Output VAT Transaction Method

This setting defines how the output VAT is recorded in GL journal entries. Select one of the following options:

• Exclude from revenue:  To record the increase in revenue as a VAT-excluded amount.
• Include in revenue:  To record the increase in revenue as a VAT-included amount. Then, another transaction deducts the output VAT amount from revenue and post it to the dedicated GL account (Output VAT account).

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.

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. Also, 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. This data is not required for VAT Return in the UAE.

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 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. If this option is selected, you can select the Out of Scope taxation option and specify an Out-of-Scope reason for entire document or 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. This data is not required for VAT Return in the UAE.

VAT Accounting by Emirate

This option is available only if the UAE is selected as country of tax registration.
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.
Selecting the option enables the Emirate field / column in the sales documents. If all the entity's transactions are within the same emirate, you can select this emirate as the default emirate in the entity master record.
Do not select this option if your entity operates in another country.

Enable E-invoicing for KSA Entities

This option is available only if the KSA is selected as country of tax registration.
Select this option if any of your entities operates in the KSA and should register tax documents with the Tax Authority according to the KSA legislation. You will need to configure a connection to the Fatoora portal and then, send the tax documents to this portal for registering.

Payroll Taxes and Contributions Accounting

WHT Accounting

If selected, this option enables accounting for withholding tax that an entity must withhold and remit to the Tax Authority on behalf of any resident if a payment to this non-resident is made from the source in this country. Applicable to specific types of services.

WHT Accounting: Pre-Accrue VAT in Invoices

If the WHT Accounting option is selected, you can specify whether the tax must be calculated in Invoices and Payments or only in Payments.

Other Tax Accounting