SAV Academy · VAT & Tax
How VAT flows through SAV
Purpose
Understand how VAT is captured on every transaction and how output and input VAT combine into the VAT position.
Who uses it
Accountants and owners responsible for VAT filing.
Prerequisites
- •VAT categories understood: Standard 5%, Zero, Exempt, Out-of-scope
- •Correct TRNs on parties
Step by step
- 1Set the correct VAT category on each invoice/purchase line.
- 2Post the documents in the correct tax period (driven by the document date).
- 3Open Reports → VAT to see output, input and the net position.
- 4Reconcile the VAT report to the VAT control accounts in the Trial Balance.
Key fields
| VAT category | Standard/Zero/Exempt/Out-of-scope — decides whether and how VAT is charged. |
| Tax point (date) | Places the VAT in a period. |
| TRN | Required for valid VAT treatment. |
Practical example
In a period: VAT output 50 (sales) − VAT input 25 (purchases) = 25 AED net payable.
Accounting impact
VAT output and VAT input post to their control accounts on each invoice/purchase; the net is what you settle with the tax authority.
VAT impact
This is the core VAT lesson — every other document's VAT impact rolls up here into the VAT report.
E-invoice impact
The same VAT categories drive the UAE e-invoice tax breakdown; exempt lines are reported without a 5% charge.
Warnings
- •Posting in the wrong period misstates the VAT return.
Common mistakes
- •Treating an out-of-scope supply as zero-rated (or vice versa).
Tips
- •Reconcile the VAT report to the control accounts before filing.