Prepare the UAE VAT 201 return

This page applies only to organisations whose country is the United Arab Emirates. Kluvan works the same everywhere without it.

Books gathers the VAT on your invoices, credit notes, supplier bills and expenses into the boxes of the VAT 201 return, with standard-rated sales split by emirate. Your accountant checks the figures and files the return with the Federal Tax Authority (FTA). Kluvan does not submit anything to the FTA.

Before you start

• Books must be switched on and your chart of accounts created in Set up Books.
• To change the settings and record a filing you need the Books right Set up Books and lock periods. To record the payment you need Manage banking. See roles and rights.
• Use the tax periods the FTA gave your business; Books does not assume them.

Steps

Set up the return once

1. Open Books → VAT return → Tax return settings.
2. Choose Monthly or Every three months, and enter the First filing-period month. For quarters, this is the month your quarters start, even if they cross the calendar year.
3. For each branch, choose its Emirate. A branch left on Review classification sends its sales to review.
4. If your accountant says you are a qualifying e-commerce business, tick Qualifying e-commerce: review the delivery emirate. Sales then wait for review instead of taking the branch's emirate.
5. Select Save.

Prepare each period

6. Open Books → VAT return, choose any Month of the period and select Show.
7. Read the boxes: 1 · Taxable sales by emirate (one card per emirate), 2 · Tourist scheme refunds, 3 · Purchases under reverse charge, 4 · Sales taxed at zero, 5 · Exempt sales, 6 · Imports reported by customs, 7 · Corrections to customs imports, 9 · Expenses at the standard rate and 10 · Reverse-charge input tax. The totals are 8 / 12 · Output VAT, 11 / 13 · Recoverable input VAT and 14 · Net.
8. Open a box's Journal link to see the documents behind it.
9. If a red banner asks you to review, open the entries listed and select Review classification. Choose the Type (box), the Emirate and VAT or VAT adjustment, write the Reason and select Save.
10. Under Download this page, choose CSV or Excel for your accountant.

After your accountant files

11. Type the FTA's reference in Reference, tick the confirmation box and select Record external filing.
12. When you pay, fill in Record tax payment (Date, Amount, Paying account, Reference). For a refund, use Record the refund.

Good to know

• Nothing is submitted to the FTA. These are prepared figures; your accountant must review them before you file.
• Recording the filing posts the VAT settlement and locks every month of the period. You can record it only after the period ends, with nothing waiting for review, the VAT figures matching the ledger and the Month-close checklist complete.
• No amendments yet. Filed months stay locked for tax; a late entry dated in a filed month is refused. Correct it in a later return with your accountant.
• Customs imports (boxes 6 and 7) and tourist refunds (box 2) come only from entries you book; Books does not read figures from the FTA or customs.
• Books rounds VAT on the whole document, while the FTA's practice is per line. Small rounding differences are possible: check them with your accountant.
• Payments can be partial, dated after the period and not in the future.
• See also United Arab Emirates.