5% standard, zero-rated & exempt
Every supply is tagged with the right treatment — standard-rated at 5%, zero-rated, or exempt — so your VAT position stays correct from the first entry.
VAT · Built in
VAT accounting software built for the UAE
AIMuhaseb applies UAE VAT to every transaction as you post it, keeps output and input VAT reconciled, and turns your books into an FTA-ready VAT 201 — no separate tax spreadsheet.
VAT that lives inside your bookkeeping
In the UAE, VAT is charged at a standard rate of 5%, with specific supplies zero-rated or exempt. Getting it right means tagging every sale and purchase correctly, recovering the input VAT you're entitled to, and filing an accurate VAT 201 by the deadline the FTA sets for your tax period.
AIMuhaseb treats VAT as part of the ledger rather than a bolt-on. When you raise an invoice or record an expense, the correct VAT treatment is applied and posted to the right control accounts automatically. Because it runs on proper IFRS double-entry books, your VAT figures and your financial statements are drawn from the same source — they can't drift apart.
Businesses must register for VAT once taxable supplies and imports exceed AED 375,000 over the past 12 months or the next 30 days, with voluntary registration from AED 187,500. Once you're registered, AIMuhaseb keeps your net VAT position live so there are no surprises at the 28th.
What the VAT engine does
Every capability is built in — nothing to bolt on later.
Automatic VAT on transactions
VAT is calculated as you invoice, purchase, and record expenses. No separate tax spreadsheet, no manual maths on each line.
FTA-ready VAT 201
Your return is built straight from posted transactions, laid out in the VAT 201 structure the FTA expects on the EmaraTax portal.
Output & input reconciliation
Output VAT on sales and recoverable input VAT on purchases are reconciled continuously, so the net payable or refundable figure is always live.
Full audit trail
Every VAT figure drills down to its source invoice or expense, with a complete audit log to support an FTA review.
IFRS double-entry base
VAT sits on top of a proper double-entry ledger, so your tax numbers and your financial statements never disagree.
How it fits your books
VAT isn't a separate module you reconcile after the fact — it's applied at the moment you post. That means your return is essentially prepared before you ever open it.
Need a hand with the actual filing? Our team can prepare and submit on your behalf through VAT filing services. Want the rules first? Read the UAE VAT guide or estimate a figure with the VAT calculator.
- VAT calculated automatically as you invoice, purchase, and expense
- Standard-rated (5%), zero-rated, and exempt supplies handled correctly
- FTA-ready VAT 201 generated from your posted transactions
- Output VAT and recoverable input VAT reconciled in real time
- Every figure drills down to its source entry with a full audit log
- Sits on IFRS double-entry books, so tax and reports always match
FAQ
VAT software questions
Does AIMuhaseb calculate UAE VAT automatically?
Yes. As you record sales invoices, purchases, and expenses, AIMuhaseb applies the correct VAT treatment — standard-rated at 5%, zero-rated, or exempt — and posts the VAT to the right accounts. You confirm the treatment and the software does the arithmetic on every line.
Can it generate a VAT 201 return?
Yes. AIMuhaseb builds an FTA-ready VAT 201 from your posted transactions, organised in the boxes the return uses. You review it, then submit it to the Federal Tax Authority through the EmaraTax portal. The software prepares the figures; filing to the FTA is done on the portal.
How are zero-rated and exempt supplies handled?
Each supply carries its own VAT category. Zero-rated supplies are taxable at 0% and still reported, while exempt supplies fall outside the scope of recoverable input VAT. Tagging supplies correctly keeps your return accurate and your input-VAT recovery defensible.
Does it reconcile output and input VAT?
Yes. Output VAT charged on your sales and input VAT paid on your purchases are reconciled continuously, so the net amount payable to — or refundable from — the FTA is always current, not something you assemble at period end.
When is the VAT 201 due in the UAE?
VAT returns and payment are due by the 28th day of the month following your tax period. The tax period is quarterly for annual turnover below AED 150 million and monthly for turnover of AED 150 million or more (the FTA may assign a different period). If the 28th falls on a weekend or public holiday, the deadline moves to the next business day. AIMuhaseb keeps your figures ready ahead of that date.
Is my VAT data secure?
Yes. AIMuhaseb uses 256-bit encryption, isolated per-company data, role-based access, and automated cloud backups, with a full audit log of every change to support an FTA review.
Enquire
See VAT accounting in action
Tell us about your business and we'll show you how AIMuhaseb keeps your VAT correct and your VAT 201 ready to file.