Tax · Getting started · 6 min read

Getting started with Tax

The order to set up UAE VAT before the first return, with the menu for each step and who does it.

Plan the people

Tax enforces separation of duties, so you need at least three people with different permissions.

One tax administrator creates; another activates. For a return, the preparer, reviewer and approver must be three different people.

Set up in this order

1. Tax codes and rates. Go to Finance > Configuration > Taxes and press Install a country's taxes > AE. This adds SR 5 %, ZR, EX, OS, RC 5 %, IM 5 % and BL 5 % (not recoverable) with rates from 2018-01-01. See Tax codes and rates.
2. Fiscal positions (only if you need automatic swaps such as export to zero rated). Finance > Configuration > Fiscal positions. See Fiscal positions.
3. Legal source. Tax > Configuration > Legal sources: record the law the content rests on, for example Federal Decree-Law No. 8 of 2017. Another administrator activates it.
4. Country package. Tax > Configuration > Country packages: a version that names at least one active legal source of the same country. Another administrator activates it.
5. Tax authority. Tax > Configuration > Tax authorities: code FTA, tax VAT, currency AED, returns every quarter, due 28 days after the period end.
6. Registration. Tax > Configuration > Registrations: the TRN (15 digits for the UAE), valid from date, the authority. Another administrator activates it. See Registrations and country setup.
7. Return form. Tax > Configuration > Return forms and boxes: the boxes of your VAT return. See Return forms and boxes.
8. Determination rules (optional). Tax > Configuration > Determination rules, and the switch in Tax settings. See Determination rules and the simulator.
9. Tax settings. Tax > Configuration > Tax settings. See Tax settings and features.

First check

Open Tax > Overview. Tiles show Registrations in force, Active determination rules, Returns in progress and Needs attention. The Exceptions table lists what blocks or needs a look: no registration, none in force today, registration ending within 30 days, certificates ending within 30 days, posted lines without a tax code this quarter, unexplained return differences, and no approved country package.

First return

1. Post your invoices and bills with tax codes.
2. Prepare the return: Prepare a VAT return.
3. Review, approve and submit: Review, approve and submit.
4. Run the ledger checks: Tax reports and the ledger check.

Good to know

• Codes are capitals, digits, _, . or -, 2 to 30 characters, starting with a capital letter.
• Dates are typed as YYYY-MM-DD.
• An Active master cannot be edited. Archive it and create a new one, or send it Back to draft.
• Setting a master's validity: outside its dates it does not apply.