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Ledger-Integrated VAT — FTA Compliant

UAE VAT Accounting Software
That Balances Itself

Every sales invoice and supplier bill posts simultaneously to your double-entry ledger and your VAT 201 return — zero manual reconciliation, zero FTA audit surprises.

FTA-compliant VAT 201 Double-entry bookkeeping Real-time P&L & balance sheet No credit card required

VAT & Accounting — Unified, Not Bolted Together

Most UAE businesses run their bookkeeping in one tool and their VAT in another. ETaxFlow merges both into a single ledger so nothing falls through the cracks.

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Dual-Purpose Posting

Every transaction posts to your chart of accounts AND to the correct VAT 201 box simultaneously — standard rated, zero rated, exempt, and out of scope.

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VAT Control Account

Output VAT and input VAT are tracked in dedicated control accounts so your balance sheet always matches your VAT liability to the FTA — to the fils.

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Bank Reconciliation

Import UAE bank statements (ENBD, FAB, Mashreq, ADCB) and reconcile VAT payments, refunds, and penalty settlements directly against your general ledger.

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Audit-Ready Trial Balance

Generate a trial balance at any date with VAT entries clearly separated — making external audits and FTA desk reviews a single report away.

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Input Tax Recovery Tracking

Automatically calculates recoverable vs. non-recoverable input VAT, applies partial exemption rules, and records the net payable or refundable amount.

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Multi-Currency Accounting

Record transactions in USD, GBP, EUR or any currency. ETaxFlow converts to AED using the exchange rate on the invoice date and posts the FX gain/loss automatically.

How VAT Flows Through Your Books

From invoice creation to VAT 201 submission — ETaxFlow handles every step without you touching a spreadsheet.

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Raise Invoice or Bill

Create a tax invoice or enter a supplier bill — VAT is calculated and classified automatically.

2

Posts to Ledger

Dr/Cr entries hit Accounts Receivable, Revenue, and Output VAT (or AP, Expense, Input VAT).

3

Updates VAT Return

Every entry populates the relevant box on the live VAT 201 draft — no manual data entry.

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File & Close Period

Review, export your VAT 201 report, submit to FTA, and lock the period — P&L stays accurate.

Accounting Reports Included

Beyond VAT, ETaxFlow generates the financial statements UAE businesses need for banks, auditors, and management.

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Profit & Loss Statement

Monthly, quarterly, or annual P&L — by cost centre, project, or entity — always excluding output VAT so revenue figures are accurate.

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Balance Sheet

Real-time balance sheet with VAT payable, VAT receivable, and all balance items clearly itemised for bank submissions and audit.

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Cash Flow Statement

Tracks operating, investing, and financing cash flows — with VAT payments to FTA shown as separate operating outflows.

VAT 201 automation

Flawless VAT 201 Generation with Emirate-Level Segmentation

Failing to properly declare retail sales across specific UAE regions can trigger compliance delays. ETaxFlow tracks the physical location of your services, automatically populating the regional breakdown boxes required on the VAT 201 form.

Automated Regional Allocation

Breaks down revenues across Abu Dhabi, Dubai, Sharjah, Ajman, UAQ, Ras Al Khaimah, and Fujairah at point of sale — no manual reallocation at period end.

Audit-Ready Transaction Records

Every line item ties directly back to a validated invoice, making external FTA audits clear. Document drill-down on every VAT entry.

Input Tax Recovery Engine

Input VAT tracked per supplier invoice. Partial exemption calculations applied where business has both taxable and exempt activities. Box 10 populated automatically.

Reverse Charge Automation

International service procurements subject to the reverse charge mechanism identified automatically. Output and input VAT balanced in the correct boxes without manual entry.

VAT Accounting Software — FAQs

Common questions about UAE VAT accounting and how ETaxFlow handles them.

A VAT calculator simply computes 5% on an amount — it doesn't record anything. VAT accounting software like ETaxFlow posts every sale and purchase to a double-entry ledger, tracks the running VAT position across all transactions, and auto-generates the VAT 201 return at period end. It replaces both manual bookkeeping and separate VAT calculations in one system.

Each invoice line is classified individually — you set the VAT treatment (standard 5%, zero-rated, exempt, or out-of-scope) per product or service. ETaxFlow then splits the output in the VAT 201 return correctly: standard-rated into Box 1/2, zero-rated into Box 4, exempt into Box 5. No manual apportionment is needed.

Yes. ETaxFlow's import wizard accepts CSV and Excel files for sales invoices, purchase bills, and general journal entries. Historical open invoices can be imported to populate your AR and AP ageing reports. Our onboarding team assists with migration from your existing accounting software or Excel during setup.

ETaxFlow supports multi-entity setups where a UAE VAT group files a single consolidated VAT 201 return across multiple related entities. Inter-company transactions between VAT group members are excluded from the consolidated return automatically.

Expenses can be entered directly or via the bank feed. Petty cash transactions are posted through a dedicated petty cash account. VAT on expenses is claimed as input tax in Box 10 of the VAT 201 — provided the supplier has issued a valid UAE tax invoice with their TRN, which ETaxFlow validates on entry.

See Your VAT & Accounts in One Place

Join 400+ UAE businesses that run their full accounting and VAT compliance on ETaxFlow. No spreadsheets, no reconciliation headaches.

Get Started Try the Free VAT Calculator