UAE VAT in Zeyto: study sheet

In the print dialog choose A4 and turn off “Headers and footers”. To keep a PDF, pick “Save as PDF” as the printer. The sheet prints landscape, in columns.

Zeyto Academy · Advanced · Module 6

UAE VAT in Zeyto

How UAE VAT works, tax codes, tax invoices, the VAT 201 return box by box, deadlines and records, and an honest look at e-invoicing.

You will be able to

Explain 5% standard-rated, zero-rated, exempt and out-of-scope supplies and the FTA registration thresholds
Set up and check tax codes, TRNs and tax invoices in Zeyto
Record input VAT, reverse charge and import VAT correctly
Work out a VAT 201 return box by box and read Zeyto's Return Worksheet
State the filing deadline, record-keeping basics and what is publicly confirmed about UAE e-invoicing

How UAE VAT works

VAT is collected in stages; a registered business pays the FTA only output VAT minus input VAT.
The standard rate is 5%; VAT inside a VAT-inclusive price is price x 5 / 105.
Zero-rated, exempt and out-of-scope supplies are different and are reported differently.
Zeyto calculates VAT per line from the line's tax code.

Registration thresholds and your TRN

Mandatory registration is AED 375,000 of taxable supplies and imports; voluntary is AED 187,500 (FTA).
A TRN is 15 digits and identifies a taxable person on tax invoices.
Zeyto stores your TRN in Company Profile and each party's TRN on its record.
Zeyto checks the length of a TRN, not whether it belongs to the party.

Tax invoices, simplified invoices and credit notes

A tax invoice must be issued within 14 days of the date of supply (VAT law).
Under the earlier FTA rules simplified invoices were allowed for unregistered buyers, or registered buyers at AED 10,000 or less; e-invoicing reform is ending this option.
Errors are fixed with a tax credit note or an additional tax invoice.
In Zeyto, a Sales Invoice is the tax invoice and a Sales Return is the tax credit note.

Tax codes: per item, per line and per document

Five codes cover the UAE treatments: SR5, ZR, EX, RCM and OOS, each mapped to VAT 201 boxes.
A line starts on its item's code; you change the line, not the customer, to zero-rate an export.
Reverse charge is the exception: Zeyto switches the line when category, TRN and declaration checks pass.
Lines without a tax code appear in no box and block the filing lock.

Input VAT, expenses and reverse charge

Claiming input VAT needs a business purpose, a registered supplier and a valid tax invoice.
Reverse charge means the buyer accounts for the VAT: output in Box 3 and input in Box 10.
Import VAT on customs declarations goes to Box 6 (Box 7 for corrections) and is recovered in Box 10.
In Zeyto, self-accounting needs the RCM voucher; coding a purchase invoice RCM alone does not declare the VAT.

The VAT 201 return, box by box

Boxes 1 to 8 are output, 9 to 11 are input, and 12 to 14 give the net amount.
Net VAT payable = total output VAT minus total input VAT.
Reverse charge and import VAT appear on both sides and cancel for a fully taxable business.
Zeyto's Return Worksheet gives the figures; you file on the FTA portal.

Filing periods, deadlines and record keeping

The return and the payment are due by the 28th day after the period ends, or the next business day.
Quarterly is standard below AED 150 million turnover; the FTA assigns your cycle.
Mark as Filed & Lock Period cannot be undone in Zeyto; press it after the portal accepts the return.
Keep VAT records at least five years (UAE VAT rules), and longer where other rules apply.

UAE e-invoicing: what is confirmed and what Zeyto does

The MoF timetable is phased: AED 50 million or more from 1 January 2027, others from 1 July 2027, government from 1 October 2027.
Issuers and recipients must use an Accredited Service Provider; check the MoF list.
Zeyto builds and stores draft e-invoice files but has no live provider connection and is not an ASP.
Do not treat Zeyto's e-invoicing screen as compliance.

How UAE VAT works: key table

Treatment	VAT charged	Where it is reported (VAT 201)	Examples given in the FTA VAT Returns User Guide
Standard-rated	5%	Box 1 (by emirate)	Most goods and services
Zero-rated	0%, but still reported	Box 4	Exports of goods and services outside the UAE, certain education and healthcare, investment precious metals, crude oil and natural gas
Exempt	No VAT	Box 5	Certain financial services, sale or lease of residential buildings (other than zero-rated ones), bare land, local passenger transport
Out of scope	Outside UAE VAT	Not in the return	Supplies the UAE VAT law does not cover at all; ask your accountant if unsure

Registration thresholds and your TRN: key table

Type	Threshold	Notes
Mandatory registration	AED 375,000	Non-resident businesses that make taxable supplies in the UAE must register even below this figure, unless a UAE party accounts for the VAT
Voluntary registration	AED 187,500	Measured on taxable supplies, imports or taxable expenses

Tax invoices, simplified invoices and credit notes: key table

Document	Zeyto screen	What it does to VAT
Tax invoice	Sales, Sales Invoice	Records output VAT on submit; the printout is the tax invoice
Simplified tax invoice	POS, POS Terminal (receipts in POS Receipts)	Each finished sale is posted as a POS receipt, a simplified tax invoice
Tax credit note	Sales, Sales Return	Reduces the sale and the output VAT; credits the customer
Supplier's invoice (input)	Purchase, Purchase Invoice	Records input VAT you can claim
Supplier credit note	Purchase, Purchase Return	Reduces input VAT
Advance tax invoice	Accounting, Advances / Sales, Advance Tax Invoices	VAT is due when an advance is received

Tax codes: per item, per line and per document: key table

Code	Treatment	Rate	Box on a sale	Box on a purchase
SR5	Standard	5%	1	9
ZR	Zero	0%	4	none
EX	Exempt	0%	5	none
RCM	Reverse charge	5%	3	10
OOS	Out of scope	0%	none	none

The VAT 201 return, box by box: key table

Box	Source in the books	Amount	VAT
1b Dubai	Invoices 400,000 less credit notes 10,000	390,000	19,500
1c Sharjah	Invoices	100,000	5,000
3	Foreign consulting, self-accounted	20,000	1,000
4	Export sales	120,000	0
5	Exempt supply	8,000	0
6	Import declaration	60,000	3,000
Total output VAT	24,500 + 1,000 + 3,000		28,500
9	Purchases 250,000 and expenses 30,000	280,000	14,000
10	Consulting 20,000 and imports 60,000	80,000	4,000
Total input VAT	14,000 + 4,000		18,000

Filing periods, deadlines and record keeping: key table

Cycle	Quarters	Example due date
Stagger 1	Feb-Apr, May-Jul, Aug-Oct, Nov-Jan	Period ending 30 April: due 28 May
Stagger 2	Mar-May, Jun-Aug, Sep-Nov, Dec-Feb	Period ending 31 May: due 28 June
Stagger 3	Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec	Period ending 31 March: due 28 April