VAT rates and categories
Manage the VAT rates offered on invoice lines, their categories and the exemption reasons written into the e-invoice, and set the default rate.
UAE VAT has one standard rate of 5 % and four other categories that carry no VAT. Alya Books keeps them as VAT rates under Settings; each rate belongs to a category and, for the non-standard ones, carries the exemption reason that goes into the PINT AE XML.
The categories
| Category | Code | Rate | Typical use |
|---|---|---|---|
| Standard rated | S | 5 % | Most goods and services in the UAE |
| Zero rated | Z | 0 % | Exports, international transport, certain education and healthcare supplies |
| Exempt | E | 0 % | Residential rent, local passenger transport, some financial services |
| Reverse charge | AE | 5 % stated, no VAT charged | Supplies where the buyer accounts for VAT |
| Out of scope | O | 0 % | Supplies outside UAE VAT |
Manage the rates
- Go to Settings → Tax & currency. The VAT rates and categories card lists the rates Alya Books created for you: one each for standard, zero rated, reverse charge and out of scope, and four exempt rates, one per FTA exemption reason (financial services, residential property, bare land, local passenger transport).
- Click the pencil to rename a rate, translate it, change its Exemption reason code and Exemption reason (BT-121 and BT-120 in the XML), set it as Default for new lines or switch it off.
- Click Rate to add one, for example a second zero-rated entry with a different exemption text for exports. Only one rate is the default.
- Default VAT Rate (%) in the Tax Configuration card stays the rate used for new items.
Where the rates appear
- Every invoice line offers the active rates, with one entry per exempt rate; document discounts offer one entry per category. Picking one sets the rate and the exemption reason on the line; the reason is written once per category into the XML tax breakdown. An exempt line can switch to another FTA reason with the picker under the line.
- The reason text of the Reverse charge rate is the fallback narrative; on an invoice the narrative under each reverse-charge line is filled in from the goods type and can be edited there.
- Items pick a category under Items → Add Item → Tax & Pricing; the editor applies the matching rate.
- The VAT Return page groups issued invoices by category into the boxes of the VAT 201.
Good to know
- Amounts are in AED with two decimals (fils); VAT is calculated per category and rate on the taxable amount, rounded half up.
- Out-of-scope supplies can also use the document kinds Out-of-scope invoice and Out-of-scope credit note in the editor's right panel.
- Owners, admins and accountants manage rates; the default rate cannot be deleted.
- The API offers the same list under
GET /settings/tax-rates.