Accounting Software and Tax Invoices for Small Business in the UAE
Issue a tax invoice in AED and see who paid and who is late, in one place.
The short answer
In the UAE a VAT registered business issues a tax invoice with 5% VAT and in AED within 14 days of the supply. Founder OS issues the tax invoice, tracks what is paid and late, and prepares the VAT return for you to review and file yourself, in the Launch plan at AED 149 a month. Its invoice does not yet show the client's address and TRN, which a registered client needs on an invoice above AED 10,000 including VAT.1, 2, 4
What a small business needs from its accounting in the UAE
- A record of every amount in or out, with its date and category.
- Valid tax invoices once you are VAT registered. Registration is mandatory when your taxable supplies and imports pass AED 375,000 in the last 12 months, and voluntary from AED 187,500.3
- Tracking your client invoices: who paid and who is late.
- Supplier bills and the expenses you owe.
- A tax return from your books, and a profit and loss that shows where you stand.
If you have not registered yet, the steps and thresholds are in VAT registration in the UAE.
UAE tax invoice format and requirements
The Federal Tax Authority publishes the contents of a full tax invoice, and asks for it to be issued and delivered within 14 days of each taxable supply. Here they are, and what the Founder OS invoice shows today:
| Item the FTA lists | On the Founder OS invoice |
|---|---|
| The words tax invoice, clearly shown | On the Founder OS invoiceYes1 |
| A sequential invoice number | On the Founder OS invoiceYes, each invoice numbered in sequence1 |
| The date of issue | On the Founder OS invoiceYes1 |
| The date of supply, if different from the invoice date | On the Founder OS invoiceNo field for it today1 |
| The supplier's name, address and TRN | On the Founder OS invoiceYes, added once1 |
| The recipient's name and address, and TRN if registered | On the Founder OS invoiceName only today, without the address and TRN1 |
| A description of the goods or services | On the Founder OS invoiceYes, once you add the invoice lines; otherwise one general line with the client's name1 |
| Unit price, quantity, VAT rate and amount in AED for each line | On the Founder OS invoicePartly: quantity and the VAT inclusive unit price show in the line description when the quantity is above one; the 5% rate and each line's amount in AED are shown1 |
| Any discount offered | On the Founder OS invoiceNo field for it today1 |
| The total VAT in AED | On the Founder OS invoiceYes1 |
The gap that matters: if your client is VAT registered and the invoice is above the simplified invoice limit, the full invoice needs their address and TRN, and the Founder OS invoice shows only their name today. We say it plainly so it does not surprise you.
When a simplified tax invoice is enough
The FTA allows a simplified invoice instead of a full one in two cases:
- The recipient is not registered for VAT.
- The recipient is registered, and the VAT inclusive price of the supply is AED 10,000 or less.
A simplified invoice needs five items: the words tax invoice, the supplier's name, address and TRN, the date of issue, a description that identifies the goods or services, and the total with the VAT charged. All five are on the Founder OS invoice once you add your address, TRN and the invoice lines.
Example: how the VAT on an invoice is worked out
VAT in the UAE is 5%. In Founder OS you enter each line's amount including VAT, and the app takes the VAT out of it: every AED 105 holds AED 100 before VAT and AED 5 of VAT. So a line of AED 1,050 including VAT shows on the invoice as AED 1,000 before VAT and AED 50 of VAT.
If you have not added your TRN, the app warns you the invoice is not yet a valid tax invoice.
What Founder OS does and does not do
- Issues a tax invoice with 5% VAT to print or save as a file.
- Tracks each invoice's status: draft, sent, paid or overdue.
- Records supplier bills, expenses, and bank and cash accounts.
- Shows the profit and loss and the balance sheet.
- Prepares the VAT return from your books for you to review.
It does not file the return for you; filing is yours. It is software where you record your own transactions, not a bookkeeper service. Accounting and invoicing are in the Launch plan at AED 149 a month, and tasks and projects are always free.
To compare it with other software at the prices on their own pages, read the best accounting software in the UAE. To follow clients before the invoice, the CRM for small business turns every won deal into its invoice.
Your company in 3 steps
- 1Add your company and TRN
- 2Add your details
- 3Follow your work
Numbers to know before you start
Common questions about accounting and invoicing software
What is the best accounting software for a small business in the UAE?
Look for a tax invoice in AED, a clear view of your money, supplier bills and a tool you can open on your phone. Founder OS has all of that in Arabic and English.
What is the UAE tax invoice format?
According to the Federal Tax Authority: the words tax invoice, a sequential number, the date of issue, the supplier's name, address and TRN, the recipient's name and address and their TRN if registered, the lines with price and quantity, and the VAT and total in AED. The Founder OS invoice shows the recipient's name today, without the address and TRN, and you print it or save it as a file.
How do I issue a tax invoice in the UAE?
Add your company name and TRN once and every invoice comes out with 5% VAT. Without a TRN the app warns you the invoice is not valid yet.
When do I issue a tax invoice in the UAE?
Within 14 days of the taxable supply, according to the Federal Tax Authority. If your client is not VAT registered, or is registered and the VAT inclusive price is AED 10,000 or less, a simplified tax invoice is enough.
How do I follow who paid?
Every invoice has an issue date, a due date and a status: draft, sent, paid or overdue.
Does it file my VAT return?
No. It prepares the return from your books for you to review and approve, and you file it with the Federal Tax Authority.
How much does it cost?
You start free, and accounting and invoicing are part of the Launch plan. The price is in the numbers card above.
What is bookkeeping?
Recording what comes into your company and what goes out, with its date and category, so you know your profit and costs.
What do I record in bookkeeping software?
Every amount in or out with its date and category, your bank and cash accounts, and the supplier bills you owe.
Is it software or a bookkeeper service?
It is software where you record your own transactions. It is not a bookkeeper service.
How do I manage a small business's finances?
Record income and expenses as they happen, follow your client invoices and supplier bills, and review your profit and loss and balance sheet.
Sources and the date we checked them
- Federal Tax Authority: Tax invoices bulletinChecked on
- UAE Government portal: Value added taxChecked on
- Federal Tax Authority: Registration for VATChecked on
- The Founder: pricingChecked on
- The Founder: the Founder OS pageChecked on
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