Set the VAT treatment of an item

Steps

1. Click Inventory in the left menu, then Items & Services.
2. Click New Item / Service, or open an existing item to edit it.
3. Under Sales Information, open Sales VAT and pick one: - Standard Rate 5% — the normal UAE rate. - Zero Rated 0% — for example exports with evidence. - Exempt — exempt supplies. - Out of scope — outside UAE VAT law entirely (compensation, government fines, donations, supplies wholly outside the UAE).
4. Under Purchase Information, pick the Purchase VAT the same way.
5. Click Save Item.

What MAJA does for you

• Each new invoice or bill line for the item starts with this VAT treatment. You can still change it on a single line.
• On the VAT return, standard-rated sales go to Box 1 (split by emirate), zero-rated sales to Box 4 and exempt sales to Box 5. Out-of-scope sales appear nowhere on the return; MAJA notes their total under the return so you can see they were left out on purpose.
• Composite items have their own Sales VAT on the composite item form.

Good to know

• A new item starts with Standard Rate 5% for both sales and purchases.
• If your company is not VAT-registered on a document's date (Settings → Organisation), documents print as an INVOICE with no VAT, whatever the item says.
• When an invoice's place of supply is outside the UAE, 5% cannot apply. MAJA refuses the save and asks you to set the line to 0% or change the place of supply.