In addition to the tax rates applicable to goods and services, different tax treatments will be applied to your customers and vendors. These tax treatments will determine the tax rates applicable to these goods and services. Tax treatment for a customer or a vendor is determined by the following factors: Business operating location and VAT registration.
As a VAT-compliant business, you must configure your customer and vendor tax treatment in order to create a transaction for them. This is the tax rates applied to each transaction will be determined by the customer and vendor's tax treatment as well as the location of supply. You can specify the tax treatment when creating customers and vendors.
Place of Supply
The place of supply is where a transaction is considered to have occurred for VAT purposes.The place of supply is determined differently for goods and for services.
In Zakya, the place of supply for in-store transactions will be the branch location, while door delivery orders will be taken based on the emirate selected for delivery.
For a contact in the UAE, the place of supply can be any one of the following emirates:
- Abu Dhabi
- Ajman
- Dubai
- Fujairah
- Ras al- Khaimah
- Sharjah
- Umm al-Quwain
Tax Treatment
| Tax Treatment | Description |
|---|---|
| VAT Registered | The business is from UAE and is registered for VAT |
| Non VAT Registered | The person/business is from UAE and is not registered for VAT |
| VAT Registered - Designated Zones | The business is from Designated Zone in the UAE and is registered for VAT |
| Non VAT Registered - Designated Zones | The person/business is from the Designated Zone in the UAE and is not registered for VAT |
Set tax treatment
- Navigate to the Sales module and select Customers.
- Click New+ in the top-right corner.
- Navigate to Other details and choose your Tax treatment and enter the required details.
- Click Save.
Note
- Navigate to the Purchase module and select Vendors and follow from step 2 to configure tax treatment for Vendors.