Short time to become compliant

On August 21st, 2017, Federal Decree-Law No. (8) of 2017 on Value Added Tax was passed by His Highness Sheikh Khalifa Bin Zayed Al Nahyan – effective as of 1st of January 2018, defining that VAT will be imposed in the UAE at a rate of 5% with some goods and services being either exempt or zero-rated.

Very soon, the final VAT regulations for the UAE will be published. This does not, however, give organisations much time to become compliant with these new regulations. VAT invoices may need to be issued for any goods and services that are to be delivered wholly or partially after 1 Jan 2018, so many companies will not even have the rest of the year to prepare!

There is a solution

If you are not going to be ready, you are not alone. Many organisations will be unprepared for VAT handling in time. This may be due to restrictions in IT project resources, ERP systems or more commonly, uncertainty about the actual VAT regulations are yet to be issued. This may lead to fines or high levels of manual work.

There is an answer. Pagero can provide the tools to ensure that you are generating correct VAT invoices immediately.

How can we produce VAT compliant invoices now?

The mechanism is very simple and involve little or no IT work on your side. This means that you can continue to invest your efforts in ensuring that your future invoices can be generated in accordance with VAT regulations.

  • You create invoices in your ERP financial system
  • These invoices are sent to Pagero’s cloud-based platform Pagero Online, in one of the following methods:
    • Print to our virtual printer (Pagero Connect
    • Send invoices in an electronic format (your ERP format)
    • Create invoices manually in Pagero Online
  • Pagero converts your invoices into a standard e-invoice format
  • Pagero applies VAT ‘enrichments’ that you control:
    • You maintain an enrichment table in Pagero Online, with your product codes and the applicable VAT rate
    • Pagero applies the correct VAT on a line level to the invoices
  • Pagero delivers the invoices to your customers:
    • Via email
    • Via Pagero Web Portal
    • Electronically for larger customers
    • Via print
  • Generate VAT reports from Pagero, to be used for:
    • VAT Filing
    • Retroactive updating of transactions in your ERP

“Pagero can provide the tools to ensure that you are generating correct VAT invoices immediately.”

Do we need to install any hardware or software?

In most cases, there will be no hardware or software required, as Pagero Online is a cloud service. If you wish to use the Pagero Connect virtual printer to send invoices to Pagero, a small software package will need to be downloaded and installed.

Want to find out more?

Read more

UAE Ministry of Finance: VAT FAQ
Federal Decree-Law No. (8) of 2017 on Value Added Tax

Attend to a free webinar

We also invite you to participate in a webinar on 12 November at 11 am CET.

Get in touch

To find out more, please feel free to drop us an email at victor.axmalm@pagero.com or paul.kerridge@pagero.com, or call us on +971 55 483 79 02.

Who is Pagero?

Pagero is a leading global supplier of Accounts Receivable and Payable automation services. We focus on the digitization of orders, invoices and related documents into electronic messaging. Our cloud software collects and deliverers orders and invoices to and from organisations in a manner appropriate to the size and nature of each organisation. What is more, due to our European heritage, we have been assisting our customers with their VAT compliancy for many years.