How can I get started with UAE Compliance in Deskera Books?

Table of contents

We have finally rolled-out UAE compliance on Deskera Books.

And, if you are business owners in UAE and currently looking for an accounting software that comply with UAE rules and regulations, you're looking at the right page.

Read more below as we cover the step-by-step guide to setup your UAE compliance so that you can navigate Deskera fuss-free.

Without further ado, let's begin.

How do I set up my company details?

2. In Deskera Console, click on Books. The system will redirect you to the Deskera Books Main Dashboard.

3. A pop-up will appear. Choose to set-up your company here. Fill in the following information:

Your organization name - This is populated based on the organization name you have filled when signing up for your Deskera account. Please note that you cannot edit the company name once you have saved it during the sign-up process.
The financial year start date
The book beginning date - To understand more about these dates, please click here.
Tax Residency - Select the country your business is registered. You can select UAE.
Reporting Currency - This would be auto-populated based on the currency of the country you have selected. In this case, it will be the United Arab Emirates Dirham (AED)

4. Click on the Next button.

5. In the following screen, enter the nature of your products. Once you have set the nature of your products, click on the All Set button.

Where can I save my company registration number?

You have successfully set-up your organization in UAE.

So, what's next?

Next, you will need to fill in your VAT number and business number.

To do that, follow the steps here:

On Deskera Books Main Dashboard, click on the company tab via the sidebar menu. The system will direct you to your company details page.
Click on Organization Profile.

3. Click on the edit icon to edit your company details here.

4. Next, fill in the fields as stated below:

GST No. - Enter the VAT number which is the 15 digits number
Enable the checkbox if your business is located in a designated zone
Enable the toggle if you have trade with contacts outside UAE. Choose the account affected for this trade
Active Excise, if applicable. Choose the account affected here from the drop-down menu

Setting up your Chart of Accounts

To view the default Chart of Accounts, you can read more on the steps here:

Go to Accounting via the sidebar menu.

2. Click on the Chart of Accounts (COA).

3. On this page, you can view the default COA listed in Deskera Books. If you couldn't find any COA that fits your business requirements, you can always create a new account by clicking on the "Add" button.

Please refer to this article to guide you on creating the Chart of Account in Deskera Books.

Create a new tax rate

You need to ensure that the applicable tax rates are available for your organization once your Chart of Accounts is up and running.

Follows the steps here to view the default tax rates in Deskera Books:

Click on Settings via the sidebar menu >> Select Tax.

2. You can view the default tax rate in the system. However, if you couldn't find your tax rate here, you can always create a new tax by clicking on the Add Tax button.

3. A pop-up will appear. Fill in the following fields:

Tax Name - Enter the tax name
Percentage - The percentage of the tax rate
Description - Short notes describing the tax
Tax Code - Enter the tax code
Tax Type - Choose the tax type. You can select the tax type as Sales, Purchases, or both
Tax Account - Select the tax account involved. The options that appeared from the dropdown here is populated based on the accounts in COA

4. Click on the Save button. You can now view the newly added tax and tax group from the Tax List.

5. You can edit the tax details but cannot delete the system's default tax rate. Also, you are only allowed to delete the tax rate you created on your own.

6. If you have already applied the tax rate in any documents or contacts, you cannot delete the respective tax rate.

How can I apply the tax against my contact?

Contact means both your customers and vendors in Deskera Books.

To apply the tax rate for the respective contact, you can refer to the steps below:

Go to the Contacts tab via the sidebar menu.
Click on the Add Contact button.
Fill in the fields, as shown below:

Name - Your contact's name
Auto-numbering format - Customize the auto-numbering format for the contact
Email Address - The contact's email address
Currency - The currency is auto-populated based on the currency saved on the setting page
VAT Treatment - Enter the VAT treatment for your contact as per the drop-down menu
VAT Registration Number - Your vendor's VAT number
Update the contact's accounting tab and their billing shipping address

4. Click on the Save button.

How can I apply the tax against a product?

Follow the guide here to create a product in Deskera Books.

2. In the Product window, click on the accounting tab. In this tab, you can choose the purchase tax and sales tax in the Buy and Sell section.

3. The purchase tax and sales tax will be populated as per the configuration in your Master Tax page.

4. Click on the Create product button once this is done.

How to apply the tax against an invoice or bill?

Once you have created your products and contacts, you can start issuing invoices or bills to your customers/vendors.

To create an invoice, you can follow the steps here:

Go to the Sell tab on the sidebar menu.
Click on the Create Invoice button.
Fill in the fields in the invoice as per the guide here.

4. Upon selecting the product line item, the tax column will be auto-populated based on the default sales tax rate saved in the Product Module. You can also change the tax rate here.

5. Click on the Save button.

To create a bill, you can follow the steps mentioned here:

Go to Buy via the sidebar menu
Click on the Create Bill button.
Fill in the fields in the bill as per the guide here.

4. Upon selecting the product line item, the tax column will be auto-populated based on the default purchase tax rate saved in the Product Module. You can also change the tax rate here.