VAT Setting in FalconPro Real Estate Software: Complete Guide
Introduction
Setting up and managing VAT (Value Added Tax) is crucial for real estate businesses to ensure compliance, accurate invoicing, and transparent financial reporting. FalconPro Real Estate Software provides a flexible VAT configuration system, allowing you to display your TRN (Tax Registration Number), control VAT charges on receipts and invoices, and manage VAT accounts for both receivables and payables. This guide walks you through every step of VAT setup and best practices for property managers and accountants in the UAE.
Setting Up TRN and Company Details
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TRN Display on Receipts and Invoices:
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Go to the company profile and references section.
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Enter your company name in Arabic and English.
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Add your TRN (Tax Registration Number) and address.
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These details will appear on all printed invoices and receipts.
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Customizing Receipt Headers:
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In the master files under Administration > Master Files > Accounting, set how the TRN appears.
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Enable the VAT option to show the TRN and VAT text on receipts.
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Customize the receipt header to display as “Receipt Voucher,” “Tax Receipt Voucher,” or any preferred label.
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VAT Accounts Setup in the Chart of Accounts
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Required VAT Accounts:
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VAT Payables: Under liabilities, for VAT collected from clients.
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Input VAT (Advanced VAT): Under assets, for VAT paid to suppliers.
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How VAT Flows:
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VAT collected from clients is credited to VAT Payables.
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VAT paid to suppliers is debited to Input VAT.
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At the end of the period, the net VAT (Payables minus Input VAT) is paid to the government.
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Configuring VAT Charges and Fees Items
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Adding VAT Charges:
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Navigate to Master Files > Accounting > Fees Items.
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Add a new fees item for VAT charges if not already present.
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Assign the appropriate accounts for VAT charges (customer account for credit, VAT Payables for advance).
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Country-Specific VAT Handling:
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Some countries require VAT to be paid upon invoice issuance, others upon collection.
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FalconPro allows you to configure whether VAT is recognized at invoice or receipt time.
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Set up the system to credit the VAT account at the correct stage based on your jurisdiction.
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Linking VAT Accounts to Properties and Buildings
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General vs. Property-Specific Accounts:
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If using general accounts, configure VAT accounts in the master files.
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For property-specific accounts, go to Administration > Fees Accounts.
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Double-click each building to add VAT charges, customer accounts, and VAT-related accounts.
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This ensures each building’s VAT is tracked separately if required.
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VAT Charges in Contracts and Installments
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VAT Calculation Methods:
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Percentage from Contract: VAT is calculated on the total contract value and applied to the first installment.
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Percentage from Installment: VAT is calculated and applied to each installment separately.
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Configuring VAT in Property Setup:
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In property setup, select whether VAT is based on contract or installment.
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Define the VAT percentage (e.g., 5%).
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For mixed-use buildings, assign VAT only to commercial units by setting their usage type accordingly.
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Handling VAT on Other Fees
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Commission, Administration, and Service Charges:
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Set up VAT charges for additional fees (e.g., commission, service charges) in the master files.
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Assign the VAT percentage and link the correct accounts.
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When these fees are added to a contract, VAT is calculated automatically.
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Printing Invoices and Receipts with VAT
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Invoice Format:
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Invoices display company and client TRN, address, and VAT details.
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Each client profile should include TRN and address for accurate invoice generation.
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Multiple TRNs for Different Owners:
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For companies managing properties for different owners, enable the option to use the landlord’s TRN instead of the company’s.
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The invoice will pull TRN and address details from the landlord’s profile when this option is selected.
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VAT Reporting and Reconciliation
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VAT Transactions Report:
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Access the accounts transactions report to view all VAT-related entries (VAT Payable, Input VAT).
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Filter by VAT accounts to see collections, payments, and net VAT due.
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Client Invoices Report:
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Generate reports by city or date to review all client invoices and related VAT.
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Best Practices
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Always ensure TRN and address details are accurate in both company and client profiles.
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Set up VAT accounts and link them to each property or building as needed.
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Use the correct VAT calculation method (contract or installment) for your business model.
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Regularly review VAT reports for compliance and timely government payments.
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For refunds and payables, use the correct VAT accounts in payment vouchers and payable invoices.
Conclusion
VAT setting in FalconPro Real Estate Software is designed for flexibility, compliance, and ease of use. By following these steps—configuring TRN, setting up VAT accounts, linking to properties, and choosing the right calculation method—you ensure accurate invoicing, transparent reporting, and full compliance with UAE VAT regulations.
Frequently Asked Questions (FAQ)
Q1: How do I display the TRN on receipts and invoices?
Enter the TRN in the company profile and enable VAT in the master files; it will appear on all printed documents.
Q2: Can I set up different VAT accounts for each building?
Yes, use Administration > Fees Accounts to assign VAT accounts to individual buildings.
Q3: How is VAT calculated on contracts?
Choose between percentage from contract or installment in property setup; VAT is then applied accordingly.
Q4: How do I handle VAT for commissions and service charges?
Set up VAT charges for these items in the master files and assign the correct percentage and accounts.
Q5: Can I use a landlord’s TRN instead of the company’s?
Yes, enable the option to use the landlord’s TRN in references for properties managed for different owners.
