Tax Code not showing up for UAE VAT 5%

Dear Lubos,

I am using Manager version 17.12.20

I have selected the Tax Code as United Arab Emirates VAT 5% and VAT 0% as my Tax Codes. But the column displaying the tax code description does not appear, when all the line items have VAT 5% selected.

Whereas if I add another Tax Code for example United Arab Emirates VAT 0%, then it is displayed.

Could you please help me with this. Screenshots are attached below.
By law we require the Rate of Tax to displayed next to each item.

Best Regards,
Taher Nomani

Only UAE VAT 5% selected for all items:


image

When VAT 0% added the Tax Column appears:
image
image

What you have displayed is standard for Manager, it only shows columns as when required.

As in your second example where you have used two tax codes the column is displayed otherwise it is assumed that all items are of the same tax code as in your first example and the column is not required.

Do you have an official document which states that ?

For UAE Tax Invoice & Credit Note Formats,
Article 59 of the Federal Law (8) describes in detail the requirements for an invoice / credit note to be considered a Tax Invoice or Credit Note.

https://www.tax.gov.ae/pdf/Cabinet-Decision-No-52-of-2017.pdf

Best Regards,
Taher Nomani

Dear Sir,

As per UAE law and regulations posted above you can read in article 59 of Federal Law 8 it clearly states Tax Rate needs to be displayed for each line item.

Relevant Documents
https://www.tax.gov.ae/pdf/Cabinet-Decision-No-52-of-2017.pdf2

Is this possible in Manager if all the tax rates are the same ?

Best Regards,
Taher Nomani

If all goods and services on invoice are subject to the same tax, you certainly don’t have to show it multiple times. Just implying all items are subject to the same tax rate is conceiving the same information.

This is acceptable presentation everywhere in the world and UAE will be no exception.

@Taher_Nomani, the regulation actually does not say the tax rate must be shown for every line item. On page 43 of the regulation you linked to, where requirements for a tax invoice are defined, it says, “For each Good or Service, the unit price, the quantity or volume supplied, the rate of Tax and the amount payable expressed in AED.”

Showing the rate for each line item would be one way of complying. But if the entire tax invoice includes only one rate, and that rate is specified, then you have, by inclusion, specified the rate for every good or service on the tax invoice. This is what Manager does. The UAE regulations are basically identical to VAT regulations found all around the world in this respect. (I doubt they were written from scratch.)

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Dear Lubos and Tut,

Thanks for the clarification.

Best Regards,
Taher Nomani

Guide for language it’s required both Arabic and English

@irfankhatri, what is the official source for your statement that anything is required in both Arabic and English?

@irfankhatri, if you read the pdf regulations link I have posted earlier, arabic language is not mentioned as a requirement for tax invoice in article 59 of Federal Law 8. Please read through it.

As per presentations and discussions in a VAT seminar I attended, If required for any clarification or legal purpose they might request for legal translation of any documents, which has to then be provided based on that request. This legal translation can be done at any translation office (in the same way we translate marriage & educational certificates here in the UAE)

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You also have the choice in Manager of selecting Arabic as your language preference. The program is 100% translated to Arabic. (I realize this may not qualify as a legal translation under your laws.)

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Dear @irfankhatri

As per the regulation guidlines on the tax website. Please find the relevant information regarding language of documents in Article 5 of Cabinet Decision 36 and also in Article 5 of Federal Law 7

Link to PDF for Cabinet Decision 36
https://www.tax.gov.ae/pdf/Cabinet-Decision-36-of-2017-on-Executive-Regulation-on-Tax-Procedures.pdf

Screenshot of Relevant Information

Link to PDF for Federal Law 7
https://www.tax.gov.ae/pdf/Federal-Law-No-7-of-2017-on-Tax-Procedures.pdf

Screenshot of Relevant Information

Hi Taher,

Having gone through the database about the VAT 5% per line item requirement. Today I was forwarded the below FTA decree stating the requirement to calculate individual item is necessary. May I ask if you have found a solution that allows the tax % and tax amount to be calculated against each line item. The instructions of requirement came from a state owned government entity

I am still looking for a solution with themes to create the invoice in that format. I will post on the forum once I have a solution.

thanks for your reply, I presume in the interim you are manually creating the invoice as our customer has rejected the Manager invoice?

@Venture, your post did not include any decree.

Please see the attachment, kindly go through page no.5 and you will find the information what is required. I have the whole file which is in pdf, but unable to upload here

In the interim, most companies are still accepting the old invoice format and for ones that are really particular I have told my clients to create invoices in excel with the same layout.