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Sales tax authorities

Sales tax authorities define the specific governmental or regulatory bodies to which your organisation is legally obligated to report and remit collected taxes. Within the ERP Tax Engine, every calculated tax must ultimately roll up to a designated authority for period-end settlement.

Creating a Sales tax authority​

To configure a tax authority, navigate to Tax > Setup > Sales tax > Sales tax authorities.

For each regulatory body, you must define the foundational identification parameters:

  • Name: The formal, legal name of the tax authority (e.g., Federal Tax Authority (FTA) or Her Majesty's Revenue and Customs).
  • Description: A detailed explanation of the authority's jurisdiction, purpose, or the specific taxes it administers.

Vendor account mapping​

A critical architectural requirement is the association of the Tax Authority with a specific Vendor account defined within the Accounts Payable module.

When you execute the period-end Settle and post sales tax routine, the system calculates your net tax liability. Because the tax authority effectively acts as a creditor to whom you owe funds, the system automatically generates a vendor transaction (e.g., an invoice) against this linked Vendor account for the total settled amount. This integration seamlessly transitions the raw tax liability from the General Ledger into an actionable payment workflow for your Accounts Payable team.

Contact information​

The Contact information section houses the communication details for the authority. Maintaining accurate contact data is critical for generating formal tax correspondence and declarations directly from the system.

  • Email: The official contact email for electronic submissions or inquiries (e.g., info@tax.gov.ae).
  • Phone: The primary contact number for the authority.
  • Tele/Fax: Dedicated facsimile numbers, if still required by the specific jurisdiction.

Address information​

The Address information section defines the physical or postal location of the governmental body.

  • Street: The detailed building and street routing information (e.g., Central Park Towers, Office Tower, Level 15, DIFC).
  • City / Country / Postal code: The standard geographical coordinates of the authority's headquarters.
Reporting Implications

Accurate contact and address information is frequently mandated to be printed on formal, system-generated tax declarations and settlement reports. Ensure these details perfectly mirror the official governmental records to prevent rejection of your electronic or physical submissions.

Next Steps​

Once the governing authorities are definitively established within the system, you must configure the calendar frequencies at which you are legally obligated to report to them. Proceed to the Sales tax settlement periods documentation.