VAT configuration in accounting software

Many tax errors do not start when the return is prepared, but when the accounting system is set up: a rate applied to an item that does not carry it, an invoice issued missing a mandatory field, or a tax account that does not post automatically. We configure the system correctly once, so the outputs are sound at source.

Who this service is for

For companies that have just started using an accounting package and want it set up correctly for tax from the outset, for companies seeing differences between the system reports and the figures in the return, and for anyone moving from one package to another who wants the settings carried over without inheriting their errors.

What the service covers

Setting up tax codes and linking them to items, services and revenue accounts.
Configuring the tax invoice template so it carries the mandatory fields.
Handling the special cases: exports, exemptions, and zero-rated supplies.
Configuring the system tax reports so they reconcile with what is filed in the return.
Training your team on correct data entry and documenting the approved settings.

How we work

Examining the current configuration and listing the errors in how tax is applied.
Determining the correct treatment for each item and service according to its nature.
Applying the configuration in a test environment and issuing trial invoices to verify it.
Reconciliation: comparing the system report against a manual calculation for the same period.
Sign-off and documentation, and training whoever handles daily entry.

Regulatory framework

UAE tax legislation requires specific fields on a tax invoice, and requires records to be kept in a form that allows them to be retrieved and reviewed. The accounting package is a means of meeting that; it does not move the responsibility away from the business.

An error in the setup does not stay a single error. It repeats with every invoice issued after it.