UAE tax & accounting
terms, defined.

Accredited Service Provider (ASP)

A provider accredited by the UAE Ministry of Finance to validate, exchange and report e-invoices on behalf of businesses. Related service →

Agreed-Upon Procedures (AUP)

An engagement where specific procedures are performed on financial information and the findings reported, without an audit opinion. Related service →

Corporate Tax

UAE federal tax on business profits: 0% up to AED 375,000 of taxable income and 9% above that. Related service →

Electronic credit note

A credit note issued as structured data through an ASP, required in the same way as an e-invoice. Related service →

EmaraTax

The FTA's online portal for tax registration, returns, payments and refunds. Related service →

Exempt supply

A supply not subject to VAT, such as certain financial services and residential property, where related input VAT usually cannot be recovered. Related service →

Federal Tax Authority (FTA)

The UAE federal authority that administers VAT, Corporate Tax and excise tax and receives e-invoice data. Related service →

Five-corner model

The UAE e-invoicing flow: supplier, supplier's ASP, buyer's ASP, buyer, with both ASPs reporting to the FTA as the fifth corner. Related service →

IFRS

International Financial Reporting Standards, the accounting framework used for financial statements in the UAE. Related service →

In-Country Value (ICV)

A UAE programme that scores suppliers on their contribution to the local economy, used in government and ADNOC procurement. Related service →

Mandatory VAT registration threshold

AED 375,000 of taxable supplies and imports in the past 12 months, or expected in the next 30 days. Related service →

Peppol

An international network and set of standards for exchanging electronic business documents such as invoices. Related service →

PINT AE

The UAE specification of the Peppol International invoice format, based on UBL 2.1, defining mandatory e-invoice fields. Related service →

Qualifying Free Zone Person

A free zone entity meeting the conditions to apply 0% Corporate Tax to its qualifying income. Related service →

Reverse charge

A VAT mechanism where the buyer, not the supplier, accounts for VAT, for example on imported services. Related service →

Small Business Relief

A Corporate Tax election for resident businesses with revenue of AED 3 million or less, available for tax periods ending on or before 31 December 2026. Related service →

Tax Registration Number (TRN)

The 15-digit number the FTA issues to a business on VAT registration, shown on every tax invoice. Related service →

Transfer pricing

Rules requiring transactions between related parties to be priced as if between independent parties (arm's length). Related service →

Ultimate Beneficial Owner (UBO)

The individual who ultimately owns or controls a company, recorded in the UBO register. Related service →

Value Added Tax (VAT)

A 5% consumption tax on most goods and services in the UAE, in force since 1 January 2018. Related service →

Virtual CFO

A part-time, outsourced chief financial officer who provides strategic financial management on a retainer. Related service →

Voluntary VAT registration threshold

AED 187,500 of taxable supplies, imports or taxable expenses. Related service →

Wage Protection System (WPS)

The UAE system through which private-sector salaries are paid via approved banks and exchange houses. Related service →

Zero-rated supply

A taxable supply charged at 0% VAT, such as certain exports, international transport and some education and healthcare. Related service →

Last reviewed 3 November 2026