UAE VAT Engine

Overview

A purpose-built UAE VAT compliance module that automates tax calculation, collection, reporting, and FTA return preparation for private schools.

Legislation	Reference	Scope
UAE VAT Law	Federal Decree-Law No. 8/2017	Primary legislation
Executive Regulations	Cabinet Decision No. 52/2017	Implementation
FTA VAT Return	Form 201	Quarterly / monthly return
E-Invoicing	PINT-AE / UBL 2.1	Mandatory Jul 2027

VAT rate structure

Category	Code	Rate	School application
Standard	STD_5	5%	Transport, uniforms, technology
Zero Rate	ZERO	0%	Qualifying institutional supplies
Exempt	EXEMPT	0%	Tuition, registration, core fees
Out of Scope	OOS	0%	Government grants

Under UAE VAT law, core educational services from licensed institutions are exempt from VAT. Ancillary services are subject to 5%.

Tax Calculation

Fee-to-tax mapping

Fee category	Tax category	Rate	Rationale
Tuition	EXEMPT	0%	Core education (Art. 46)
Registration	EXEMPT	0%	Enrollment service
Technology	EXEMPT	0%	Educational technology
Books	EXEMPT	0%	Educational materials
Transport	STD_5	5%	Ancillary service
Uniform	STD_5	5%	Supply of goods

Calculation logic

Per invoice line:
  1. fee_category → tax_category (via mapping)
  2. rate = current tax_rates.rate_pct
  3. vat_amount = ROUND(net × rate / 100, 2)
  4. total = net + vat_amount

Rounding: 2 decimal places per line (FTA requirement)

Output Tax

VAT charged on sales — auto-captured when invoices are posted.

Type	Source	Example
Student	Fee billing	Term fees
B2B	Manual	Vendor services
B2G	Government	KHDA, ADEK, SPEA
B2C	POS	Uniform shop

Net Output VAT = Gross Output − Credit Note VAT

Input Tax

VAT paid on business purchases, recoverable from the FTA.

Expense	Recoverable?	Ref
Office supplies, IT	Yes	Standard
Maintenance	Yes	Operating
Entertainment	50%	Art. 53
Motor vehicles	Restricted	Business-only

FTA Form 201

An auto-populated 9-box VAT return.

Box	Description	Source
1	Standard rated (5%)	Invoice lines WHERE STD_5
4	Zero-rated	Invoice lines WHERE ZERO
5	Exempt	Invoice lines WHERE EXEMPT
6	Total output tax	SUM all vat_amounts
9	Standard purchases	tax_input_vat
10	Total input tax	SUM input vat
12	Net VAT due	Box 6 − Box 10

Period lifecycle: Open → Closed (locked) → Filed (sealed for FTA).

Net VAT Payable

  Gross Output VAT (all invoices)
− Credit Note VAT (CN-xxxx)
= Net Output VAT
− Input VAT (vendor invoices)
= Net VAT Payable to FTA

A negative result is a refund claimable from the FTA.

E-Invoicing (PINT-AE)

The FTA mandates Peppol e-invoicing by July 2027. All required fields are stored:

PINT-AE field	EIN 360 column
Seller TRN	tax_jurisdictions.trn
Buyer TRN	fin_invoices.buyer_trn
Invoice Type	invoice_type_code (380/381)
Tax Category	tax_category_code
Peppol Category	peppol_tax_category

Audit & Compliance

Records are retained for 5 years per the UAE Tax Procedures Law. Immutable journals satisfy this.

Check	Verification
Output Tax	Invoice lines match headers
Input Tax	Register matches vendor records
GL reconciliation	VAT account = Tax Engine totals
Periods	Closed periods permanently locked