This document provides instructions for configuring VAT declaration reporting in the FTA format in Dynamics 365. It outlines setting up the legal entity, sales tax reporting codes, sales tax authority, mapping codes to tax codes, installing electronic reporting configurations, generating the VAT declaration Excel report, and a sample declaration. It also notes that separate sales tax codes for input and output VAT are not required but the code mapping must be adjusted.

1. VAT Declaration – FTA format -
Configuration in D365
Contents
VAT Declaration – FTA format - Configuration in D365................................................................................1
1. Legal Entity Setup..............................................................................................................................2
2. Sales tax reporting codes..................................................................................................................2
3. Sales Tax Authority............................................................................................................................3
4. Mapping reporting code to Sales tax code .......................................................................................3
5. Latest Microsoft Electronic report configuration .............................................................................4
6. VAT declaration – FTA – excel...........................................................................................................5
7. Sample – VAT Declaration.................................................................................................................6
8. Sales Tax code creation Tip...............................................................................................................6
References ................................................................................................................................................7

2. 1. Legal Entity Setup
I have used the Microsoft Document 1
as the base for the configuration. To start with the legal entity
should have primary address as ARE to detect the localized functionality for VAT.
Once this is done the VAT functionality for UAE will be enabled. The following details need to be
entered in the same form on the Value added tax FastTab.
These are not mandatory – but details entered here are mapped to the excel format for VAT declaration
2. Sales tax reporting codes
In sales tax setup in tax module go to sales tax reporting code (Tax > Indirect tax > Sales tax > Sales tax
reporting codes). These reporting codes are mapped to the sales tax code. Based on the reporting code
added, the values will be populated in the Vat deceleration form.

3. Below are mentioned codes that will cover most of the standard scenarios. Please ensure you use the
same reporting code number as mentioned by Microsoft (link is mentioned in References). In the report
layout select –UAE report layout.
3. Sales Tax Authority
In the sales tax authority make sure that report layout selected is UAE report layout.
4. Mapping reporting code to Sales tax code
Go to the sales tax code. Use the information in the "Report setup" column of the above table to
configure sales tax codes and associate them with sales tax reporting codes on the Report setup FastTab
of each report that is relevant to your company's business.

4. 5. Latest Microsoft Electronic report configuration
The implementation of VAT reporting for the UAE is based on Electronic reporting (ER) configurations.
To use the VAT declaration and FAF functionality in UAE localizations, you must install the following
configurations. Always use the highest available version number of a configuration file.
DOWNLOAD AND SET UP ELECTRONIC REPORTING CONFIGURATIONS
Configuration file name Configuration type
VAT declaration model.version.4.xml Data model
VAT declaration model mapping.version.4.4.xml Model mapping
VAT declaration Excel (AE).version.4.1.xml UAE-specific Microsoft Excel output format
Standard Audit File model mapping.version.6.7.xml Data model
Standard Audit File (SAF-T).version.6.xml Model Mapping
FTA VAT Audit file (AE).version.6.5.xml UAE FAF CSV output format
For development and test environments, if direct access to a deployment virtual machine (VM) is
available, you can download configurations from Microsoft Dynamics Lifecycle Services (LCS). After you
sign in to LCS, select the Shared asset library tile.
Once updated it is recommended to synchronize the latest version from global directory. To do so,
while running the report – click on synchronize.

5. 6. VAT declaration – FTA – excel
Before printing the VAT declaration, one needs to settle the tax for a settlement period. System gives
option to print at time of settling as well as time of print report. Go to Tax > Sales tax inquiries > Sales
tax payments, and select the required sales tax payment. Then, on the Action Pane, select Print report.
A excel containing VAT declaration will be generated based on parameters selected (period).
The details entered below will be reflected in VAT declaration:
Output in report.

6. 7. Sample – VAT Declaration
The voucher posted on settlement is as follows:
VAT declaration
OUTPUT
INPUT
NET PAY
8. Sales Tax code creation Tip
On analyzing Microsoft’s document it seems to suggest to have separate tax code for VAT INPUT and
VAT output. Have one code also works, but tax code mapping has to be adjusted accordingly.

7. References
1. Microsoft document
https://docs.microsoft.com/enus/dynamics365/finance/localizations/uae-vat-setup-reporting
2. Sales tax codes
https://docs.microsoft.com/en-us/dynamics365/finance/localizations/uae-vat-setup-reporting
3. Mapping as per FTA format
Filing VAT Returns and making payments- Vat Topics - FTA (tax.gov.ae)