What is VAT Accounting Software?
VAT or VAT is a sales tax levied on various goods and services that customers Must pay. Taxes are calculated and collected on goods and services from production to sale. Sales tax accounting software allows you to maintain sales tax compliance while managing your business’s finances. For example, VAT-compliant software allows you to manage orders, books, accounts receivable, payables, and more. A reliable VAT-compliant accounting software solution must be certified by the FTA or federal tax authority.
3 Must-have features of UAE VAT-enabled software
UAE VAT accounting software must have three important features as per FTA guidelines:
FTA Audit File
FTA Audit File is also known as FAF. According to the FTA, the file must be in .csv or comma-separated values format. It must include three important details: Company information, supplier and customer data, transaction details. The company information must include the taxpayer’s name in English and then in Arabic. This must include the TRN tax or registration number, the name of the tax authority, the TAN, the name of the tax agent, and her TAAN or tax agent authorization number. Supplier and customer data must include customer location and supplier location. If applicable, you must also include your TRN number. In some cases, you may be required to provide a tax code to provide shipping details.
Transaction details must include all invoice details. These details include invoice amount, invoice number, invoice date, VAT amount, etc. The FTA audit file must also list the company’s goods and services and his VAT number. Details of adjustments and rounding of amounts made should also be included in the audit file. The software solution must be able to automatically generate FTA audit files.
Sales Tax Returns
The FTA clarifies that sales tax return files must be in the same format as listed and that businesses must submit them online using a sales tax compliant software tool. It is stipulated. A sales tax return is also known as a sales tax return 201. Your software should be able to automatically generate refund forms. You will need to enter details such as taxes payable, total purchase amount, output sales tax, and total sales amount. You should also group your supplies into different categories. These categories are reverse charge supplies, standard rate supplies, intra-GCC supplies, exempt supplies, and zero rate supplies. Before you can complete other tasks and complete your return, you must first enter your TRN number.
To ensure that you can claim your tax credit later, you must file a VAT return. This applies to businesses that are already VAT registered or will soon be VAT registered. If you are VAT registered, you must claim VAT.
You can also register for VAT Registration on our website: