VAT categories and the TRN
Which VAT category to choose on a line, what it puts in the XML, and how TRNs are checked.
Every invoice line carries a VAT category and a rate. The category is written into the PINT AE XML as a code, and the TRNs of seller and buyer identify the parties to the FTA.
Choose a category on a line
- Open the invoice in the editor.
- In the line, pick the VAT category. The rate is filled in automatically.
- Click Validate to run the PINT AE checks before you submit.
| Category in the editor | Rate | Code in the XML | Typical use |
|---|---|---|---|
| Standard 5 % | 5 % | S | Most supplies in the UAE |
| Zero rated | 0 % | Z | Exports, international transport, certain first supplies |
| Exempt: financial services, residential property, bare land, local passenger transport | 0 % | E | One entry per FTA exemption reason (DL8.46.1 to DL8.46.4) |
| Reverse charge | 5 % stated, no VAT charged | AE | Domestic supplies of electronic devices, precious metals and stones, oil, gas and hydrocarbons between two VAT registrants; the buyer accounts for the 5 % |
| Profit margin scheme | 5 % stated, no VAT amount | N | Only while Profit margin scheme is ticked under Transaction type; shown greyed out otherwise with that note |
Out-of-scope supplies use the document kinds Out-of-scope invoice (480) and Out-of-scope credit note (81) from the right panel; their lines are written with code O.
Exempt lines
The dropdown lists every active exempt rate from Settings → Tax & currency, one per FTA reason. Under an exempt line an Exemption reason (FTA list) picker lets you choose a different reason for that line alone; the reason text follows the matching rate, or the FTA name when no rate carries that code. Every exempt line needs a reason code (IBR-167-AE).
Reverse charge lines
A reverse-charge line charges no VAT: the rate 5 % is stated on the line and in the VAT breakdown, with a VAT amount of zero, and the buyer accounts for the tax. The Reverse charge rate under Settings → Tax & currency is 5 % for the same reason; no VAT is ever computed on these lines. Under the line you pick the goods type and enter the item's GTIN (barcode); both are required, and so is the buyer's TRN. A Reverse charge narrative field below them holds the reason the supply is reverse charged, as the guidelines require. It is filled in from the goods type (for example electronic devices under Cabinet Decision No. 91 of 2023) and stays yours once you edit it. The narrative is printed under the line on the PDF and sent in the e-invoice as the VAT exemption reason text of the line and of the AE VAT breakdown.
Validation rules on categories
- Standard-rated lines at a rate other than 5 % give a warning.
- Zero-rated and exempt lines must have 0 %; anything else is an error.
- Discounts and charges in the totals box have their own category and rate, and are taxed within that group.
The TRN
The Tax Registration Number is 15 digits.
- Your own TRN is entered during onboarding and under Settings → Tax & currency. It is required on every tax invoice (BT-31); without it, validation fails.
- The buyer's TRN comes from the contact or is typed on the invoice. It must be 15 digits when given; leaving it empty gives a warning, since VAT-registered buyers need it.
- Your Peppol participant ID is
0235:<TIN>, where the TIN is the first 10 digits of your TRN. - On received documents, Alya Books checks that the buyer TRN is yours and that the supplier TRN is not yours.
Good to know
- The TRN and the categories are shown with their business-term codes on the Fields tab of PINT AE Reference, and the category codes on its Code lists tab; the editor's BT/BG field search jumps to the matching field.
- The catalogue of items under Items stores a VAT category and rate per product, which the product picker copies into the line.