How to set up UAE VAT in Zoho Books

Before you start

• Your Tax Registration Number (TRN)
• Whether you are mainland, free zone or in a designated zone
• Which goods and services are standard-rated, zero-rated or exempt
• Your accountant's chart of accounts

Step 1: Organisation and TRN

Set your organisation's location to the UAE, enable VAT and enter your TRN and its effective date. Your TRN then appears on tax invoices.

Step 2: Tax rates

• Standard rate (5%) for most sales
• Zero rate for qualifying exports and other zero-rated supplies
• Exempt for exempt supplies
• Out of scope for transactions outside UAE VAT

Step 3: Customers, items and place of supply

Mark each customer with their VAT treatment and emirate, and each item with its default tax. Wrong treatment on a customer is the most common cause of wrong VAT on invoices.

Step 4: Imports and reverse charge

Imported goods and services from abroad are usually accounted for under reverse charge. Set this on the relevant vendors and bills so it flows into your VAT return report.

Step 5: Test and file

• Raise test invoices for a mainland customer, a free zone customer and an export
• Check amounts and invoice layout with your accountant
• Use the VAT return report to prepare your return on the FTA portal

Frequently asked questions