VAT / Tax Return Guide

How to review tax setup, check VAT transactions, prepare the VAT Return, and record VAT payment correctly in QBM.

Tax & VAT Compliance End-User Guide

Overview

QBM separates VAT work into setup, transaction review, return preparation, and payment. This helps you check tax information before you finalize the return.

Tax CodesControl how VAT is calculated on transactions
VAT TransactionsLet you review what is included before filing
VAT ReturnShows tax due on sales, tax reclaimable on purchases, and tax to pay
Important: The VAT Return is only as accurate as the tax codes, tax items, and source transactions entered before it.

Main Screens

Screen Tab Path Use It For
Tax Code List Tax > Tax Code List Review active tax codes and keep the correct rates and treatment available to users.
Tax Item List Tax > Tax Item List Maintain tax items used in day-to-day VAT reporting and categorization.
VAT Transactions Tax > VAT Transactions Review tax activity before preparing a return.
VAT Return Tax > VAT Return Prepare the return for the selected period.
VAT Return by Emirate Tax > VAT Return by Emirate Use when your reporting process also needs emirate-level review.
Pay Tax Tax > Pay Tax Record the settlement of VAT due after the return is ready.

Tax Setup

Tab Path: Tax > Tax Code List / Tax Item List
  1. Review the active tax codes your business uses for sales, purchases, exempt items, and zero-rated items.
  2. Confirm the correct tax items are available so users can classify transactions properly.
  3. Make sure customer invoices, sales receipts, purchase invoices, and other source transactions are using the correct tax code before month-end or quarter-end review.
  4. Only leave inactive tax codes hidden when they should not be used anymore. Keep historical codes available if they are still needed for old transactions and reporting.
Important: Do not wait until filing day to fix tax setup. Correcting source transactions late can delay the return and create avoidable reconciliation work.

VAT Transactions Review

Tab Path: Tax > VAT Transactions

The VAT Transactions screen is the working review area before you produce the final return.

  • Use it to review the selected period and confirm the included tax activity is reasonable.
  • Look for missing codes, unexpected values, or transactions that clearly belong to a different period.
  • Use it before opening the VAT Return so the totals make sense when the return is generated.
Good practice: Review VAT Transactions first, then open the VAT Return. This reduces surprises and makes investigation easier.

VAT Return Workflow

Tab Path: Tax > VAT Return
  1. Open VAT Return and confirm the company name and TRN shown at the top.
  2. Select the reporting period in the date range area.
  3. Choose the reporting mode that matches your tax process, such as Cash Basis or Accrual Basis.
  4. Click Go to calculate the return for the selected period.
  5. Review the total purchases, total sales, Tax Due on Sales and Other Outputs, Tax Reclaimed on Purchases, and Tax To Pay.
  6. Use the drill-down links on the tax totals when you need to investigate supporting transaction detail.
  7. Print or save the return according to your company process.
Field Or Control What It Means
Cash Basis / Accrual Basis Controls how QBM prepares the return for the selected VAT reporting approach.
Total Sales High-level taxable sales amount included in the return.
Total Purchases High-level purchase amount used in VAT review and reclaim calculation.
Tax Due on Sales and Other Outputs The output VAT collected or due on sales-side activity.
Tax Reclaimed on Purchases The input VAT that may be reclaimed based on purchase activity.
Tax To Pay The net VAT payable after purchase reclaim has been considered.

Pay Tax

Tab Path: Tax > Pay Tax

After the return is finalized, use Pay Tax to record the settlement in QBM.

  1. Enter the transaction date and the VAT period being settled.
  2. Review Amount Due and enter Amount Paid.
  3. Select the tax agency or vendor used for VAT payment if your process requires it.
  4. Confirm the payable and liability accounts used for the settlement entry.
  5. Use Close Periods only when your company policy is to lock the period after payment.
  6. Save the payment record.
Tip: Paying VAT in QBM is separate from preparing the return. The return tells you what is due; the payment screen records that it has been settled.

Best Practice

  • Keep tax codes and tax items reviewed before large transaction periods.
  • Check VAT Transactions before producing the return.
  • Investigate unexpected balances before recording tax payment.
  • Use consistent reporting mode from one return to the next unless your tax advisor instructs otherwise.
  • Keep printed or PDF copies of final VAT returns according to your company filing policy.