E-commerce accounting and VAT in the UAE
Marketplaces and payment providers pay out what is left after fees, refunds and reserves, so the bank never shows what you actually sold. We set up books that start from sales: every payout reconciled to its orders, VAT on the right figure, and stock counted wherever it sits.
- PayoutsReconciled to orders
- Fees · refundsBy channel
- VAT · CTReturns to the FTA
Online sellers on any mix of channels
Online store on Shopify or its own site
Card payments through a provider such as Stripe, Network International or Telr, instalments through Tabby or Tamara. Each one pays out on its own schedule, net of its own fees.
Seller on Amazon.ae and Noon
The marketplace collects the money, deducts fees, refunds and reserves, and pays out the rest. The bank shows one net amount; the sales behind it live in the settlement reports.
D2C brand on Instagram and WhatsApp
Orders arrive in messages and are paid by payment link or bank transfer. Without a system, some payments are never matched to an order, and some orders are never paid.
Brand with stock in fulfilment warehouses
Goods sit in a marketplace warehouse, not yours, but they are still your inventory. They have to be counted and reconciled like any other stock.
Brand importing its own products
Goods bought from manufacturers abroad come with import VAT, customs duty and freight, and their full cost has to be known before the margin on each order means anything.
Books built from sales, not from the bank
From the order to the VAT return: every channel and every payout accounted for.
- Bookkeeping in Zoho Books, QuickBooks or Xero, with sales, fees and refunds by channel
- A clearing account for each marketplace and payment provider, so every payout is matched to its orders, fees, refunds and reserves
- Marketplace and provider fees booked as expenses, with input VAT recovered where there is a valid tax invoice to your TRN
- Stock records for your own warehouse and marketplace fulfilment centres, reconciled to counts and inventory reports
- Full cost of imported goods, with freight and duty, and margin by product and channel
- VAT registration and quarterly returns: 5% on UAE sales, import VAT under the reverse charge, zero-rated exports with evidence
- Corporate Tax registration and the annual return
- Monthly owner's report: sales, fees, payouts and margin by channel
- Payroll through WPS once you have staff on company visas
Every channel on one page
A sample monthly summary for an online brand selling on four channels. The figures are illustrative.
| Channel | Gross sales | Fees | Refunds | Payout | Status |
|---|---|---|---|---|---|
| Amazon.ae | 148,000 | 21,900 | 9,600 | 116,500 | 8,000 held in reserve |
| Noon | 96,000 | 13,100 | 7,200 | 75,700 | Due 7 November |
| Own site (Shopify) | 84,000 | 2,650 | 3,100 | 78,250 | Received |
| Instagram and WhatsApp | 32,000 | 1,000 | 0 | 31,000 | 2,400 not received |
What an online seller should know about UAE tax
VAT at 5% on sales to UAE customers
Registration is mandatory once taxable supplies over 12 months exceed AED 375,000, or are expected to within 30 days; voluntary registration is possible from AED 187,500. Sales on all channels count towards the threshold together.
VAT follows the sale, not the payout
A marketplace deducts its fees before paying you, but the fee does not reduce the sale: it is a separate expense. A VAT return built from what reached the bank understates sales.
Input VAT on fees
Marketplace and payment provider fees are a business expense. Their VAT is recoverable when the provider issues a valid tax invoice to your TRN, so it pays to make sure your TRN is in your seller account.
Imported stock and exports
Stock you import is subject to import VAT, accounted for in the VAT return under the reverse charge. Orders shipped outside the GCC are zero-rated if export evidence is obtained within 90 days.
Corporate Tax for the whole business
Every company registers for Corporate Tax and files a return, even with no profit. Profit above AED 375,000 is taxed at 9%; with revenue up to AED 3 million, Small Business Relief can be elected for tax periods ending on or before 31 December 2026.
From payouts to a clear picture
The price depends on volume, not on the industry
Monthly bookkeeping from AED 700; a full finance function with VAT and payroll from AED 2,000 a month. We quote an exact price after reviewing your channels and order volume.
Questions online sellers ask
Does an online store need to register for VAT in the UAE?
Yes, once taxable supplies over the last 12 months exceed AED 375,000, or are expected to within the next 30 days. Sales on all channels count together: your own site, marketplaces and social media. Voluntary registration is possible from AED 187,500.
Is VAT calculated on the marketplace payout or on the sale price?
On the sale. The payout is what remains after the marketplace or payment provider deducts fees, refunds and reserves, and fees are a separate expense. Books built only from bank receipts understate sales and the VAT on them. We prepare returns from sales as part of our VAT service.
Can I recover VAT on Amazon and Noon seller fees?
Yes, when the marketplace issues a valid tax invoice to your TRN: the fees are a business expense and their VAT is input VAT. We check that fee invoices carry your TRN and match the settlement reports.
How do you reconcile Shopify, Stripe and Tabby payouts with sales?
Each provider gets its own clearing account. Orders go in at the full price, fees and refunds go out as separate lines, and the payout that reaches the bank should bring the account back to zero. Whatever is left is a reserve, a missing payment or an error, and we find out which.
Is stock in an Amazon or Noon fulfilment warehouse still my inventory?
Yes. Goods in a fulfilment warehouse are yours until they are sold, so they stay in your books and have to be counted. We reconcile the marketplace inventory reports to your records every month.
Do I charge VAT on online orders shipped abroad?
Orders exported outside the GCC are zero-rated, provided export evidence, such as customs exit documents, is obtained within 90 days. Shipments to other GCC countries need a separate review.
How much does accounting cost for an online store?
It depends on the number of orders, channels and transactions a month, not on the industry: from AED 700 for monthly bookkeeping, from AED 2,000 for a full finance function with VAT and payroll. We count the real volume before we start so the price holds from the first month.