E-commerce & Trading Accounting & Tax in Dubai (UAE)

Our Dubai e-commerce and trading accounting services are built for businesses that buy and sell goods:

• Direct-to-Consumer (DTC) Brands: Brands using Shopify or other platforms to sell to customers in the UAE and internationally from a Dubai-based entity.
• Amazon FBA & Noon Sellers: Businesses leveraging regional marketplaces, requiring careful tracking of marketplace fees, inventory, and payouts.
• Import/Export Trading Companies: Businesses based in free zones like JAFZA or Dubai CommerCity that import goods, store them in the UAE, and re-export them to other markets.
• International Brands Using Dubai as a Hub: Foreign companies that have established a UAE free zone company to manage their regional distribution and logistics.

From your first shipment, accurate financial tracking is key. Specialized e-commerce accounting becomes non-negotiable when:

• You Import Goods into the UAE: This immediately triggers the need to manage customs declarations and account for import VAT, which can often be recovered.
• You Cross the VAT Registration Threshold: Once your taxable supplies in the UAE exceed AED 375,000 in a 12-month period, you must register for VAT and begin filing quarterly returns.
• You Hold Inventory: Properly accounting for the Cost of Goods Sold (COGS) is fundamental to understanding your true profit margin on each product sold.
• You Sell on Multiple Channels: Reconciling sales, fees, and payouts from your own website, Amazon, and other marketplaces becomes a complex task requiring specialized software and expertise.
• You Seek Financing: Banks and investors will require detailed financial statements, including an accurate inventory valuation and gross margin analysis, before providing capital.

Outsourcing e-commerce accounting is a critical investment in compliance and profitability. Costs in Dubai are based on transaction volume and complexity.

• Small Stores / Single Channel: AED 2,000 - AED 4,500 per month. This covers bookkeeping, VAT return filing, and reconciliation for one sales channel.
• Growing Brands / Multi-Channel: AED 4,500 - AED 10,000 per month. This typically includes management of more complex inventory and reconciliation across multiple platforms.
• Large-Scale Traders: Custom pricing starting at AED 10,000+, often involving advanced inventory management systems and strategic advice on supply chain and customs.

The e-commerce and trading sector in Dubai has specific compliance risks that can lead to significant financial penalties:

• VAT Non-Compliance: The biggest risk. Failure to register for VAT when required, or filing incorrect returns, can lead to substantial penalties from the FTA.
• Incorrect Customs Valuation: Improperly declaring the value of imported goods can lead to fines and delays at customs.
• Inaccurate COGS and Inventory Accounting: Incorrectly valuing inventory and calculating Cost of Goods Sold leads to a flawed profit figure, which can result in overpaying Corporate Tax.
• Corporate Tax for Mainland Sales: Free zone trading companies must be extremely careful. Selling goods to UAE Mainland customers can create 'non-qualifying income', making profits subject to the 9% Corporate Tax rate.

E-commerce finance is a niche specialization. Most general accountants lack the specific knowledge to handle multi-channel inventory, VAT on imported goods, and the complex fee structures of modern marketplaces. Hiring a full-time e-commerce finance expert is often too expensive for a growing business.

Outsourcing to YourLegal's e-commerce finance team provides a cost-effective, expert solution. We utilize specialized software to automate VAT tracking and reporting, integrate with your inventory systems (like A2X), and accurately reconcile your sales data. This ensures you are always compliant with the FTA, have a clear view of your product-level profitability, and can make data-driven decisions on pricing, marketing, and inventory management.