of Zero-Rated and VAT-Exempt Purchases | This option (if selected) enables the functionality that allows you to track zero-rated and exempt purchases and view the corresponding data in reports. This data is not required for VAT Return in the UAE. |
Tracking of Out-of-Scope Sales | Selecting this option enables you to track the supplies to companies that are outside of the scope of UAE VAT. For example, if the entities of your company are registered as a tax group, sales transactions between them are considered out of scope of VAT. If this option is selected, you can select the Out of Scope taxation option and specify an Out-of-Scope reason for the entire document or for some of document lines; applicable to Invoice, Credit Note, Consignee Report, Fixes Asset Sale, and some other documents. |
Tracking of Out-of-Scope Purchases | Selecting this option enables you to track the supplies from companies that are outside of the scope of UAE VAT. For example, the supplies can be considered out of scope if they are drop-shipped from one overseas business to another overseas business without being brought into the UAE. If this option is selected, you can select the Out of Scope taxation option and specify an Out-of-Scope reason for the entire document or for some of document lines; applicable to Invoice Received, Debit Note, Subcontractor Report, Additional Expenses, Employee Expense Report, Bank Payment, Cash Payment, and some other documents. |