Accounting Software in the UAE: What the FTA Register Really Means

Frequently asked questions

• Zoho Books or Xero for a UAE business?

  Both are on the FTA register at the time of writing, so the difference is practical rather than official. On their own UAE pages, Zoho prices in dirhams and markets direct VAT filing to the tax portal, while Xero prices in US dollars and described VAT return mapping as coming soon when we checked. That is vendor page feature status, not a judgment about either product, and both change often. Run your own VAT return in a trial of each before deciding.

• Which accounting software is FTA approved in the UAE?

  The Federal Tax Authority publishes a Tax Accounting Software Register, and several well known products appear on it. Treat that as a starting point, not an answer. Listing is voluntary for vendors, the vendor declares that its software meets the guidelines, and each listing is tied to a named version with an expiry date. Search the register yourself for the exact product and version you are about to buy, on the day you decide, rather than trusting a badge on a marketing page.

• Is Zoho Books on the FTA software register?

  When we searched the register at the time of writing, Zoho Books appeared with a listed version and a valid until date a few months ahead. That reflects what the register showed on the day we looked, and listings change as versions are renewed or lapse. Check the register directly before you rely on it. Being listed also does not mean the Federal Tax Authority has certified that the product will keep your books compliant for you.

• Is QuickBooks on the FTA software register?

  When we searched the register by product name at the time of writing, we did not find a QuickBooks entry. That is a snapshot of one search on one day, not a permanent state, and the register does change. It is also not a compliance problem for a business that uses QuickBooks, because listing is voluntary for the vendor and is not a legal requirement for you. If this matters to your decision, search the register yourself.

• Does my accounting software have to be FTA accredited for me to use it legally?

  No. The register is a voluntary vendor programme, not a mandatory certification for businesses. Your legal duties are to keep proper records, issue compliant tax invoices, and file accurate returns on time. Those duties sit with your business whatever software produces the numbers. Choosing a listed product may give you some comfort, but it does not transfer any obligation to the vendor. Confirm your own position with a qualified accountant or with the Federal Tax Authority.

• What does the FTA software accreditation involve for a vendor?

  According to the Federal Tax Authority guidance, a vendor submits a written declaration that its software meets the published requirements, and once approved it pays a one time accreditation fee of AED 10,000, which is unrelated to the late registration penalty of the same amount and appears on the register. The listing names a specific software release and carries a valid until date, so it lapses unless the vendor renews. It is a self declared, fee based listing rather than an independent audit of the product.

• At what revenue do I have to register for VAT in the UAE?

  Registration becomes mandatory once your taxable supplies and imports exceed AED 375,000 across the previous twelve months, or when you expect to exceed that figure in the next thirty days. It is a rolling test, not a financial year test, which is why businesses that grow quickly can cross the line without noticing. Different rules apply to foreign businesses. Confirm your own position with the Federal Tax Authority or a registered tax agent before you act.

• Can I register for VAT before I reach the mandatory threshold?

  Yes. Voluntary registration is available once your taxable supplies, imports, or taxable expenses exceed AED 187,500 in the same twelve month window, or you expect them to in the next thirty days. Some businesses register voluntarily because their customers expect a Tax Registration Number on invoices, or because they want to recover input VAT on early spending. It also means filing returns from that point, so weigh the admin against the benefit.

• What must a UAE tax invoice show?

  A full tax invoice shows the words Tax Invoice, your name, address and Tax Registration Number, the customer name, address and number where they are registered, a sequential invoice number, the issue date and the supply date where they differ, a description of what was sold, and per line unit price, quantity, tax rate and amount. It also shows any discount, the gross amount payable in dirhams, and the conversion where the supply was in another currency.

• When can I issue a simplified tax invoice instead?

  A simplified tax invoice is allowed where the customer is not registered for VAT, and where the customer is registered but the consideration for the supply does not exceed AED 10,000. It still has to show the words Tax Invoice, your name, address and Tax Registration Number, the date of issue, a description of what was sold, and the total consideration with the tax charged. Most counter sales in a shop fall into this category.

• How long do I have to keep my accounting records in the UAE?

  You must keep and retain proper records, including your transactions, assets, liabilities, tax invoices and credit notes. The exact retention period is set in law rather than left to you, and different periods can apply to different categories of record. We are deliberately not quoting a figure here, because we could not confirm one against a readable government source. Confirm the period that applies to your records with the Federal Tax Authority or a registered tax agent.

• Do I have to register for Corporate Tax even if I make no profit?

  Yes, if your business is a company. All juridical persons must register for Corporate Tax and obtain a registration number regardless of revenue or profit. Only natural persons running a business have a threshold, and they must register once turnover from business activity exceeds AED 1,000,000 in a calendar year, excluding salary, personal investment income and real estate investment income. Registration and paying tax are two separate things, and many registered businesses owe nothing.

• What is the Corporate Tax rate for a small UAE business?

  The rate is zero per cent on taxable income up to AED 375,000 and nine per cent on taxable income above that figure. Taxable income is calculated after allowable deductions, so it is not the same as revenue. Free zone businesses have their own rules for qualifying income that are worth checking separately. Your accountant should confirm how the calculation works for your specific structure, because the arithmetic sits well outside what accounting software decides for you.

• Is the VAT threshold the same as the Corporate Tax threshold?

  No, and this trips up a lot of owners. Both figures happen to be AED 375,000, but they test completely different things. The VAT figure is a revenue test on taxable supplies and imports, and crossing it forces you to register for VAT. The Corporate Tax figure is a profit test, and it is the line between the zero per cent band and the nine per cent band. One is about turnover, the other is about taxable income.

• What is Small Business Relief and does it remove the need to register?

  Small Business Relief lets a resident taxable person with revenue below AED 3,000,000 in the current and prior tax periods elect to be treated as having no taxable income for that period. It does not remove the duty to register for Corporate Tax. You register first, then elect the relief on your return. It is not open to qualifying free zone persons or members of multinational enterprise groups. Check the current scope with the Federal Tax Authority.

• What is the penalty for registering late for Corporate Tax?

  The Federal Tax Authority publishes an administrative penalty of AED 10,000 for late Corporate Tax registration. Penalty schedules are amended from time to time, so check the current amounts on the Federal Tax Authority website rather than relying on any summary, including this one. The practical point for a software decision is smaller than it sounds: no product registers you. Registration is an administrative step you or your accountant take on the tax portal.

• Can I keep running my books on Excel?

  There is no rule that forces you off a spreadsheet at a specific point. The trigger is practical rather than legal. Watch for time lost to reconciliation, VAT calculations done by hand, no audit trail showing who changed what, a single file that only one person understands, and difficulty producing a clean report when someone asks for one. When two or three of those are true, the software cost is usually less than the hours you are spending.

• Do I still need an accountant if I buy accounting software?

  Most UAE businesses use both. Software automates data entry, bank matching, categorisation and report generation, and some products generate the VAT return for you. It does not exercise judgment on how a transaction should be classified, whether a reconciliation actually balances for the right reason, or whether a return is correct before it is submitted. Treat the software as the record and the accountant as the review. Sign off on filings should sit with a qualified person.

• Which product actually files my VAT return rather than just calculating it?

  This differs sharply by vendor and it changes, so verify it live. Zoho markets direct VAT return filing to the tax portal from inside Zoho Books. Xero, on its own UAE page at the time of writing, describes mapping to tax ready VAT returns as a feature coming soon. Tally markets VAT 201 filings available directly from TallyPrime. Ask each shortlisted vendor to walk through your own return end to end in a demo.

• How much does Zoho Books cost in the UAE?

  Zoho publishes UAE pricing in dirhams. There is a free tier for one user plus an accountant, and paid plans start from around AED 69 a month billed monthly, or around AED 60 a month billed annually, rising through higher tiers as users and features increase. Inventory, sales and purchase orders, and multi currency sit on the Professional tier and above. Prices are shown exclusive of local taxes. Check the current figures on the vendor page before budgeting.

• How much does QuickBooks Online cost in the UAE?

  Intuit publishes UAE plans starting from around AED 77 a month at standard rates, rising through higher tiers. Two things on that page matter more than the headline. The prices shown on a first visit are a heavy introductory discount for the first months, and the standard rate applies after that. The page also states that prices are displayed in dirhams but billing is processed in US dollars, so your actual charge moves with the exchange rate.

• How much does Xero cost in the UAE?

  Xero prices its UAE plans in US dollars rather than dirhams, with a low cost entry plan and standard plans from around 29 US dollars a month upward depending on tier. The page advertises a large discount for the first three months, so the number you see first is not the ongoing rate. Budget on the standard figure. Also check the current state of the UAE VAT features on the same page, because parts of it were described as coming soon.

• How much does TallyPrime cost in the UAE?

  Tally sells TallyPrime in the region as a one time perpetual licence rather than a subscription. The single user Silver edition is priced at AED 2,340 and the multi user Gold edition at AED 7,020, each including one year of Tally Software Services for updates and support, with renewal needed after that. That is a different commercial model from the cloud products, so compare total cost over three or four years rather than comparing a licence against a monthly fee.

• Is Odoo accounting free?

  Odoo publishes a free tier that runs a single app with unlimited users, and accounting can be that single app. The paid plans do not sell accounting on its own. They bundle every app for one per user fee, so a buyer who only wants accounting either stays on the free single app tier or pays for the whole suite. Odoo pricing also varies by region and by promotional period, so confirm the current figures on the vendor page.

• Why does the price change every time I check a vendor page?

  Because several vendors run rotating introductory offers on top of a higher standard rate. Discounts covering the first three, six or twelve months are common, and the discounted figure is usually the one shown largest. Some pages also display dirhams while billing in another currency, which adds a second layer of movement. Before you compare products, write down the standard rate for each, the billing currency, and the point at which the discount ends.

• What should a setup and migration project cost in the UAE?

  A focused engagement to set up accounting software properly starts from around AED 3,500 with us. That covers the chart of accounts, tax codes, opening balances, customer and supplier master data, invoice templates that carry the required fields, and training for the people who use it daily. Adding integrations, multiple entities, or several years of transaction history moves it up from there. Final pricing depends on scope and is confirmed after a short discovery conversation.

• What is the difference between accounting software and an ERP?

  Accounting software runs the books: invoices, bills, banking, the ledger, and tax reporting for one company. An ERP includes accounting and extends into the operations around it, covering inventory, purchasing, sales orders, manufacturing and sometimes payroll and projects, all sharing one set of data. If your only pain is bookkeeping, accounting software is the cheaper and faster answer. ERP earns its cost when other departments need to work from the same live numbers.

• What signals mean I have outgrown accounting software?

  Four signals come up repeatedly. Stock levels and stock valuation living in a separate system that someone reconciles to the ledger by hand. Multiple entities or branches that need consolidating. Manufacturing, where bills of materials and work orders have to drive costing. And project based work, where you need job costing and project profitability rather than a general ledger view. One of these is worth reviewing. Two or more usually means an ERP conversation.

• Do I need Arabic or bilingual invoices?

  It depends on your customers and, in some cases, on what a government or large corporate buyer asks for on their supplier documents. Some products market bilingual Arabic and English invoice templates directly. Others make no claim either way on their UAE pages, so treat it as an open question and check on a demo. Do not assume a global product handles it. Ask the vendor to show you a rendered bilingual invoice during the demo, using your own template, rather than accepting a line on a feature list.

• How do I move off a desktop package without losing my history?

  Decide what history you genuinely need first. Most businesses migrate opening balances plus open invoices and open bills, and keep the old system readable in archive for reference rather than moving years of transactions. Map the old chart of accounts to the new one before anything moves, because that shapes every report afterwards. Clean duplicate customers, suppliers and item codes on the way, then run both systems side by side until the numbers agree.

• Should I connect my accounting software to my point of sale or online store?

  Usually yes, once volume makes manual entry unreliable. The payoff is that sales, tax amounts and payment settlements land in the ledger without retyping, which is where errors and missing invoices tend to come from. Most modern products offer native connections to common platforms. Where a native connection does not exist, a standard integration between two systems that both have working interfaces starts from around AED 1,500 with us, depending on the mapping involved.

• What about UAE electronic invoicing?

  The UAE is introducing a national electronic invoicing system, which in practice means invoices are issued and exchanged as structured electronic data rather than as PDFs or paper. That is a direct requirement on whatever software produces your invoices. We are not quoting dates, phases or penalties here, because the scope and timing are set by the Ministry of Finance and are being introduced in stages. Check the Ministry of Finance directly for what applies to your business.

• Does a free zone company need different accounting software?

  We could not confirm a separate legal record keeping rule based on licence type on a government source, so we are not going to claim one. The general VAT and Corporate Tax obligations apply either way. Free zone businesses do have their own Corporate Tax treatment for qualifying income, which affects how your accountant reports rather than which product you buy. Confirm your own position with the Federal Tax Authority or a qualified accountant.

• What should I test during a software demo?

  Bring your own data and your own worst case. Ask the vendor to raise a compliant tax invoice with your template, run a bank reconciliation on a real statement, produce a VAT return from your own numbers, and show what happens at the filing step rather than stopping at the report. Then ask what the product does not do well for a UAE business. A vendor who answers that question honestly is usually worth shortlisting.

• How long does it take to switch accounting software?

  For a small business moving to a cloud product with clean data and a single entity, a few weeks is realistic: configuration, opening balances, master data, templates, then a short parallel run. What stretches it is messy source data, a chart of accounts nobody has reviewed in years, and open items that do not agree between systems. The safest timing is straight after a completed tax period, so you are not migrating in the middle of a return.

• Do I need a UAE based implementer, or can I do it myself?

  Plenty of small businesses configure a cloud product themselves, and some vendors design for exactly that. Where outside help earns its cost is the chart of accounts design, tax code setup, opening balances that actually tie back, migration of dirty master data, and connecting the accounting system to whatever else you run. Those are the parts that quietly decide whether the numbers can be trusted six months later. Ask for evidence of comparable UAE work.