Accounting and bookkeeping requirements in the UAE: a 2026 guide

Every UAE business must keep proper books, and accounting and tax records should be kept for at least 7 years. Financial statements used for corporate tax are prepared under IFRS, or IFRS for SMEs for smaller businesses, and some businesses also need them audited. This guide covers what to record, how long to keep it, when an audit applies and what a sound monthly routine looks like.

Key points

• Keep accounting and tax records for at least 7 years. Real estate VAT records: 15 years.
• Financial statements follow IFRS. Businesses with revenue up to AED 50 million can use IFRS for SMEs.
• Businesses with revenue up to AED 3 million may use the cash basis of accounting.
• Audited statements are required for Qualifying Free Zone Persons and for revenue above AED 50 million, and often for free zone licence renewal.
• Failing to keep records carries penalties: AED 10,000 under the corporate tax rules, AED 20,000 for a repeat within 24 months.

What records you must keep

Your books need to show every transaction and support every figure in your tax returns. In practice, that means keeping:

• Sales records: tax invoices, credit notes, receipts and contracts.
• Purchase records: supplier invoices, credit notes and proof of payment.
• Bank records: statements for every account, card and payment platform.
• Import and export documents: customs declarations, shipping documents and proof of export for zero-rated sales.
• Payroll records: salary payments, employment contracts and end-of-service calculations.
• Assets: a fixed asset register with purchase invoices and depreciation.
• Stock records: quantities, costs and year-end counts, if you hold inventory.
• Ledgers and statements: the general ledger, trial balance and annual financial statements.
• Tax files: VAT returns and workings, corporate tax returns and workings, and all correspondence with the Federal Tax Authority (FTA).
• Related-party records: transactions with owners, directors and group companies, priced at arm's length.

How long to keep records

Record type	Minimum retention
Accounting and corporate tax records	7 years
VAT records, general rule	5 years
VAT records relating to real estate	15 years
Practical default for most businesses	7 years for everything; 15 years for real estate

The FTA can look back up to 15 years where there is tax evasion or a failure to register, so there is no benefit in deleting records early.

Which accounting standards apply

For corporate tax, financial statements are prepared under International Financial Reporting Standards (IFRS):

Annual revenue	Standard you can use
Up to AED 3 million	Cash basis allowed, or accrual under IFRS for SMEs
Up to AED 50 million	IFRS for SMEs or full IFRS
Above AED 50 million	Full IFRS, audited

On the accrual basis, you record income when you earn it and expenses when you incur them, not when cash moves. It gives a truer picture but needs more work at month end. The cash basis is simpler and suits many freelancers and very small businesses.

When audited financial statements are required

Situation	Audit required?
Qualifying Free Zone Person (QFZP)	Yes, for corporate tax
Taxable person with revenue above AED 50 million	Yes, for corporate tax
Free zone licence renewal	Often, depending on the free zone
Mainland LLC	Company law generally requires an auditor to be appointed; banks and investors may also ask
Business using Small Business Relief	Not for corporate tax, though other rules may apply

An audit has to be carried out by an independent registered auditor. See our audit report service for how we prepare your books and your audit report with an approved audit firm.

Accounting and bookkeeping: the difference

The two words are often used interchangeably, but they cover different work.

Bookkeeping is the day-to-day recording:

• Entering sales, purchases and expenses
• Matching payments to invoices
• Reconciling bank and card accounts
• Keeping the ledger up to date

Accounting builds on the books:

• Month-end and year-end adjustments, such as accruals, prepayments and depreciation
• Preparing financial statements under IFRS
• VAT and corporate tax calculations
• Management reports and analysis for decisions

Most SMEs need both. Bookkeeping keeps the records current, and accounting turns them into reports and returns. Our bookkeeping service in Dubai covers the first; our accounting service covers both.

Monthly bookkeeping checklist

Work through this list every month and year end becomes much easier.

1. Record all sales invoices and credit notes.
2. Record all supplier bills and expense receipts.
3. Reconcile every bank account, card and payment platform to its statement.
4. Reconcile petty cash.
5. Review who owes you money and follow up overdue invoices.
6. Review what you owe and schedule payments.
7. Post the payroll journal and update the end-of-service gratuity accrual.
8. Post depreciation, accruals and prepayments.
9. Check VAT codes on every transaction and reconcile the VAT control account.
10. Update stock records, if you hold inventory.
11. Review the monthly profit and loss and balance sheet for anything unusual.
12. File and back up all supporting documents.

Quarterly

• Prepare and submit the VAT return by the 28th day after the quarter ends.

Yearly

• Close the books and prepare financial statements.
• Arrange the audit if one is required.
• File the corporate tax return within 9 months of the year end, and elect Small Business Relief if you qualify.

Setting up the books for a new company

A new company is the easiest time to get record keeping right. In the first month:

• Open a business bank account and run every business payment through it.
• Choose accounting software and set up a chart of accounts that fits your activity.
• Record the opening position: share capital, set-up costs paid by the owners, licence fees and deposits.
• Agree a document routine. Decide who sends invoices and receipts, where they are stored and how often.
• Note your deadlines. Corporate tax registration within 3 months of incorporation, and VAT registration once taxable supplies pass AED 375,000.

Costs paid personally by the owners before the bank account opened should be recorded as owner loans or capital, with the receipts kept. These are easy to lose track of and often turn up later as unexplained balances.

How e-invoicing will change record keeping

From 1 January 2027 for businesses with revenue of AED 50 million or more, and 1 July 2027 for others (per current Ministry of Finance guidance), B2B and B2G invoices move to a structured e-invoicing system run through Accredited Service Providers. Invoice data will reach the FTA close to real time. That makes clean customer data, correct VAT codes and timely bookkeeping more important, because differences between your invoices and your VAT returns will be easier for the FTA to see.

Common gaps to fix

• Personal and business spending in one account. It makes reconciliation slow and deductions hard to support.
• Missing invoices. Without a valid tax invoice, input VAT can't be recovered.
• Unreconciled bank accounts. Errors hide until year end or an audit.
• Spreadsheet books. Hard to check, easy to break, and not ready for e-invoicing. Our accounting software and ERP service can help you move.

Get your books in order

You can read the record-keeping rules on the FTA website. To see what monthly bookkeeping and year-end accounts would cost for your business, get an instant estimate. For monthly books, financial statements and tax filings handled in one place, see our accounting service in Dubai.