Accounting for UAE VAT in Scale Insights
Jeriko Belmonte
Hi Elyn,
Thanks for getting back to me. To answer your questions:
Frequency of VAT adjustments: The 5% VAT rate in the UAE is fixed, so there’s no need for frequent changes. Having it as a configurable percentage would be helpful, but for our case it will remain at 5%.
Application of VAT: Ideally, the adjustment should apply automatically to all transactions and fees (advertising, referral fees, shipping fees, subscriptions, etc.), since Amazon charges VAT across the board. A manual option could still be useful for flexibility, but automation would ensure accuracy.
Reporting and analytics: It would be very useful to see VAT as a separate line item in profitability reports. This way, we can clearly distinguish between Amazon’s base fees and the VAT amounts, while still seeing the net profitability after VAT.
This would bring our reporting much closer to reality, since the VAT is a real cost that impacts our margins.
Thanks again for your support!
Best regards,
Jeriko Belmonte
e
elyn
Thank you for posting, Jeriko Belmonte! I have a few more questions for you:
- How frequently do you need to adjust the VAT percentage, and should this be customizable for different regions?
- Would you like the VAT adjustment to be applied automatically to all transactions, or should it be a manual option for each transaction?
- Are there any specific reporting or analytics features you would like to see related to the VAT adjustments?