Requirement Document For Tax Accounting Software

Requirements Document for Tax
Accounting Software
October 2017
Contents
1. Introduction .....................................................................................2
2. Importance of Tax Accounting Software to Businesses ..............2
2.1. What is Accounting Software? ................................................................................ 2
2.2. What is a Tax Accounting Software?....................................................................... 2
2.3. Tax Accounting Software in the context of the FTA ................................................. 3
3. Guidance for Tax Accounting Software Vendors .........................4
3.1. General Principles................................................................................................... 4
3.2. Non-Functional Requirements ................................................................................ 6
4. FTA Audit File ................................................................................10
5. Generation and Filing of VAT Returns .........................................11
6. Contact Information ......................................................................13
7. Conclusion.....................................................................................13
8. Appendix 1 – Key Data Elements to be present in FTA VAT Audit
File (“FAF”) .........................................................................................14
9. Appendix 2 – Key Data Elements to be present in FTA Excise
Tax Audit File (“FAF”) ........................................................................17
10. Appendix 3 – Types of VAT Supplies and Purchases ................20
11. Appendix 4 – Types of Excisable Activities ................................ 26
12. Appendix 5 – FTA VAT Audit File (FAF) .......................................28
13. Appendix 6 – FTA Excise Tax Audit File (FAF) ........................... 35
14. Appendix 7 – Producing Data Required for VAT Return
Preparation ..........................................................................................44
15. Appendix 8 – VAT return format...................................................47
16. Appendix 8 – Excise Tax return ...................................................57
Glossary .............................................................................................. 61
Page 1 FTA Target Operating Model

1. Introduction
This document is issued by the Federal Tax Authority (FTA) and includes the required
functionalities within the tax accounting software which are needed to generate VAT
returns, to automatically file VAT returns and to produce the FTA Audit files (“FAF”)
for VAT and Excise Tax.
2. Importance of Tax Accounting Software to

Businesses
2.1. What is Accounting Software?

Accounting software is an invaluable resource for modern business. Essentially, it is
a ‘set of procedures that includes internal mechanisms of control, books of accounts,
and plans/charts of accounts that are all used for administering, recording, and
reporting financial transactions.
Functional modules that are typically built into an accounting software include
accounts receivable, accounts payable, sales orders, purchase orders, inventory,
billing, and general ledger.
2.2. What is a Tax Accounting Software?

Tax accounting software is developed to accurately capture and produce accounting
information for tax reporting. Instituting an automated system by businesses to
maintain a record of taxes will decrease the error in tax declaration, and thus, reduce
the compliance costs and penalties issued to the business. In addition, the software
will be able to generate reports in order to keep track of the tax system by seeking
inputs from a company’s peripheral systems.
Tax accounting software provides a platform for increased communication and
cooperation between the public and private sectors.
The term “tax accounting software” is applied and interpreted broadly throughout the
document to encompass functionality that ordinarily relates to accounting systems, tax
compliance technologies (for e.g. Accounts Receivable and Accounts Payable), and
other connected finance systems (for e.g. POS terminals).
Therefore, tax accounting software allows for the automation of all tax-based
responsibilities, i.e., keeping track of records, payments, file returns, etc., saving
businesses time and money.
Page 2 Tax Accounting Software

2.3. Tax Accounting Software in the context of the FTA
Software vendors must strictly abide by this guide when developing the tax accounting
software.
Three key functionalities that must be included in the accounting software require the
system to have the ability to automatically generate 1) a standard file known as the
FTA Audit File, 2) VAT return file, and 3) tax invoices and credit/debit notes. Vendors
will be required to demonstrate that their tax accounting software has this functionality
and complies with the requirements in this guide.
Please see below the anticipated landscape when businesses use tax accounting
software.

3. Guidance for Tax Accounting Software
Vendors
3.1. General Principles

This guide is aligned with the principles set out in the guidance note of the Organisation
for Economic Cooperation and Developments (“OECD”), titled the Guidance and
Specifications for Tax Compliance of Business and Accounting Software issued in
April 2010. While the principles are the same, certain details have been adapted to the
FTA context.
Software vendors must ensure that their tax accounting software:
 allows automatic production of an non-editable VAT return files based on the
format mentioned in the relevant Appendix in this document with no assistance
required from the software vendor or any other IT specialist;
 allows automatic production of a FAF by a user with no assistance required
from the software vendor or any other IT specialist; and
 provides the issuance of tax invoices, credit/debit notes and self-billed invoices
that comply with the VAT Legislation;
The software vendors must also ensure that their tax accounting software:
 provides a reporting facility for the efficient generation of information necessary
to prepare tax and returns;
 is accompanied by comprehensive user-guide documentation to assist auditors
and users to understand how the software operates;
 incorporates adequate internal controls and tax protection controls to ensure
reliability of the processed data;
 creates adequate audit trails to assist auditors in understanding the flow, and,
if necessary, the reconstruction of events;
 has archival and restoration of archived data mechanisms in place, in order to
ensure the integrity and readability of electronic records after an extended
period, as well as to allow auditors to retrieve the records as required;
 captures key data elements necessary for the generation of a VAT return file;
 helps the taxpayer in filing VAT returns automatically;
 captures key data elements necessary for the generation of a FAF;
 provides comprehensive documentation to assist auditors and users in their
understanding of the system, the processing, and its environment; and

 contains facilities to allow audit automation to assist auditors in gaining audit
assurance and enabling businesses to self-test their tax data.
The accounting software must be able to produce tax invoices as well as credit/debit
notes as prescribed below:
 Tax invoice
o A tax invoice is an important document for VAT. If an invoice issued by the
supplier does not comply with the VAT legislation, the buyer may not be
eligible for Input Tax Credit (ITC) claim. Therefore, software vendors must
ensure their system complies with these legislations. Furthermore, the tax
invoice must fulfil the prescribed particulars based on the legislations.
 Credit Note / Debit Note

o A person who makes or receives a supply shall issue a credit note or debit
note where, after the return of the supply has been furnished to FTA, there
is a change in the consideration for the supply in term of quantity, tax rate,
or cancellation of transactions 1due to any adjustments in the course of
business.
 Self-billed
o Any recipient approved by the FTA is allowed to issue self-billed invoices
in respect of the supplier’s supplies for a period of approval effective until a
given date or period outlined in the contracts between the recipient and the
supplier.
3.1.1. Facility to generate necessary data elements to prepare VAT

returns
Businesses are required to file their VAT returns on a periodical basis. Tax accounting
software should allow users to obtain the necessary information required for the
preparation and filing of tax returns. This will entail generation of the VAT returns and
automatic filing of VAT returns.
3.1.2. Captures key data elements necessary for the generation of a FAF
Appendices 1 and 2 lists the key data elements that should be present in a FAF. These
data elements include common accounting information that should be recorded.
3.1.3. Allows automatic production of a FAF by a user with no assistance
required from the software vendor or other IT specialist
FTA conducts periodic audits to ensure that tax and returns have been prepared
correctly. For this purpose, businesses may be required to submit a detailed
breakdown of their business transactions. Submitting this information electronically will
save time and resources for businesses.
It is crucial that the detailed information electronically transmitted by businesses to the
FTA is complete, accurate, and in a format that is readable by the FTA. Hence,

software vendors should design their accounting software such that it is able to
generate a FAF. The FAF is a file containing a standard set of accounting information
(please check the relevant Appendices). Businesses should have the flexibility to
select the time-period that the FAF is required to span over.
The FAF should be a pure collection of data in the comma separated values (csv) file
format and should be broken down by, but not limited to, invoices, credit notes etc., to
give all the required information to FTA to conduct the Audit. The taxpayer should not
be able to modify any value in the FAF. The FAF should not be an image file.
Tax accounting software vendors should design a system that can create the FAF at
different stages, e.g. when a transaction is recorded, or when data is archived and a
permanent record of auditable transactions is created. The FAF should be able to be
generated from data residing in either a single source or multiple sources, if applicable.
Notwithstanding the receipt of a FAF, FTA auditors may still need to verify the original
records (including source documents) kept by businesses. Having accounting
software that is able to generate a FAF will not remove the requirement for businesses
to keep records in accordance with the provisions in the Treaty.
3.2. Non-Functional Requirements

3.2.1. The tax accounting software must be accompanied by
comprehensive documentation to assist auditors, as well as users,
in understanding how the software operates
The accounting software should have proper documentation that allows both internal
and government auditors as well as users to easily understand how to operate the
software. This would include a user manual (printed and/or web-based) and thorough
system-based help files.
3.2.2. Software vendors must incorporate adequate internal controls to
ensure reliability of the processed data
Internal controls are essentially the processes, procedures, practices, and
organizational structures implemented by a business to reduce risk and provide a
reasonable level of assurance when meeting business objectives. In addition, there
should not be any unrecorded assets, liabilities, entries or events, or undisclosed items
in the accounting system.
Software vendors must ensure the internal controls in their accounting software are
able to perform preventive, restorative and corrective functions. In other words, there
must be controls to prevent, detect, reverse and correct errors that arise when using
the software.
Internal controls in accounting software that are relevant to the integrity of a tax
declaration include controls in the following areas:

System Access Access controls to ensure that only authorised users can
access and process data based on the permissions
given.
Password control features should be built into the
system, i.e. password change upon initial login,
minimum password length, password complexity,
password history, etc.
Data Capture Application controls to capture and retain information
required for the filing of tax returns, i.e. input validation
controls to detect and prevent invalid, incomplete, or
duplicate data from being input into the system
(sequence checks should be done to prevent duplicate
records).
The data fields that need to be captured in order to
generate a complete FAF along with the accepted
formats for a FAF are in Appendix 5 for VAT and
Appendix 6 for Excise Tax.
Data Processing Application controls to prevent, detect, reverse, and
correct errors in transactions as they flow through the
various stages of data processing, as well as to ensure
the integrity of the information. The system should also
be able to prevent concurrent file update.
Output Controls Application controls to ensure that the system output is
in the correct format and users who receive the output
will be alerted to take necessary follow-up actions, if
any.
Data Security Application controls to prevent the editing and deleting
Controls of entries made. Changes to recorded entries should be
made by adjusting the journal entries and must include
adequate documentation such as:
 person making modification
 date of modification
 details of previous entry
 details of current entry
Backup Controls Backup controls to ensure retention of backup copies of
electronic records include accounts payable, accounts
receivable, general ledger, and fixed assets. There
should also be verification mechanisms to ensure data
is properly backed up or recovered.

Processing Logic Controls to ensure that the criteria used to process the
data is correct and that any change to the processing
logic is restricted.
3.2.3. Software vendor must create adequate audit trails to assist

auditors in the understanding of the flow of events and
reconstructing of the events, if necessary
The accounting software should allow auditors to reconcile the information in the tax
and returns with the accounting records in order to prove events and transactions by
recording the progress of individual entries. Hence, it is important that the accounting
software provides auditors with adequate audit trails to understand the flow of events
and, if necessary, to reconstruct the events. The software must not allow anyone to
amend the records without creating the necessary audit trails.
3.2.4. Software vendor has put into place archival and restoration of
archived data mechanisms that ensure the integrity and readability
of electronic records, after an extended period
As the FTA may verify the accounting and business records of past years, businesses
should be able to produce, upon the FTA’s request, a FAF containing accounting
information, not only for the current year, but also for past years. Therefore, the
accounting software should have archival capabilities to ensure the integrity and
readability of detailed and original electronic records after an extended period. There
should also be a restoration mechanism for users to restore the archived data and
verify that the restoration process is complete.
To summarize, the tax accounting software must comply with the following minimum
non-functional requirements:
S. No. Requirements
1 System should ensure reliability of processed data
2 System should have industry standard password security controls
3 System should correct errors in transactions
4 System should ensure integrity of the information
5 System should prevent concurrent file update
6 System should notify users of relevant outputs as applicable
7 System should capture audit trails and include details such as
 date of modifications
 person making modification
 details of previous entry
 details of current entry
8 System should not allow automatic purging of a customer’s data
9 System should be capable of supporting data archival and backup
10 System should allow setup of hierarchy of users
11 System should allow creation of multiple user profiles with different
access rights

12 System should have the capability to generate configured reports
on the following basis:
 weekly
 monthly
 quarterly
 annually
13 System should allow generation of ad hoc reports
14 System should ensure reports are as per agreed format

4. FTA Audit File
The FTA will audit businesses at its discretion to ensure that businesses are making
accurate and timely tax declarations. As part of the FTA audit process, it is common
for the FTA to request certain accounting information from businesses in order to verify
the information submitted in their tax declarations. For businesses using manual
records, the process of producing the information required by the FTA can be time-
consuming; therefore, it is imperative that all tax declarations are conducted
circumspectly, in order to avoid errors.
The FTA has designed the FAF format and content, taking the commonly requested
accounting information from businesses during an FTA audit into major consideration.
The FAF is a standard file that captures such information and can be produced
automatically by the tax accounting software. Businesses that use tax accounting
software should be able to generate the FAF, and will find it quicker and easier to
respond to the FTA’s requests for information.
To summarize, a tax accounting software facilitates the following:
 a reduction of compliance costs for businesses
 a reduction of administrative costs for the FTA
 the enhancement of the outcomes of audits of businesses carried out by the
FTA
 the provision of a platform to make it easier for the FTA to co-operate in areas
such as joint audits.

5. Generation and Filing of VAT Returns
One of the FTA’s requirements is for the tax accounting software to automatically
generate a VAT return file as per the FTA format, and allow businesses to use this file
to fill in the returns form on the FTA e-tax portal, i.e., the Integrated Tax Administration
System (ITAS).
Involvement from both FTA system and tax accounting software vendors is required
to enable this feature.
It is important to note that the system should have capability to generate the VAT
return file in both excel (.xlsx) and .xml formats. For the return file format, please refer
to the relevant Appendix in this document. The file should also contain the following
details, which will serve the purpose of credentials:
 Tax Registration Number - a unique number which will be assigned to the
vendor by the FTA at the time of certification and registration,
 Company Name - tax accounting software vendor name,
 Tax Accounting Software (TAS) name,
 Tax Accounting Software (TAS) version number;
 Tax Registration Number (TRN) for which the VAT return is generated
Please see below descriptions of the processes and expectations from both the
systems (FTA system and tax accounting software) to enable this feature.
Options for Implementation of Generation of Tax Returns & Automatic Filing of

Returns:
We envisage two options by which businesses using certified tax accounting software
can file their tax returns automatically on the e-tax portal.
The step-wise description of each option is provided below.
Option 1: Manual upload of tax return file onto FTA’s e-Tax portal
1. Using the certified tax accounting software, every business representative should
be able to generate the encrypted VAT return file.
2. The VAT return file should contain the credentials as defined above for
authentication of the file.
3. The e-tax portal will have an option to allow taxpayers to upload their encrypted
VAT returns for a particular TRN.
4. The data from the uploaded file will lie in the ITAS staging area.

5. The e-tax portal will have a button to ‘Auto Fill VAT Return’ to auto-populate the
fields on the VAT return form from the VAT return file.
6. Once this button is clicked by the business representative, the ITAS will
authenticate if the uploaded file has been created by a certified tax accounting
software using the credentials mentioned above.
7. If the file is authenticated, the data from the staging area will be automatically
filled into the VAT return form.
8. If the file is not authenticated, an appropriate error message will be displayed to
the business representative to contact their tax accounting software vendor and
ensure that they are using a certified TAS.
9. The ITAS database will have a flag to determine whether the VAT return form has
been filled in by means of manual typing or auto-population by using a certified
VAT return file.
10. The business representative can then fill in other details required as part of the
VAT return form and submit the same on the e-tax portal.
Option 2: Direct upload of VAT return file from certified tax accounting software
onto FTA’s e-tax portal.
1. Using the certified tax accounting software, every business representative should
be able to generate the encrypted VAT return file, which should automatically get
uploaded in ITAS through the steps mentioned below.
2. The encrypted VAT return file should contain the credentials as defined above for
authentication of the file.
3. Once the encrypted VAT return file is generated, TAS will call the ITAS API to
upload this file in the ITAS staging area.
4. ITAS will scan the file from the staging area to ensure it is generated using a
certified tax accounting software, verify that the format is as per FTA
requirements, and has the correct TRN.
5. If the VAT return file is found to be not as per the required format, from a non-
certified vendor or having an incorrect TRN, a notification of failure will be sent to
the business representative.
6. If the checks specified in above steps are successful, ITAS will attach the file to
the respective TRN.
7. Once the business representative logs in to the e-tax portal, the file will be
available for the specific TRN.
8. The e-tax portal will have a button to ‘Auto Fill VAT Return’ to auto-populate the
fields on the VAT return form from the VAT return file.
9. Data from the staging area will be automatically filled into the VAT return form.

The advantage of the second option is that there are no manual interventions.
However, it might take more effort from TAS and FTA System to implement the
changes.
Currently the tax accounting software should have the capability to generate the non-
editable tax return files in the required format as mentioned above. The integration
(option 2) is not an immediate need and will be informed to the vendors when the
integration will be required.
6. Contact Information
For any enquiries or clarification on this software guide, please contact us at
info_tas@tax.gov.ae or 600 599 994.
7. Conclusion
Tax accounting software is a useful tool to help businesses keep important and useful
accounting records. Software vendors can add value by designing their tax accounting
software to be in compliance with this guide, thereby helping businesses to comply
more easily with their tax obligations and record keeping.

8. Appendix 1 – Key Data Elements to be
present in FTA VAT Audit File (“FAF”)
1. Company Information
Taxable Person Name (English)
Taxable Person Name (Arabic)
TRN Tax Registration Number
Tax Agency Name
TAN
Tax Agent Name
TAAN
2. Master Files
Supplier File
Name
GL/ID Internal identifier
Location of Supplier (Country or Location of supplier offices
Emirate) transaction with company
TRN If applicable
Reverse charges If applicable
Customer File
Name
Location of Customer (Country or Indicator for zero rating/out of scope
Emirate)
TRN If applicable
For Tax Codes, please check Appendices 3 & 4
3. Source Documents
Purchase Invoices / Imports / Credit Notes

GL/ID
Invoice No.
Permit No.
Invoice Date Transaction Date
Transaction ID Could be document filing reference
Line No.
Debit Amount In actual currency
Credit Amount In actual currency
Debit Amount Converted to AED
Credit Amount Converted to AED
VAT Amount In actual currency

VAT Amount Converted to AED
Sales Invoices / Credit Notes Issued to Customers

GL/ID Customer ID
Invoice No.
Line No.
Payments
Transaction Date Payment Date
General Ledger
Source type
Account receivable (AR)
AR - Cancel Credit Notes
Accounts Payable (AP)
AP - Cancel Credit Notes
Cash Book Entries
Journal Entries
Customer GL/ID
Supplier GL/ID
Source Document ID
Product File
For each product/services proved by the business records of the following
Product / Service Reference
Description of the Goods/Services
VAT Code VAT Tax Code for the
product/service
VAT Rounding
If VAT rounding is used in the accounting system, this should be done using
simple arithmetic rules. A comment stating that the rounding used in the
systems complies with this requirement should be made below.

A sample of the VAT FAF is attached below. Please note this should be used only for
reference purpose:

9. Appendix 2 – Key Data Elements to be
present in FTA Excise Tax Audit File (“FAF”)
1. Company Information
Taxable Person Name (English)

Taxable Person Name (Arabic)
TRN Tax Registration Number
Tax Agency Name
TAN
Tax Agent Name
TAAN
2. Master Files
Supplier File
Name
Location of Supplier (Country / Location of supplier offices
Emirate) transaction with company
TIN/TRN If applicable
Reverse charges If applicable
Customer File
Name
GL/ID Internal customer identifier
Location of Customer Indicator for zero rating/out of scope
TIN/TRN If applicable
For Tax Codes, please check Appendices 3 & 4
3. Source Documents
Purchase Invoices / Imports / Credit Notes

GL/ID
Invoice No.
Permit No.
Line No.

Excise Tax Amount In actual currency
Excise Tax Amount Converted to AED
Sales Invoices / Credit Notes Issued to Customers

GL/ID
Invoice No.
Line No.
Payments
Transaction Date Payment Date
General Ledger
Source type
Account receivable (AR)
AR - Cancel Credit Notes
Accounts Payable (AP)
AP - Cancel Credit Notes
Cash Book Entries
Journal Entries
Customer GL/ID
Supplier GL/ID
Source Document ID
Product File
For each product/services provided by the business records of the following
Product / Service Reference
Description of the Goods/Services
Excise Tax Code Excise Tax Code for the
product/service
Stock File
For each designated zone (warehouse), records of:

Designated Zone (Warehouse)
identifier
Open stock balances when Excise
law implemented
Product code SKU level or equivalent
Excise rate applied Per Product file
Stock Movement
Transaction type Transfer/sale/incorporated into other
excise goods
Details of movement
Transfer license reference
Date of transaction
Tax payment date
Duty status of stock Duty paid/unpaid
Stock adjustments Write offs, losses etc.
Physical location of the goods
Excise Tax Rounding

If Excise Tax rounding is used in the accounting system, this should be done
using simple arithmetic rules. A comment stating that the rounding used in
the system complies with this requirement should be made

10. Appendix 3 – Types of VAT Supplies and
Purchases
This Appendix explains the different type of VAT supplies and purchases that software
developers should be aware of in designing their accounting software.
Type of Supplies
For VAT return filing purposes, the supply of goods and services can be classified as
one of the following six types of supplies:
 Standard-rated supplies;
 Supplies subject to reverse charge;
 Zero-rated supplies;
 Exempt supplies;
 Intra GCC supplies; and,
 Amendments to output tax.
The different types of supplies are explained below:
Standard-rated supplies
Type of supply Tax Percentage Description

(VAT rate)
Standard rated 5% Local supply of goods and
services
Tax code description Tax type Example of tax code
Value Added Tax VAT SR
A VAT registered supplier must charge and account for VAT at the prevailing
rate (currently 5%) on all local supplies of goods and services unless the supply
qualifies for zero rating, exemption or falls outside the scope of VAT. In addition,
an importer of goods is required to account for VAT on the purchase of goods
imported into the territory. For example, a UAE based company supplies goods
to a customer who is based in the UAE. VAT collected from the customer is
called output tax and must be reported in the VAT return of the UAE supplier.
Supplies subject to reverse charge

(VAT rate)

Supplies subject to 5% Import of goods and services
reverse charge by registered recipient
Value Added Tax VAT RC
Generally, VAT registered business must account for VAT on the goods and
services imported from overseas that would not be exempt if supplied in the
UAE and at the same tax period, reclaim the VAT as an input tax such that no
extra tax is payable/reclaimable for the transaction. There are a few
exceptions to this provision as provided in the law, e.g. when the registered
business brings Goods into the UAE with a final destination of another GCC
country, the importer must make the VAT payment upon import.
Zero-rated supplies

(VAT rate)
Zero rated 0% Supplies involving goods for
export or provision of exported
services
Value Added Tax VAT ZR
A VAT registered supplier can zero rate (i.e. charge VAT at 0%) on the supply
of goods and services which fall within the legislation. Zero rating is currently
allowed in respect of exported goods, services supplied outside the territory of
the UAE, international transportation services and a limited number of other
goods and services. The value of zero rated supplies must be reported in the
VAT return.
Exempt supplies

(VAT rate)
Exempt NA Specific categories of supply
are exempt from VAT.

Exempt VAT EX
There are a limited number of goods and services which are exempt from VAT.
The main items being financial services, residential buildings, bare land and
local passenger transport. The value of exempt supplies must be reported in
the VAT return.
Intra GCC supplies

(VAT rate)
Intra GCC NA Supplies of goods and
services to registered
customers in other GCC
implementing states
Intra GCC VAT IG
A supplier registered in the UAE for VAT purposes is not required to account
for VAT for the supply of goods and services to recipients that is registered in
other GCC implementation states whereby the place of supply is considered to
be in the other GCC implementing state.

Amendments to output tax

(VAT rate)
Amendments to output NA Any amendments or
tax corrections due to Output tax
errors from a previous VAT
return and where the tax
amount of correction is not
more than 10,000 AED.
Amendments VAT OA
If a Taxable Person becomes aware that a previous VAT Return submitted is
incorrect, resulting in a calculation of payable tax less than required by no more
than 10,000 AED, the Taxable Person is allowed to correct the error in the tax
period where the errors has been discovered, as a simplified measure to make
a voluntary disclosure with the FTA.

Types of Purchases
For VAT purposes, the purchase of goods and services can be classified as one of the
following three types of purchases:
 Standard-rated purchases;
 Supplies subject to reverse charge; and
 Amendments to input tax.
The different types of purchases are explained below:
Standard-Rated
(VAT rate)
Standard rated 5% Purchases from VAT
registered suppliers that are
subject to VAT at 5%
Value Added Tax VAT SR
Standard rated purchases refer to all goods and services purchased for
business purposes from VAT registered businesses that are subject to VAT at
the prevailing standard rate (currently 5%). The VAT incurred is known as input
tax. The value of purchases must be reported in the VAT return.
Supplies subject to reverse charge

(VAT rate)
Supplies subject to 5% Import of goods and services
reverse charge by registered recipient
Value Added Tax VAT RC
Generally, VAT registered business must account for VAT on the goods and
services imported from overseas that would not be exempt if supplied in the
UAE and at the same tax period, reclaim the VAT as an input tax such that no
extra tax is payable/reclaimable for the transaction. There are a few
exceptions to this provision as provided in the law, e.g. when the registered
business brings Goods into the UAE with a final destination of another GCC
country, the importer must make the VAT payment upon import.
Amendments to input tax

(VAT rate)
Amendments to input tax NA Any amendments or
corrections due to Input tax
errors from a previous VAT
return and where the tax
amount of correction is not
more than 10,000 AED.
Amendments VAT IA
If a Taxable Person becomes aware that a previous VAT Return submitted is
incorrect, resulting in a calculation of payable tax less than required by no more
than 10,000 AED, the Taxable Person is allowed to correct the error in the tax
period where the errors has been discovered, as a simplified measure to make
a voluntary disclosure with the FTA.

11. Appendix 4 – Types of Excisable Activities
This Appendix explains the different type of activities that may have Excise Tax
implications that software developers should be aware of in designing their accounting
software.
The tax implication (as classified below) is determined based on the nature of activities
carried out by the taxable person – we do not segregate these activities from supply
and purchase since, unlike VAT, there is no input tax credit mechanism for excise.
 Taxable; and
 Deductible.
Details are explained below:
Taxable
Type of activity Tax Percentage Description

(Excise tax rate)
Taxable Tobacco and The production, importation
tobacco products – and stockpiling of excise
100% goods within the UAE
Carbonated drinks
– 50%
Energy drinks –
100%
Excise Tax ET T
Any person that conducts the following activities should be liable for Excise
Tax:-
 produces excise goods by way of business within UAE;
 imports from abroad or releases the excise goods from a designated
zone, or
 stockpiles the excise goods within UAE by way of business.

Deductible
Type of activity Tax Percentage Description

(Excise tax rate)
Deductible 50% or 100% Certain activities that result in
depending on the a change of the status of
nature of excise goods that has been
goods previously subject to tax under
situations such as using the
goods for onward production
into another excise good.
Excise Tax ET D
There are limited situations whereby a deduction is allowed, which is confined
to the following and subject to further criteria set by FTA:-
 Tax paid on Excise Goods which have been exported;
 Tax paid on Excise Goods which have been incorporated into another
Excise Good upon which Tax is, or will be due;
 Amounts paid by error.

12. Appendix 5 – FTA VAT Audit File (FAF)
1. Company Information Table
Table Header (There shall be one, and only one, row for this table)
Field Name Field Description Data Type Default Value
CompInfoStart This denotes the String [20] CompInfoStart
start of the
Company
Information Table
Table Body (There can be one row, or multiple rows, for this table)
Field Name Field Data Type Default Value
Description
TaxablePersonNameEn Name of the String[100]
taxable person in
English
TaxablePersonNameAr Name of the String[100]
taxable person in
Arabic
TRN Business’ Tax String[15]
Registration
Number
TaxAgencyName Name of the Tax String[100]
Agency in case
the filing is done
by a Tax Agency
TAN Tax Agency String [20]
Number
TaxAgentName Name of the Tax String[100]
Agent in case the
filing is done by a
Tax Agent
TAAN Tax Agent String [20]
Approval Number
PeriodStart Start of period Date 31-12-9999
covered in FAF
PeriodEnd End of period Date 31-12-9999
covering in FAF
FAFCreationDate FAF creation Date 31-12-9999
date
ProductVersion Accounting String[100]
software name
and version

FAFVersion FTA Audit File String[20] FAFv1.0.0
(FAF) version
number
Table Footer (There shall be one, and only one, row for this table)
CompInfoEnd This denotes the String[20] CompInfoEnd
end of the
Company
Information Table
2. Purchase Listing Table

PurcDataStart This denotes the String[20] PurcDataStart
start of the
Purchases Table
Table Body (There can be one row, or multiple rows, for this table, sorted by
InvoiceDate)
SupplierName Name of Supplier String[100]
SupplierTIN/TRN TIN/TRN of String[15]
supplier
InvoiceDate Date of Date 31-12-9999
Transaction
InvoiceNo InvoiceNo String[50]
PermitNo Cargo Clearance String[20]
Import Permit
Number
LineNo Number of Invoice Long 0
Line
ProductDescription Description of String[250]
Product
PurchaseValueAED Value of purchase Decimal [14,2] 0.00
excluding VAT in
Arab Emirate
Dirham
VATValueAED Value of VAT in Decimal [14,2] 0.00
Arab Emirate
Dirham
TaxCode Tax code for String[2] Refer to Appendix
lookup in tables 2

FCY Code ISO 4217 currency String[3] XXX
codes (3-letter
alphabetical code)
of foreign currency
PurchaseFCY Value of purchase Decimal [14,2] 0.00
excluding VAT in
Foreign Currency
(if applicable)
AEDFCY Value of VAT in Decimal [14,2] 0.00
Foreign Currency
(if applicable)
Description
PurcDataEnd This denotes the String[20] PurcDataEnd
end of Purchase
Listing Table
PurchaseTotalAED Sum of value of Decimal [14,2] 0.00
purchases in this
table in Arab
Emirate Dirham
VATTotalAED Sum of value of Decimal [14,2] 0.00
VAT in this table
in Arab Emirate
Dirham
TransactionCountTotal Total count of Long 0
transactions in
this table

3. Supply Listing Table
SuppDataStart This denotes the String[20] SuppDataStart
start of the Supply
Table
InvoiceDate)
Customer Name Name of Customer String[100]
CustomerTIN/TRN TIN/TRN of String[15]
customer
Transaction
Line
Product
SupplyValueAED Value of supply Decimal[14,2] 0.00
excluding VAT in
Arab Emirate
Dirham
VATValueAED Value of VAT in Decimal[14,2] 0.00
Arab Emirate
Dirham
TaxCode Tax code for String[20]
lookup in tables
Country Destination of String[50]
goods being
exported
FCYCode ISO 4217 currency String[3] Xxx
codes (3-letter
alphabetical code)
of foreign currency
SupplyFCY Value of supply Decimal[14,2] 0.00
excluding VAT in
Foreign Currency
(if applicable)
VATFCY Value of VAT in Decimal[14,2] 0.00
Foreign Currency
(if applicable)

Description
SuppDataEnd This denotes the String[20] SuppDataEnd
end of Supply
Listing Table
SupplyTotalAED Sum of value of Decimal[14,2] 0.00
supplies in this
table in Arab
Emirate Dirham
VATTotalAED Sum of value of Decimal[14,2] 0.00
VAT in this table
in Arab Emirate
Dirham
transactions in
this table

4. General Ledger Table
GLDataStart This denotes the String[20] GLDataStart
start of the
General Ledger
table
InvoiceDate)
TransactionDate Date of Payment Date 31-12-9999
AccountID GL Code for String[20]
individual account
AccountName Name of String[100]
individual GL
account
TransactionDescription Description of the String[250]
transaction
Name Name of entity String[100]
involved in
transactions
where applicable
TransactionID A unique number String[50]
that can group
related double
entries together
SourceDocumentID Source document String[50]
number to which
line relates (for
example, cheque
number, invoice
number. Credit
note number, trust
receipt number)
SourceType Refers to the type String[20]
of transaction
such as AR, AP,
Inventory Sale,
Purchases, Cash
Disbursement,
Cash Receipt,
General Journal
etc
Debit Debit Amount Decimal[14,2] 0.00
Credit Credit Amount Decimal[14,2] 0.00
Balance Balance Amount Decimal[14,2] 0.00

Description
GLDataEnd This denotes the String[20] GLDataEnd
end of General
Ledger Table
TotalDebit The total of all Decimal[14,2] 0.00
debit amounts in
this table
TotalCredit The total of all Decimal[14,2] 0.00
credit amounts in
this table
TransactionCountTotal This count of Long 0
transactions in
this table
GLTCurrency ISO 4217 String[3] AED
currency codes
(3-letter
alphabetical
code) of currency
used in General
Ledger Table
The following notes are applicable for all tables above:

 [N,n] where ‘N’ denotes the maximum length and ‘n’ denotes the number of
decimal place (if applicable) for each field. Example, 1.23 will satisfy [3,2] while
123.12 will not.
 Each field in each table must be delimited by an ASCII ‘,’ character
 As ‘,’ is used as a separator, please ensure that this character is not used in
any of the fields. Failure to abide by this may result in wrong interpretation of
data
 For data of type String, the default value will be an empty string (i.e. no
characters to be used)
 For data of type Decimal, the default value will be 0.00
 For data of type Long, the default value will be 0
 For data of type Date, the default value will be 31-12-9999 (DD-MM-YYYY)

13. Appendix 6 – FTA Excise Tax Audit File
(FAF)
1. Company Information Table
CompInfoStart This denotes the String [20] CompInfoStart
start of the
Company
Information Table
Table Body (There can be one row, or multiple rows, for this table)
Description
TaxablePersonNameEn Name of the String[100]
taxable person in
English
TaxablePersonNameAr Name of the String[100]
taxable person in
Arabic
TRN Business’ Tax String[15]
Registration
Number
TaxAgencyName Name of the Tax String[100]
Agency in case
the filing is done
by a Tax Agency
TAN Tax Agency String [20]
Number
TaxAgentName Name of the Tax String[100]
Agent in case the
filing is done by a
Tax Agent
TAAN Tax Agent String [20]
Approval Number
PeriodStart Start of period Date 31-12-9999
covered in FAF
PeriodEnd End of period Date 31-12-9999
covering in FAF
FAFCreationDate FAF creation Date 31-12-9999
date
ProductVersion Accounting String[100]
software name
and version

FAFVersion FTA Audit File String[20] FAFv1.0.0
(FAF) version
number
CompInfoEnd This denotes the String[20] CompInfoEnd
end of the
Company
Information Table
2. Purchase Listing Table

PurcDataStart This denotes the String[20] PurcDataStart
start of the
Purchases Table
InvoiceDate)
SupplierName Name of Supplier String[100]
SupplierTIN/TRN TIN/TRN of String[15]
supplier
Transaction
PermitNo Cargo Clearance String[20]
Import Permit
Number
Line
Product
PurchaseValueAED Value of purchase Decimal [14,2] 0.00
excluding Excise
Tax in Arab
Emirate Dirham
ExciseTaxValueAED Value of Excise Decimal [14,2] 0.00
Tax in Arab
Emirate Dirham
TaxCode Tax code for String[20]
lookup in tables
FCYCode ISO 4217 currency String[3] XXX
codes (3-letter

alphabetical code)
of foreign currency
PurchaseFCY Value of purchase Decimal [14,2] 0.00
excluding Excise
Tax in Foreign
Currency (if
applicable)
ExciseTaxFCY Value of Excise Decimal [14,2] 0.00
Tax in Foreign
Currency (if
applicable)
Description
PurcDataEnd This denotes the String[20] PurcDataEnd
end of Purchase
Listing Table
PurchaseTotalAED Sum of value of Decimal [14,2] 0.00
purchases in this
table in Arab
Emirate Dirham
ExciseTaxTotalAED Sum of value of Decimal [14,2] 0.00
Excise Tax in this
table in Arab
Emirate Dirham
transactions in
this table

3. Supply Listing Table
SuppDataStart This denotes the String[20] SuppDataStart
start of the Supply
Table
InvoiceDate)
Customer Name Name of String[100]
Customer
CustomerTIN/TRN TIN/TRN of String[15]
customer
Transaction
Line
Product
SupplyValueAED Value of supply Decimal[14,2] 0.00
excluding Excise
Tax in Arab
Emirate Dirham
ExciseTaxValueAED Value of Excise Decimal[14,2] 0.00
Tax in Arab
Emirate Dirham
TaxCode Tax code for String[2] Refer to Appendix
lookup in tables 1
Country Destination of String[50]
goods being
exported
FCYCode ISO 4217 String[3] Xxx
currency codes
(3-letter
alphabetical code)
of foreign
currency
SupplyFCY Value of supply Decimal[14,2] 0.00
excluding Excise
Tax in Foreign
Currency (if
applicable)

ExciseTaxFCY Value of Excise Decimal[14,2] 0.00
Tax in Foreign
Currency (if
applicable)
Description
SuppDataEnd This denotes the String[20] SuppDataEnd
end of Supply
Listing Table
SupplyTotalAED Sum of value of Decimal[14,2] 0.00
supplies in this
table in Arab
Emirate Dirham
ExciseTaxTotalAED Sum of value of Decimal[14,2] 0.00
Excise Tax in this
table in Arab
Emirate Dirham
transactions in
this table

4. General Ledger Table
GLDataStart This denotes the String[20] GLDataStart
start of the
General Ledger
table
InvoiceDate)
TransactionDate Date of Payment Date 31-12-9999
AccountID GL Code for String[20]
individual account
AccountName Name of String[100]
individual GL
account
TransactionDescription Description of the String[250]
transaction
Name Name of entity String[100]
involved in
transactions
where applicable
TransactionID A unique number String[50]
that can group
related double
entries together
SourceDocumentID Source document String[50]
number to which
line relates (for
example, cheque
number, invoice
number. Credit
note number, trust
receipt number)
SourceType Refers to the type String[20]
of transaction
such as AR, AP,
Inventory Sale,
Purchases, Cash
Disbursement,
Cash Receipt,
General Journal
etc.
Debit Debit Amount Decimal[14,2] 0.00
Credit Credit Amount Decimal[14,2] 0.00
Balance Balance Amount Decimal[14,2] 0.00

Description
GLDataEnd This denotes the String[20] GLDataEnd
end of General
Ledger Table
TotalDebit The total of all Decimal[14,2] 0.00
debit amounts in
this table
TotalCredit The total of all Decimal[14,2] 0.00
credit amounts in
this table
TransactionCountTotal This count of Long 0
transactions in
this table
GLTCurrency ISO 4217 String[3] AED
currency codes
(3-letter
alphabetical
code) of currency
used in General
Ledger Table

5. Stock File Table
SFStart This denotes the String[20] SFStart
start of the Stock
File table
InvoiceDate)
WarehouseID Record of Warehouse String[20]
Identifier
ProductCode Product Code received String[20]
when opening stock
balance upon excise tax
at SKU level or
equivalent
ExciseRate Applied excise rate per Decimal[14,2] 0.00
product file
TransactionType Description of type of String[250]
transaction including
transfer/sale/incorporated
into other excise goods
MovementDetails Description of movement String[250]
details
TransferID Transfer license String[50]
reference account
identification
TransactionDate Date of transaction Date 31-12-9999
TaxPaymentDate Date of Tax Payment Date 31-12-9999
StockDutyStatus Description of duty status String[100]
of stock regarding
payments
StockAdjustment Description of adjustment String[250]
of stocks regarding write
offs, losses, etc
GoodsLocation Physical location of the String[50]
goods

SFEnd This denotes the String[20] SFEnd
end of Stock File
Table
The following notes are applicable for all tables above:

 [N,n] where ‘N’ denotes the maximum length and ‘n’ denotes the number of
decimal place (if applicable) for each field. Example, 1.23 will satisfy [3,2] while
123.12 will not.
 Each field in each table must be delimited by an ASCII ‘,’ (comma) character
 As ‘,’ is used as a separator, please ensure that this character is not used in
any of the fields. Failure to abide by this may result in wrong interpretation of
data
 For data of type String, the default value will be an empty string (i.e. no
characters to be used)
 For data of type Decimal, the default value will be 0.00
 For data of type Long, the default value will be 0
 For data of type Date, the default value will be 31-12-9999 (DD-MM-YYYY)

14. Appendix 7 – Producing Data Required for
VAT Return Preparation
Below is a description of the common transactions that should be reported in each box
of a VAT return (please note that the examples provided are not exhaustive):
VAT Return Description Type of Supplies Applicable Tax
/ Purchases Codes
Standard rated Net outputs, output Standard-rated SR
supplies tax including credit supplies
notes thereof,
domestic sales in
Abu Dhabi/ Ajman/
Fujairah/ Ras al-
Khaimah/ Sharjah/
Umm al-Quwain
Supplies subject to Net outputs, output Supplies subject RC
the reverse charge tax including credit to the reverse
provisions notes thereof, charge
imported goods and
services from
foreign suppliers
Zero rated supplies Net outputs and Zero-rated ZR
credit notes thereof, supplies
Zero rated sales in
UAE
Supplies of goods Net outputs and Intra GCC IG
and services to credit notes thereof, supplies
registered supplies of goods or
customers in other services made to
GCC implementing registered
states customers in other
GCC implementing
states and for which
the place of supply
is considered to be
in the other GCC
implementing state
Exempt supplies Net outputs and Exempt Supplies EX
credit notes thereof,
Exempt supplies

/ Purchases Codes
Amendments or Any amendments or Amendments to OA
corrections to Output corrections due to output tax
figures errors from a
previous VAT return
and where the tax
amount of
correction is not
more than 10,000
Standard rated Net inputs, input tax Standard-rates SR
purchase including credit purchases
notes thereof,
including domestic
purchase and other
purchases for which
VAT has been paid
(including any VAT
paid in other GCC
implementing states
on expenses for
which you are
eligible to recover
the VAT paid in the
UAE, as per the
relevant UAE
legislation
provisions)
Supplies subject to Net inputs, input tax Supplies subject RC
the reverse charge including credit to the reverse
provisions notes thereof, which charge
are subject to the
reverse charge
provisions,
including imports of
goods and services
from foreign
suppliers, for the
purposes of your
business

/ Purchases Codes
Amendments or Net inputs, input tax Amendments to IA
corrections to Input including credit input tax
figures notes thereof, for
amendments or
corrections due to
errors from a
previous VAT return
and where the tax
amount of
correction is not
more than 10,000
AED.

15. Appendix 8 – VAT return format
Value Added Tax Return
Main
Form Type Prepopulated
Document Locator Prepopulated
Tax Form Filing Type Prepopulated
Submission Date Prepopulated
Taxable Person details

TRN Prepopulated
Taxable Person Name (English) Prepopulated
Taxable Person Name (Arabic) Prepopulated
Taxable Person Address Prepopulated
Tax Agency Name Prepopulated
TAN Prepopulated
Tax Agent Name Prepopulated
TAAN Prepopulated
VAT Return Period
Page 47 FTA Target Operating Model

VAT Return Period
e.g. Feb
2018 (or
month of
Tax Year effective date
of
registration) -
Jan 2019
VAT Return Period Reference Number e.g. 01 –

2019
VAT on Sales and all other Outputs

VAT
Amount Adjustment
Amount ToolTip
(AED) (AED)
(AED)
Amount (AED): Please enter all amounts relating
to Sales and other Outputs net of VAT.
Adjustment (AED): Please use this column if there
is a change in circumstances (e.g. goods/services
sold in a previous tax period that were returned in
the current period, adjustment for bad debts,
credit notes or other). All amounts provided
should be VAT amounts and can be positive or
negative amounts.
Enter supplies of goods and services made within
the period subject to the standard rate of VAT and
which are considered to take place in the Emirate
1a Standard rated supplies in Abu Dhabi of Abu Dhabi.
1b Standard rated supplies in Dubai of Dubai.
1c Standard rated supplies in Sharjah of Sharjah.

1d Standard rated supplies in Ajman of Ajman.
1e Standard rated supplies in Umm Al Quwain of Umm Al Quwain.
1f Standard rated supplies in Ras Al Khaimah of Ras Al Khaimah.
1g Standard rated supplies in Fujairah of Fujairah.
Enter supplies of goods and services received,
which are subject to the reverse charge
provisions, including imports of services from
foreign suppliers on which you are required to
account for VAT. Please disregard any imports of
goods through customs which are subject to the
Supplies subject to the reverse charge reverse charge and for which the import VAT is
2 provisions reported separately in box 6 below.
Enter supplies, which are subject to the zero rate.
Do not include in this box sales (supplies) made
N/A N/A to registered customers in other GCC
3 Zero rated supplies implementing states
Enter supplies made to customers registered for
VAT in other GCC implementing states and for
Supplies of goods and services to registered N/A N/A which the place of supply is the other GCC
4 customers in other GCC implementing states implementing state
Enter exempt supplies (e.g. specified financial
N/A N/A services, bare land, local passenger transport,
5 Exempt supplies and specified residential buildings)
This includes the import VAT imposed on import
of goods into the UAE. It is populated based on
N/A the amounts declared by you in your customs
6 Import VAT accounted through UAE customs import declarations.
Enter any corrections for errors from a previous
N/A VAT return. Please consider if you are required to
7 Amendments or corrections to Output figures make a voluntary disclosure instead.
A1=sum of A2=sum of
8 Totals column column

VAT on Expenses and all other Inputs
Amount (AED): Please enter the total value of all
inputs net of VAT, for which you would like to
Recoverable recover input tax.
Amount Adjustments
VAT amount Recoverable VAT amount (AED): Please enter
(AED) (AED) the amounts of recoverable VAT only (not total
(AED) incurred VAT, in case your ability to recover input
tax is restricted).
Enter all expenses subject to the standard rate of
VAT for which you would like to recover input tax.
This should also include any VAT paid in other
GCC implementing states on expenses if you are
9 Standard rated expenses eligible to recover that VAT in the UAE (refer to
the relevant UAE legislation provisions). With
respect to the VAT amount, please enter the
amounts of recoverable VAT only, in case your
ability to recover input tax is restricted.
Enter any expenses which were subject to the
reverse charge for which you would like to recover
input tax. With respect to the VAT amount, please
enter the amounts of recoverable VAT only, in
Supplies subject to the reverse charge case your ability to recover input tax is restricted.
10 provisions
Enter any corrections for errors from a previous
N/A VAT return. Please consider if you are required to
11 Amendments or corrections to Input figures make a voluntary disclosure instead.
A3=sum of A4=sum of
12 Totals column column
Net VAT due

12 Total value of due tax for the period A5=A1+A2
13 Total value of recoverable tax for the period A6=A3+A4
14 Net VAT due(or reclaimed) for the period A7=A5 - A6
Select Yes if you would wish to request for this
If a VAT refund is due, do you wish to request Y/N VAT refund to be paid to you subject to the
15 that the refund is paid to you? provisions of the Tax legislation

Additional Reporting Requirements
Profit Margin Scheme

Select Yes if you are using the Profit Margin
Are you using the profit margin scheme? Y/N Scheme in this period
Goods transferred to GCC implementing states:

Goods transferred to GCC Amount VAT amount Adjustments Use this section only if you have imported goods
into the UAE, and the final destination of the
implementing states (AED) (AED) (AED) goods when entering the UAE, was another GCC
implementing state.
Enter the goods imported into the UAE where

their final destination on entering the UAE has
been the Kingdom of Bahrain. If you enter any
Imported goods transferred to the Kingdom of amounts in this box you should have already paid
Bahrain for this import VAT at UAE customs.
been the State of Kuwait. If you enter any
Imported goods transferred to the State of amounts in this box you should have already paid
Kuwait for this import VAT at UAE customs.
been the Sultanate of Oman. If you enter any
Imported goods transferred to the Sultanate of amounts in this box you should have already paid
Oman for this import VAT at UAE customs.
been the State of Qatar. If you enter any amounts
in this box you should have already paid for this
Imported goods transferred to the State of Qatar import VAT at UAE customs.
been the Kingdom of Saudi Arabia. If you enter
Imported goods transferred to the Kingdom of any amounts in this box you should have already
Saudi Arabia paid for this import VAT at UAE customs.

Select Yes if you are an agent who acts on behalf
Are you an agent who has paid import VAT on of another person (and where the person is not
Y/N registered for VAT purposes in the UAE) for the
behalf of another person?
purposes of importing goods into the UAE
VAT paid on personal imports via Amount VAT amount Adjustments

Agents (AED) (AED) (AED)
Enter any imports of goods into the UAE on behalf
of a non registrered person where the goods have
then been transferred to the Kingdom of Bahrain.
Imported goods transferred to the Kingdom of If you enter any amounts in this box you must also
Bahrain include these amounts in your box 1 entry.
then been transferred to the State of Kuwait. If
Imported goods transferred to the State of you enter any amounts in this box you must also
Kuwait include these amounts in your box 1 entry.
then been transferred to the Sultanate of Oman. If
Imported goods transferred to the Sultanate of you enter any amounts in this box you must also
Oman include these amounts in your box 1 entry.
then been transferred to the State of Qatar. If you
enter any amounts in this box you must also
Imported goods transferred to the State of Qatar include these amounts in your box 1 entry.
then been transferred to the Kingdom of Saudi
Arabia. If you enter any amounts in this box you
Imported goods transferred to the Kingdom of must also include these amounts in your box 1
Saudi Arabia entry.

Transfer of own goods to other GCC
implementing states: complete this section if you
have moved your own goods (i.e. goods which
form part of your assets) for the purposes of your
business from the UAE to another GCC
implementing state. Please disregard any such
Transportation of own goods to other Amount VAT amount Adjustments movements where the goods are used temporarily
in the other GCC implementing state within the
GCC states (AED) (AED) (AED) conditions of a temporary admission, as defined in
the Unified Customs Law, or where the
transportation of the goods is done as part of
another taxable supply in the other GCC
implementing state.
If you enter any amounts in this section you must
also include these amounts in your box 1 entry.
Enter any transfers of your own goods from the
UAE to the Kingdom of Bahrain
Goods transported to the Kingdom of Bahrain
UAE to the State of Kuwait
Goods transported to the State of Kuwait
UAE to the Sultanate of Oman
Goods transported to the Sultanate of Oman
UAE to the State of Qatar
Goods transported to the State of Qatar
Goods transported to the Kingdom of Saudi Enter any transfers of your own goods from the
UAE to the Kingdom of Saudi Arabia
Arabia
Recoverable VAT paid in other GCC

implementing states: Use this section only if you
have paid VAT in another GCC implementing
state and you are eligible to recover this VAT in
the UAE. Examples of this may include import of
Recoverable VAT paid in other GCC Amount VAT amount Adjustments goods into the UAE through another GCC
(AED) (AED) (AED) implementing state where the intended final
implementing states destination of those goods was the UAE at the
time of import; or where you have acquired goods
in another GCC implementing state which were
then moved into the UAE. Please refer to the
VAT legislation for conditions of eligibility.

With respect to the VAT amount, please enter the
amounts of recoverable VAT only, in case your
ability to recover input tax is restricted.
Enter any recoverable VAT paid in the Kingdom of

Bahrain. If you enter any amounts in this box you
Recoverable VAT paid in the Kingdom of must also include these amounts in your box 9
Bahrain entries.
Enter any recoverable VAT paid in the State of
Kuwait. If you enter any amounts in this box you
must also include these amounts in your box 9
Recoverable VAT paid in the State of Kuwait entries.
Enter any recoverable VAT paid in the Sultanate
of Oman. If you enter any amounts in this box you
Recoverable VAT paid in the Sultanate of Oman entries.
Enter any recoverable VAT paid in the State of
Qatar. If you enter any amounts in this box you
Recoverable VAT paid in the State of Qatar entries.
Enter any recoverable VAT paid in the Kingdom of
Saudi Arabia. If you enter any amounts in this box
Recoverable VAT paid in the Kingdom of Saudi you must also include these amounts in your box
Arabia 9 entries.
Tax Refunds for Tourists Scheme Provided: Use

Tax Refunds for Tourists Scheme Amount VAT amount Adjustments this section only if you are a retailer and have
provided VAT refunds to tourists as per the
provided (AED) (AED) (AED) Tourists Scheme. Please provide all amounts per
Emirate where the refund was provided.
Enter any amounts of VAT refunds paid under the
Scheme on sales in the Emirate of Abu Dhabi. If
you enter any amounts in this box you must also
Tax Refunds for Tourists Scheme paid in Abu include these amounts as negative in your box 1a
Dhabi entries.
Scheme on sales in the Emirate of Dubai. If you
include these amounts as negative in your box 1b
Tax Refunds for Tourists Scheme paid in Dubai entries.
Tax Refunds for Tourists Scheme paid in Scheme on sales in the Emirate of Sharjah. If you
Sharjah enter any amounts in this box you must also

include these amounts as negative in your box 1c
entries.

Scheme on sales in the Emirate of Ajman. If you
include these amounts as negative in your box 1d
Tax Refunds for Tourists Scheme paid in Ajman entries.
Scheme on sales in the Emirate of Umm Al
Quwain. If you enter any amounts in this box you
Tax Refunds for Tourists Scheme paid in Umm must also include these amounts as negative in
Al Quwain your box 1e entries.
Scheme on sales in the Emirate of Ras Al
Khaimah. If you enter any amounts in this box you
Tax Refunds for Tourists Scheme paid in Ras Al must also include these amounts as negative in
Khaimah your box 1f entries.
Scheme on sales in the Emirate of Fujairah. If you
Tax Refunds for Tourists Scheme paid in include these amounts as negative in your box 1g
Fujairah entries.
Declaration
I declare that all information provided is true,
accurate and complete to the best of my
knowledge and belief. tick-box
Online User name (English)
Online User name (Arabic)
Declarant name (English)
Declarant name (Arabic)
Emirates Identity Card number
Passport number (if no Emirates ID available)

Declarant mobile country code
Declarant mobile number
e-mail address
Submission Date

16. Appendix 8 – Excise Tax return
Main
Form Type
Document Locator
Tax Form Filing Type
Submission Date
Taxable Person details

Tax Agent Name
Tax Agent Accreditation
Number (TAAN)
Tax Agency Name
Tax Agency Number (TAN)
Tax Registration Number
(TRN)
Name of Business (English)
Name of Business (Arabic)
Taxable Person Address
Building name and number
Street
Area
City
Emirate
Country
Excise Tax Return Period

Excise Tax Return Period
Calculation of Excise Tax due
Value of Excise
Excise Tax due (AED)
Goods (AED)
Importation of Excise
Goods from outside of UAE
Production of Excise Goods
within UAE
Release of Excise Goods
from a Designated Zone
Stockpiling of Excise Goods
in the UAE, including 0 0
A) Tobacco and tobacco
products
B) Carbonated drinks
C)Energy drinks
Total value of Excise

A (+ or -)
Goods/ Due Tax
Value of Tax declared in
error and identified in the B (+ or -)
same month
Value of Deductible Tax
for Tax paid in error
C (-)
(which is below AED
10,000)

Value of other Deductible
D (-)
Tax
Value of under declared

Tax for the previous tax
E(+)
period (which is above
AED 10,000)
Total value of Payable Tax
F=sum(A:F)
(Excess Refundable Tax)
Declaration
I declare that all information
provided is true, accurate
and complete to the best of
my knowledge and belief. tick-box
Are you, as the Online
User, making this
declaration? Y/N
Online User name (English)
Online User name (Arabic)
Declarant name (English)
Declarant name (Arabic)
Emirates Identity Card
number
Passport number (if no

Emirates ID available)
Declarant mobile country

code

Declarant mobile number
Email address
Submission Date

Glossary
1. Audit: “An official inspection of an organization's accounts, typically by an independent body.”
2. Organisation for Economic Cooperation and Development (OECD): “An intergovernmental economic organisation with 35
member countries, founded in 1960 to stimulate economic progress and world trade. It is a forum of countries describing
themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seeking
answers to common problems, identify good practices and coordinate domestic and international policies of its members”
3. Person: natural or legal person.
4. Software Vendors: Those companies that provide the tax accounting software
5. Tax Accounting Software: “Accounting software is an invaluable resource for modern business. Essentially, it is a ‘set of
procedures that includes internal mechanisms of control, books of accounts, and plans/charts of accounts that are all used for
administering, recording, and reporting financial transactions.” Tax accounting software therefore allows for the automation of
all tax-based responsibilities, i.e. keeping track of records, payments, file returns, etc., saving businesses time and money.
6. Tax Registration Number: a unique number issued by the FTA for each Person registered for Tax purposes.
7. Reverse charges: a mechanism by which the Taxable Customer is obligated to pay the Tax due on behalf of the Supplier.
8. Deemed supplies: Anything considered as a supply and treated as a Taxable Supply according to the instances stipulated in
the VAT law.
9. Disallowed expenses: expenses paid for the purchase of taxable supply of goods/services whereby the associated input tax is
not recoverable
10. Credit notes: A written or electronic document in which the occurrence of any amendment to a Taxable Supply that reduces or
cancels the same is recorded and the details pertaining to it.
11. AR – cancel: reversal of account receivable
12. AP – cancel: reversal of account receivable

13. Cash book entries: journal entries related to cash receipts and payments including bank deposits and withdrawals
14. Journal entries: the record of financial data pertaining to business transactions in a journal such that the debits equals to the
credits.
15. VAT rounding – a specified method of calculation and stating the total amount to be paid if the Tax is less than one fils of a
UAE Dirham
16. Deductible: The Excise Tax that has been paid, or considered as have been paid, by a Taxable Person.
17. Duty status of the stock: whether the stock stored within the warehouse is under duty suspension regime
18. Duty paid/unpaid: whether customs duty has already been paid for the stock stored within the warehouse
19. Physical location of the goods: where the goods are physically stored

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Requirements Document for Tax

Page 1 FTA Target Operating Model

2. Importance of Tax Accounting Software to

2.1. What is Accounting Software?

2.2. What is a Tax Accounting Software?

Page 2 Tax Accounting Software

Page 3 Tax Accounting Software

3.1. General Principles

Page 4 Tax Accounting Software

 Credit Note / Debit Note

3.1.1. Facility to generate necessary data elements to prepare VAT

Page 5 Tax Accounting Software

3.2. Non-Functional Requirements

Page 6 Tax Accounting Software

Page 7 Tax Accounting Software

3.2.3. Software vendor must create adequate audit trails to assist

Page 8 Tax Accounting Software

Page 9 Tax Accounting Software

Page 10 Tax Accounting Software

Options for Implementation of Generation of Tax Returns & Automatic Filing of

Page 11 Tax Accounting Software

Page 12 Tax Accounting Software

Page 13 Tax Accounting Software

For Tax Codes, please check Appendices 3 & 4

Purchase Invoices / Imports / Credit Notes

Page 14 Tax Accounting Software

Sales Invoices / Credit Notes Issued to Customers

Page 15 Tax Accounting Software

Page 16 Tax Accounting Software

Taxable Person Name (English)

For Tax Codes, please check Appendices 3 & 4

Purchase Invoices / Imports / Credit Notes

Page 17 Tax Accounting Software

Sales Invoices / Credit Notes Issued to Customers

Page 18 Tax Accounting Software

Excise Tax Rounding

Page 19 Tax Accounting Software

Type of supply Tax Percentage Description

Supplies subject to reverse charge

Type of supply Tax Percentage Description

Page 20 Tax Accounting Software

Type of supply Tax Percentage Description

Type of supply Tax Percentage Description

Page 21 Tax Accounting Software

Intra GCC supplies

Type of supply Tax Percentage Description

Page 22 Tax Accounting Software

Type of supply Tax Percentage Description

Page 23 Tax Accounting Software

Supplies subject to reverse charge

Type of supply Tax Percentage Description

Amendments to input tax

Page 24 Tax Accounting Software

Page 25 Tax Accounting Software

Type of activity Tax Percentage Description

Page 26 Tax Accounting Software

Type of activity Tax Percentage Description

Page 27 Tax Accounting Software

Page 28 Tax Accounting Software