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Foreign-currency invoice VAT converter (AED)
VAT is fixed in dirhams at the Central Bank rate on the date of supply. Enter the invoice and the rate to get the AED figures, and see why a later exchange difference leaves the VAT alone.
Net, in AED
AED 34,280.00
VAT at 5%, in AED
AED 1,714.00
Gross, in AED
AED 35,994.00
Exchange gain on payment
AED 210.00
The invoice shows EUR 8,400.00 in total, and must also show the line amounts, the gross AED 35,994.00 and the VAT AED 1,714.00 in AED, with the rate 4.2850. Box 1 carries AED 34,280.00 and AED 1,714.00 of output tax. When the customer pays EUR 8,400.00 at 4.3100, you receive AED 36,204.00: the AED 210.00 difference is an exchange gain in the accounts and does not change the VAT, which was fixed at the date of supply.
Disclaimer
Illustrative figures computed in your browser. Nothing is uploaded, stored or sent anywhere. Not accounting or tax advice; verify treatment with your advisor.