Set up counterparties and their zones in CT Configuration

Steps

1. 1

   Open CT Configuration

   In the left menu, under Tax, choose CT Configuration. CT is short for corporate tax. This screen holds the background facts the calculation reads. The four tiles count the counterparties, the employees, the free zone licence and the counterparties with no zone. The list on the left has four sections; it opens on Vendors and Counterparties.

2. 2

   Select Seed from transactions

   The directory is empty. Select Seed from transactions. The system reads the imported transactions and adds every supplier and customer named on them. A message says how many were added.

   • Select Seed from transactions
3. 3

   Read the seeded list

   Eleven counterparties are listed. Each row has a Zone type list, the Country, a VAT override list, the tax registration number, or TRN, and the Source, which says where the entry came from. A row with no zone is shaded and its Zone type reads set zone, because a transaction does not say where a business is based. The tiles at the top show that ten of the eleven are missing a zone.

4. 4

   Select Template to get the file layout

   Zones can be set for many counterparties at once from a file. Select Template. A file called counterparties template is downloaded. Its columns are the name, TRN, country, zone type, jurisdiction, company type, address and two optional defaults. Only the name is required. In zone type use one of four words: MAINLAND, FREE_ZONE, DESIGNATED_ZONE or INTERNATIONAL. A designated zone is a free zone the tax authority treats as outside the country for VAT on goods. International means a business outside the United Arab Emirates.

   • Select Template
5. 5

   Select Bulk Upload CSV and choose your file

   Select Bulk Upload CSV and choose the file you filled in. Here the file has twelve lines: ten give a zone to counterparties already in the list, and two are new, Harbourline Imports Ltd in the United Kingdom and Al Noor Packaging Supplies, whose zone was left blank. A message confirms how many were created and how many were updated.

   • Upload Choose a file: meridian-counterparties.csv
6. 6

   Search for a counterparty

   Type part of a name in Search counterparties to find one in a long list. Type Falcon. Falcon Crest Logistics now shows Free Zone, qualifying, and the country AE, taken from the file.

   • Type Search counterparties…: Falcon

   

7. 7

   Find the counterparties that still have no zone

   Clear the search. Two rows are still shaded: Al Noor Packaging Supplies, which had a blank zone in the file, and Saeed Al Marri, the managing director, who was seeded from a transaction and was not in the file. The Unzoned tile at the top counts them, and the note under the table says their income cannot be treated as qualifying until the zone is set.

8. 8

   Choose the zone in the row

   In the row for Al Noor Packaging Supplies, open the Zone type list and choose Mainland, taxable 9 percent. The change is saved straight away and the message Counterparty updated appears. There is no Save button.

   • Choose Zone type for Al Noor Packaging Supplies: Mainland (taxable 9%)
9. 9

   Set the zone for the director

   Do the same for Saeed Al Marri: choose Mainland, taxable 9 percent. A person paid by the company is listed here like any other counterparty. Lesson 5 records him as a connected person as well.

   • Choose Zone type for Saeed Al Marri: Mainland (taxable 9%)
10. 10

    Know what VAT override is for

    The VAT override list in each row normally reads auto, which lets the system decide the VAT treatment of each transaction. Choose Standard 5 percent, Zero-rated, Exempt or Out of scope only when every transaction with that counterparty must be treated one way. Leave it on auto here.

11. 11

    Read the totals at the top

    Scroll back to the top. Counterparties reads thirteen, all zoned, and Unzoned reads zero. When colleagues import more transactions, select Seed from transactions again and set the zone of any new names.