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IFRS Accounting & Electronic Invoicing for the United Arab Emirates

CassKai is the financial copilot for SMEs established in Dubai, Abu Dhabi and across the Emirates: IFRS-compliant accounting, VAT returns (VAT 201) on EmaraTax, Corporate Tax tracking, Dirham management and real-time cash monitoring. Built for both mainland and free zone companies.

~11M

Population

~535 Md $

Nominal GDP

5%

Standard VAT Rate

#1

Gulf Business Hub

Currency: Dirham des Émirats (AED) VAT: 5% Standard: IFRS

Regulations

IFRS Standards (accounting framework)

In the United Arab Emirates, financial statements are prepared under IFRS (full IFRS, or IFRS for SMEs for smaller entities). The framework mandates a 7-class chart of accounts, a Current/Non-current split in the balance sheet, and the production of full financial statements: Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flows and Statement of Changes in Equity.

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5% VAT and VAT 201 return (FTA / EmaraTax)

Introduced on 1 January 2018, UAE VAT applies at a standard rate of 5%, with a 0% rate (exports, healthcare, education, first supply of new residential property) and an exempt regime (certain financial services, residential property leasing, local passenger transport). Registration is mandatory above AED 375,000 of taxable supplies over 12 months and voluntary above AED 187,500. Returns are filed via the VAT 201 form on the Federal Tax Authority (FTA) EmaraTax portal, generally on a quarterly basis.

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Corporate Tax (9% corporate income tax)

Corporate income tax applies to financial years starting on or after 1 June 2023. The rate is 0% up to AED 375,000 of taxable profit, then 9% above that threshold. "Qualifying Free Zone Persons" may benefit from a 0% rate on their qualifying income, subject to meeting the conditions set by the regulations. CassKai helps track the taxable base and provision for the tax charge.

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Free zones (DIFC, ADGM, DMCC) and mainland licence (DED)

The UAE has more than 40 free zones (DMCC, JAFZA, Meydan, IFZA...). DIFC (Dubai) and ADGM (Abu Dhabi) are financial centres with their own common-law framework. Mainland companies operate under a licence issued by the Department of Economic Development (DED). Each company is identified by its Trade License (DED or free zone authority), to be quoted on commercial and tax documents.

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E-invoicing

Peppol PINT AE (DCTCE)

The e-invoicing programme of the UAE Ministry of Finance is based on a 5-corner Peppol model, known as "DCTCE" (Decentralized Continuous Transaction Control and Exchange), relying on Accredited Service Providers (ASPs) and reporting sent to the Federal Tax Authority. The timeline is being rolled out: pilot and voluntary phases are planned from 2026, followed by a phased B2B/B2G generalisation, according to the schedule published by the Ministry of Finance. CassKai has anticipated this framework with a Peppol PINT AE connector ready in sandbox.

Tax Specifics

Taxation in the United Arab Emirates

  • VAT: Standard rate of 5% since 1 January 2018. 0% rate (exports, healthcare, education, first supply of new residential property) and exempt regime (certain financial services, residential property leasing, local passenger transport).
  • VAT registration: Mandatory above AED 375,000 of taxable supplies over 12 months, voluntary above AED 187,500. The TRN (Tax Registration Number, 15 digits) must appear on all invoices.
  • VAT 201 return: Filed on the Federal Tax Authority (FTA) EmaraTax portal, generally on a quarterly basis; monthly for large taxpayers (turnover above AED 150M).
  • Corporate Tax: For financial years starting on or after 1 June 2023, 0% up to AED 375,000 of taxable profit, then 9% above. "Qualifying Free Zone Persons" may benefit from a 0% rate on their qualifying income, subject to conditions.
  • Free zones: More than 40 free zones (DMCC, JAFZA, Meydan, IFZA...). DIFC (Dubai) and ADGM (Abu Dhabi) have their own common-law framework; the mainland operates under a DED licence.
  • Currency and time zone: The Dirham (AED) is pegged to the US dollar (≈ 3.6725 AED/USD), with 2 decimals and an Anglo-Saxon format (1,234.56). Time zone Asia/Dubai (UTC+4), weekend Saturday-Sunday.

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Frequently Asked Questions

What is the VAT rate applicable in the United Arab Emirates?

UAE VAT applies at a standard rate of 5% since 1 January 2018. A 0% rate covers exports, healthcare, education and the first supply of new residential property, while an exempt regime applies to certain financial services, residential property leasing and local passenger transport. CassKai natively handles these treatments (5%, 0% and exempt) and automatically applies the chosen rate at invoicing.

How does CassKai help prepare the VAT 201 return on EmaraTax?

CassKai automatically prepares the elements needed for the VAT 201 form (5% output VAT, 0% supplies, exempt supplies, input VAT on purchases, adjustments) from your accounting entries. Amounts are organised according to the boxes expected by the Federal Tax Authority, ready to be reported or entered on the EmaraTax portal. The default frequency is quarterly, and monthly for large taxpayers.

Is a free zone company affected by the 9% Corporate Tax?

Corporate Tax applies to financial years starting on or after 1 June 2023, at a rate of 0% up to AED 375,000 of taxable profit and 9% above. Free zone companies may, subject to meeting the "Qualifying Free Zone Person" conditions set by the regulations, benefit from a 0% rate on their qualifying income. As these conditions are technical and may change, we recommend validating your situation with your tax advisor; CassKai helps you track the taxable base and provision for the corresponding tax charge.

Is electronic invoicing already mandatory in the United Arab Emirates?

The Ministry of Finance e-invoicing programme is based on a 5-corner Peppol model ("DCTCE") via Accredited Service Providers, with reporting to the Federal Tax Authority. Its timeline is being rolled out: pilot and voluntary phases are planned from 2026, followed by a phased B2B/B2G generalisation, according to the schedule published by the Ministry of Finance. CassKai has anticipated this framework with a Peppol PINT AE connector ready in sandbox, so that your business is operational as soon as the obligations affecting it come into force.

Does CassKai handle the Dirham (AED) and IFRS-compliant accounting?

Yes. CassKai natively uses the UAE Dirham (AED) as the bookkeeping currency, with 2 decimals and the Anglo-Saxon format (1,234.56), the Dirham being pegged to the US dollar (≈ 3.6725 AED/USD). Accounting is kept under IFRS, with a 7-class chart of accounts, the Current/Non-current split and the generation of IFRS financial statements (Statement of Financial Position, Statement of Comprehensive Income, Cash Flows, Changes in Equity). Foreign currency operations are handled with exchange difference calculation.

Why choose CassKai to run a business in Dubai or the UAE?

CassKai brings together in a single tool everything a UAE SME needs: native IFRS accounting, Dirham management, 5%/0%/exempt VAT, VAT 201 return preparation for EmaraTax, Corporate Tax tracking, the UAE tax calendar, an anticipated Peppol PINT AE e-invoicing connector and an interface available in Arabic with RTL display. Beyond bookkeeping, CassKai adds a real-time cash steering dimension (treasury, collections, forecasts) that is particularly useful in a business environment as dynamic as the Gulf. Everything can be configured for both mainland and free zone companies.

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