QuickBooks Online GCC VAT Setup: The 2025 Step-by-Step Guide

More Gulf SMEs are ditching spreadsheets for QuickBooks Online (QBO), but many stumble on the very first hurdle: getting VAT codes and reports to match GCC rules. If you operate in the UAE, Saudi Arabia, Bahrain, or Oman, the default “VAT/GST” settings won’t cut it.

This guide walks you through a straight-from-dashboard setup that takes about 60 minutes—and prevents headaches at return time.

1. Prerequisites Before You Start

Item	Why It Matters
Valid TRN	QBO prints this on invoices and fetches the correct VAT return form.
Correct Home Currency	Set to AED, SAR, BHD, OMR, etc. before enabling multi-currency.
Chart of Accounts Clean-up	Duplicate revenue accounts confuse VAT codes. Merge first.
Access Level	You must be Primary Admin or Company Admin to turn on VAT.

Tip: SMEs with turnover < OMR 1 million can still qualify if they hold a formal industrial licence.

2. Turn On VAT in QBO (GCC Region)

QBO Global version now supports GCC VAT natively as of the April 2025 release.

1. Settings ⚙️ → Taxes → Set up Tax
2. Choose “VAT” (not Sales Tax).
3. Select Country (UAE, Saudi Arabia, Bahrain, Oman).
4. Enter your Tax Registration Number (TRN).
5. Select Reporting Frequency (Monthly or Quarterly).
6. Click Save—QBO auto-creates GCC-compliant tax codes:
   • 5 % (Standard Rated)
   • 0 % (Zero-Rated)
   • Exempt
   • Reverse-Charge (for imports & services)

3. Map VAT Codes to Accounts

Code	When to Use	Default QBO Account
5 % SR	Domestic sales and purchases subject to standard rate	VAT Payable
0 % ZR	Exports outside GCC, certain food & health-care	VAT Payable
Exempt	Residential rent, life insurance, etc.	VAT Payable
RC IMPORTS	Import of goods & services (reverse-charge)	VAT Payable

Tip: Rename codes to “5 % SR UAE” or “RC-KSA” if you operate multiple GCC entities.

4. Enable Multi-Currency (If Needed)

1. Settings → Account & Settings → Advanced → Currency
2. Turn on Multi-currency (irreversible).
3. Add customer currency (USD, EUR).
4. QBO tracks FX gain/loss and converts VAT at Central Bank daily rates.

5. Set Up Reverse-Charge for Imports

• Create a Bill from the overseas supplier.
• Apply RC IMPORTS code on each line.
• QBO posts VAT on both purchase and sales side—netting to zero but reporting in Box 3/14 (UAE example).

For Customs-cleared imports, record the VAT Payment against “Payable to FTA” when settling the SAR/ AED e-Dirham.

6. Generate and Review the VAT Return

1. Taxes → VAT → Prepare return
2. Review Box 1–14 (UAE) or KSA Return boxes pre-filled.
3. Export to Excel for reconciliation.
4. File through FTA/ZATCA portal; attach XML if required.

7. Four Common Setup Mistakes (and Fixes)

Mistake	Fix
Using GST (7 %) template	Always pick VAT—GCC codes auto-load.
Reverse-charge flagged as 0 %	Use RC IMPORTS code; don’t label as 0 %.
No multi-currency before first USD invoice	Enable before posting; otherwise edit all historic transactions
Wrong TRN on invoices	Keep BOMs, production logs, and scrap reports for 5 years.

8. 2025 Compliance Checklist

• VAT feature enabled & TRN verified.
• Standard, zero-rate, exempt, RC codes mapped.
• Multi-currency enabled (if needed).
• Sample VAT return matches trial balance totals.
• Backup taken weekly via QBO “Company Backup” app.

How INDGenius Accounting Helps GCC QBO Users

• One-time VAT setup—codes, chart of accounts, and test filing.
• Monthly reconciliation—import vs. customs, RC services.
• Quarterly VAT return—prep, review, file, and payment reminder.