The final account, UAE VAT points and receivables

The final account agrees the last figures with the client. Zeyto Construction & Contracting snapshots the original value, approved variations, a remeasurement adjustment, the final contract value, billed to date, deductions, retention held and released, advance received and recovered, and the balance due. The final bill then bills the remaining 100% of the balance and recovers exactly what is left of the advance.

UAE VAT points to hold on to

• Construction services supplied in the UAE are standard-rated at 5%, whatever the building. Zero-rating of the first supply of a residential building applies to the sale of the building, not to the contractor's construction services (FTA real estate guide).
• A tax invoice must be issued within 14 days of the date of supply. For construction contracts with periodic payments the date of supply is generally the earliest of the invoice, the due date on the invoice and receipt of payment; certification alone does not create it.
• There is no domestic reverse charge for construction work. Reverse charge applies to imported goods and services, and to listed domestic supplies such as metal scrap and precious metals and stones.
• A foreign design or specialist service bought from outside the UAE may fall under reverse charge. The Purchase menu has RCM Self-Accounting vouchers, and a taxable journal can record reverse-charge VAT.
• Tax invoices need the supplier's and recipient's tax details; keep the client's TRN correct on the party record.

Receivables

The Finance Hub has a Receivables tab with ageing buckets. A bill is due on its invoice date plus the contract payment terms. The Home tile Clients owe us adds unpaid progress bills of all projects and shows what is more than 30 days late. The Collection Forecast report lists open sales invoices by the week they are expected to be paid.

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Finance Hub, Receivables: ageing of the bills still owed.