UAE accounting and tax glossary

TRN means Tax Registration Number: the number the FTA issues on VAT registration. Where it must appear, why customers check it, and how HelloBooks uses it.

VAT 201 is the FTA form a UAE registrant files each tax period to report output VAT, input VAT and the net amount, due 28 days after the period ends.

The FTA is the Federal Tax Authority, which administers VAT, excise tax and corporate tax in the UAE. What it does and how businesses deal with it.

EmaraTax is the FTA’s online platform for tax registration, returns, payments and refunds in the UAE. What you do there and how to prepare for it.

A tax invoice is the VAT document a UAE registrant must issue within 14 days of a taxable supply. How it differs from an ordinary invoice and why it matters.

Reverse charge means the buyer accounts for VAT instead of the seller. When it applies in the UAE, how it shows on the return and why the net is often nil.

A Designated Zone is a fenced area that meets customs conditions and is treated as outside the UAE for certain VAT purposes. It is not the same as a free zone.

Input tax is the VAT a UAE business pays on its purchases and imports. When it can be recovered, what blocks it, and how it reduces the VAT you pay.

Output tax is the VAT a UAE registrant charges on its taxable sales and owes to the FTA. When it becomes due, how it is reported and how it is corrected.

A taxable supply is a sale of goods or services that carries VAT at 5% or 0% in the UAE. Why the term drives registration, recovery and the VAT return.

A Qualifying Free Zone Person is a free zone entity that meets Article 18 conditions and pays 0% corporate tax on Qualifying Income. The conditions explained.

Small business relief lets resident businesses with revenue up to AED 3 million be treated as having no taxable income, for periods ending by 31 Dec 2029.

Taxable person means different things under UAE VAT and corporate tax. Both definitions, who falls within them, and why the difference matters.

A permanent establishment is a fixed place or dependent agent through which a foreign business operates in the UAE, making it liable to UAE corporate tax.

The arm’s length principle requires related-party deals to be priced as if between independent parties. How UAE corporate tax applies it and the methods.

An ASP is a provider accredited by the Ministry of Finance to exchange UAE e-invoices and report tax data to the FTA. Deadlines to appoint one and choosing.

Peppol is an international standard for exchanging e-invoices. How the UAE e-invoicing programme refers to it, PINT AE, and what a business needs to know.

The UAE five-corner e-invoicing model: supplier, supplier ASP, buyer ASP, buyer and the reporting corner. How an invoice travels and what each corner does.

In UAE law an electronic invoice is a structured invoice issued, transmitted and received electronically. Why a PDF does not count, and the dates that apply.

A tax group lets related UAE companies be treated as one taxpayer. The VAT and corporate tax versions differ: control at 50% versus ownership at 95%.

WPS is the UAE Wage Protection System that private sector employers registered with MOHRE use to pay salaries through approved banks and exchange houses.

End of service gratuity is the lump sum a UAE private sector employer pays on termination: 21 days’ basic salary a year for five years, then 30 days.

A trade licence is the permit that lets a UAE business operate. Who issues it on the mainland and in free zones, the main licence types, and why it matters.

A mainland company is licensed by an emirate’s economic department rather than a free zone. Legal forms, setup requirements and the tax points to know.

A free zone company is licensed by one of the UAE’s 37 free zone authorities. Company types, how VAT and corporate tax apply, and common misconceptions.