Bookkeeping · United Arab EmiratesYour VAT returns, Corporate Tax return and free zone audit all start from the same books. We keep them current.
We record sales, purchases, bank, payroll and payment gateway transactions each month, in AED and under IFRS, so VAT returns and year-end work start from records that are already right.
Accounting
At a glance
- Authorities
- Federal Tax Authority (FTA)
- Forms & references
- VAT 201Corporate Tax returnIFRS / IFRS for SMEs
- Software
- Zoho Books, Xero, QuickBooks, Odoo or your ERP
- Standards
- IFRS, or IFRS for SMEs if revenue is AED 50 million or less
- Currency
- AED, with foreign currency balances revalued at period end
- Keeping records
- At least 7 years for Corporate Tax
Overview
What it is, and why it matters.
Since Corporate Tax arrived, UAE bookkeeping has to do more than support VAT. Taxable income starts from financial statements prepared under IFRS, or IFRS for SMEs where revenue is AED 50 million or less, so most companies need accruals-based books with fixed assets, accruals and related-party balances kept properly through the year. Businesses with revenue of AED 3 million or less may use the cash basis.
Many UAE businesses deal in several currencies. The dirham is pegged to the US dollar at AED 3.6725, but sterling, rupee and euro amounts move, and tax returns are in AED, so we record foreign currency transactions at consistent rates and revalue balances at the period end.
Corporate Tax records must be kept for at least 7 years after the end of the tax period, and VAT records for at least 5. We keep them organised and exportable, so they survive a change of software or staff.
E-invoicing is next: businesses with revenue of AED 50 million or more go live on 1 January 2027 and most others on 1 July 2027 (at the time of writing). Clean customer and supplier data now makes that change much easier.
Who needs it
Who typically needs it.
- 01
Owner-managed mainland companies
Businesses that want accurate monthly figures and books ready for VAT returns and the Corporate Tax return.
- 02
Free zone companies facing an audit
Companies whose free zone authority, or a claim to 0% Corporate Tax, requires audited accounts every year.
- 03
E-commerce and marketplace sellers
Businesses selling through their own store and regional marketplaces, with gateway fees, refunds and payouts to separate.
- 04
UAE subsidiaries of overseas groups
Local companies that report to a parent in Pakistan, the UK or the US and need UAE books kept to UAE rules.
- 05
Founders who kept records in spreadsheets
Businesses that managed VAT from spreadsheets and now need proper books for Corporate Tax.
When you need it
The moments that usually trigger it.
- You’ve just received your licence and want the books set up before the first VAT period.
- Your first Corporate Tax return is coming and the books were only kept for VAT.
- Your free zone authority or bank has asked for audited accounts.
- You trade in several currencies and nobody is sure the balances are right.
- Your year end is close and months of bank transactions are still uncoded.
- You’re preparing for e-invoicing and your customer and supplier records are inconsistent.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Setting up a chart of accounts, VAT codes and tax categories that work for both VAT and Corporate Tax.
- 02
Recording sales, purchases, expenses and bank transactions monthly, with invoices attached.
- 03
Correct VAT treatment of standard-rated, zero-rated and exempt supplies, reverse-charge imports and blocked input tax.
- 04
Tracking items that need Corporate Tax adjustments, such as entertainment, fines, related-party charges and owners’ personal costs.
- 05
Recording multi-currency transactions and period-end exchange revaluations.
- 06
Posting payroll from your WPS payroll reports and accruing end-of-service gratuity.
- 07
Sales and purchase ledgers, aged receivables and payables, and related-party balances.
- 08
Monthly profit and loss, balance sheet and VAT reports, with open questions listed.
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationReview your set-up
We look at your licence, VAT and Corporate Tax registrations, tax periods, software, bank accounts and currencies.
Set up or clean up
We connect bank feeds where available, set VAT codes and opening balances from your last accounts, and list any months that need catching up.
Monthly processing
Transactions are coded, invoices and bills matched, and owner transactions posted to the right accounts. Questions come to you in one batch.
Review before each VAT return
We reconcile the bank, check VAT codes and review unusual items before the VAT figures are prepared.
Year-end handover
You receive a reconciled trial balance and supporting schedules for your financial statements, audit and Corporate Tax return.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
Business details
- Trade licence, VAT TRN and Corporate Tax registration
- VAT tax periods and financial year end
- Last financial statements, if any
Access
- Adviser access to Zoho Books, Xero, QuickBooks, Odoo or your ERP
- Bank feeds or statements for every account
- Payment gateway, marketplace and payroll (WPS) reports
Month to month
- Sales invoices, purchase invoices and receipts
- Contracts for significant customers, suppliers and leases
- Notes on anything paid personally for the business, or taken from it
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Books kept only for VAT
Cash-basis spreadsheets without accruals, fixed assets or gratuity provisions don’t produce IFRS statements. They have to be rebuilt at year end, at more cost and risk.
- Mistake 02
Mixing owner and company spending
Personal costs paid by the company aren’t deductible for Corporate Tax and distort the VAT return. Unrecorded, they also muddy related-party balances.
- Mistake 03
Missing the reverse charge on foreign subscriptions
Online advertising and software bought from overseas suppliers usually falls under the reverse charge. Coding it as “no VAT” leads to incorrect returns.
- Mistake 04
No provision for end-of-service gratuity
Gratuity builds up with each employee’s service. Ignoring it overstates profit and leaves a liability to fund when staff leave.
- Mistake 05
Losing records too soon
Corporate Tax records must be kept for at least 7 years. Cancelling a software subscription or losing an employee’s files can take records with them, and failing to keep records carries penalties.
Worth knowing
The limits, stated upfront.
We rely on the records and explanations you give us. Bookkeeping is not an audit.
Filing VAT returns is covered by our Tax Filing service, and the Corporate Tax return by our Corporate Tax service, unless we agree to include them here.
Running payroll and making WPS salary transfers are not included unless agreed separately.
We help prepare your data for e-invoicing, but the e-invoices themselves go through an accredited service provider you appoint.
Questions
Bookkeeping: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionDoes a small company need IFRS books?
For Corporate Tax, financial statements are prepared under IFRS, or IFRS for SMEs where revenue is AED 50 million or less. Businesses with revenue of AED 3 million or less may use the cash basis, but accruals-based books are usually more useful and often expected by banks.
Which software should I use?
Zoho Books, Xero, QuickBooks and Odoo are all widely used in the UAE and handle VAT. The right choice depends on your volume, your bank, e-commerce integrations and who else needs access, and if you already have history in one it is often simplest to stay.
Can my books be kept in US dollars?
Your books can use another functional currency where IFRS supports it, but VAT and Corporate Tax returns are in AED. Amounts are converted at the Central Bank of the UAE’s rates, which we build into the monthly process.
How long do I need to keep records?
At least 7 years after the end of the tax period for Corporate Tax, and at least 5 years for VAT, with longer periods for some real estate records. Keep invoices, contracts, bank statements and working papers, not just the ledger.
Can you keep my books if I live outside the UAE?
Yes. The work happens in cloud software and questions are handled by email or video call. UAE record-keeping rules apply to the company wherever its owners live.
Do I need to change anything for e-invoicing?
Probably. Customer and supplier records need accurate TRNs and addresses, and your software must connect to an accredited service provider. Starting the clean-up in the books now makes go-live much simpler.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about bookkeeping.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com
