Zoho Books for UAE VAT and Corporate Tax: what to set up
Zoho Books has an edition built for the UAE. Setting it up properly means your tax invoices, VAT return figures and records are right from the first transaction. Here is what we configure for UAE clients.
VAT basics in Zoho Books
- Your Tax Registration Number (TRN) on the organisation profile and on every tax invoice.
- Standard-rated (5%), zero-rated and exempt supplies set up as separate tax rates, so each is reported in the right box.
- Place of supply by emirate where your return needs it.
- Reverse charge for imports of services and goods where it applies.
Tax invoices and credit notes
Templates carry the details a UAE tax invoice needs, including your TRN, the customer's TRN where they are registered, and VAT shown per line. Arabic text can be added to templates if your customers need it.
VAT returns
Zoho Books prepares the figures for your VAT return for each tax period. We show your team how to review them and file with the Federal Tax Authority, and how to handle adjustments.
Corporate Tax readiness
UAE Corporate Tax applies to financial years starting on or after 1 June 2023, at 9% on taxable income above AED 375,000. We structure the chart of accounts so non-deductible expenses and adjustments are easy to identify at year end.
Inventory and multiple entities
Setting up the organisation, in order
- Create the organisation on the UAE edition, with your legal name, TRN and VAT registration date.
- Set the VAT return period (monthly or quarterly) to match your registration.
- Create tax rates for standard-rated, zero-rated and exempt supplies, and enable reverse charge where your business needs it.
- Fill the emirate and TRN on every customer and vendor that has one.
- Brand your tax invoice and credit note templates, adding Arabic text if your customers require it.
- Connect your bank feeds and set reconciliation rules.
Common mistakes we fix
- Zero-rated and exempt supplies set up as the same rate, which puts them in the wrong box on the return.
- Customer TRNs missing, so tax invoices for registered customers are incomplete.
- Imports of services recorded without reverse charge.
- One organisation used for a mainland company and a free-zone company that need separate books.
Corporate Tax year-end checklist
- Review entertainment and other expenses that may be only partly deductible, using the separate accounts set up for them.
- Confirm related-party transactions are tagged so they can be listed.
- Reconcile fixed assets and depreciation with your schedules.
- Export the trial balance and the supporting reports for your tax agent.
For traders and distributors we add warehouses, batches and price lists, and set up separate organisations for mainland and free-zone entities where needed.
This guide explains software setup, not tax advice. Confirm treatments with your tax agent. Talk to us about setting up Zoho Books in the UAE.