Bookkeeping and inventory
Daily sales, stock, costing and margins by store, product and channel.
Retail and E-commerce Accounting, Audit and VAT in Dubai and the UAE
UAE retailers and e-commerce businesses need accurate inventory, reconciled marketplace and payment data, correct VAT on consumer sales and, for mall tenants, certified sales reports. SGA World provides accounting, audit, VAT and corporate tax for shops, brands, distributors and online sellers in Dubai and across the UAE.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
Retail and e-commerce at a glance
- Inventory
- Counts, costing and write-downs
- Online
- Marketplace and gateway reconciliations
- Malls
- Tenant sales audits
- Leases
- IFRS 16 for shops and warehouses
- VAT
- 5% on most consumer sales
Retail and e-commerce run on thin margins and high volumes. Retail and e-commerce accounting has to keep up with thousands of transactions, stock across shops, warehouses and marketplaces, returns and discounts, payment gateways that settle net of fees, and VAT on every consumer sale.
SGA World provides accounting, audit, VAT and corporate tax for shops, brands, distributors and online sellers, including sales audits for mall tenants. We help you see real margins by product and channel, and keep the books ready for the VAT return, the bank and the auditor.
- Accurate stock and margins
- Inventory
- Shops, websites and marketplaces reconciled
- Channels
- Correct VAT on consumer sales
- VAT
- Certified tenant sales reports
- Malls
At a glance
Retail and E-commerce Accounting and Audit: Key Points
- Inventory: stock is valued at the lower of cost and net realisable value; slow-moving and damaged stock needs write-downs.
- Marketplaces: platform payouts are net of fees and refunds; revenue and costs must be recorded gross where you are the seller.
- VAT: most consumer sales are taxed at 5%; prices shown to consumers generally include VAT.
- Leases: shop and warehouse leases are usually on balance sheet under IFRS 16.
- Mall tenants: turnover rent often needs an auditor-certified sales report.
- Corporate tax: small retailers may use small business relief; others pay 9% above AED 375,000.
Our services
Which Services Do We Provide for Retail and E-commerce Businesses?
Marketplace reconciliations
Amazon, noon and website sales matched to payouts, fees and refunds.
Mall tenant sales audits
Certified sales reports for turnover rent.
Annual audit
Audits with stock count attendance for licence, bank and tax.
VAT
VAT returns, discounts, vouchers, returns and gift cards.
Corporate tax
Registration, small business relief and returns.
Key rules
Which UAE Rules Matter Most for Retailers?
| Area | Rule | What it means for you |
|---|---|---|
| VAT on consumer sales | 5% on most goods and services | Prices to consumers generally include VAT. |
| Tax invoices | Simplified invoices allowed in many retail cases | Systems must still capture VAT correctly. |
| Discounts and vouchers | Specific VAT rules apply | Promotions can change the VAT due. |
| Inventory | IAS 2: lower of cost and net realisable value | Write down slow-moving or damaged stock. |
| Leases | IFRS 16 | Most shop leases appear on the balance sheet. |
| Corporate tax | Small business relief up to AED 3m revenue | Larger retailers pay 9% above AED 375,000. |
How we work
How Do We Work With Retail and E-commerce Clients?
Step01
Map channels
Stores, website, marketplaces, payment gateways and warehouses.
Step02
Connect data
POS, e-commerce and marketplace reports into the books.
Step03
Reconcile monthly
Sales to payouts, stock to counts, VAT to sales.
Step04
Report
Margins by product and channel, and cash flow.
Step05
Audit and tax
Stock counts, audited accounts and tax returns.
Why SGA World
Why Choose SGA World for Retail and E-commerce Accounting and Audit?
Retail and marketplace know-how
We understand POS systems, marketplace settlements and payment gateway reports.
Ministry-approved audit firm
SGA World is a Ministry of Economy and Tourism approved audit firm, so our reports are accepted where it matters.
Audit and tax in one team
Auditors, VAT, corporate tax and transfer pricing specialists work together, so nothing falls between advisers.
Qualified chartered accountants
A team of chartered accountants qualified in India and the UK, focused on UAE rules.
500+ clients
Mainland and free zone companies, from start-ups and SMEs to regional groups.
Listed with major UAE banks
Our audit work is recognised by major UAE banks for facilities and account reviews.
E-commerce
How Should Online Sellers Account for Marketplace Sales?
Marketplaces such as Amazon and noon pay sellers net of commissions, fulfilment fees, advertising and refunds. To get the books right:
- record sales at the full price paid by the customer, where you are the seller;
- record fees and fulfilment costs as expenses, with any VAT on them;
- record refunds and returns separately;
- reconcile each payout to the marketplace statement;
- track stock held in fulfilment centres as your inventory.
Posting only the net payout understates both revenue and costs, and leads to VAT errors.
Worked example
Example: A Fashion Brand Selling in Malls and Online
A UAE fashion brand has three mall stores, a website and a marketplace shop.
- Stores: POS sales feed the books daily; each mall needs a certified annual sales report for turnover rent.
- Online: website sales settle through a payment gateway net of fees; marketplace payouts are reconciled monthly.
- Inventory: stock across stores, warehouse and fulfilment centres is counted at year end; last season's stock is written down to net realisable value.
- Leases: the three mall leases are recorded under IFRS 16.
- VAT: gift cards, discounts and returns are treated correctly in the VAT return.
The result: true margins by channel, and a clean audit.
What to prepare
What Do We Need for Retail Accounting and Audit?
Sales data
POS, website and marketplace reports.
Settlements
Payment gateway and marketplace payout statements.
Inventory
Stock reports by location and count results.
Purchases
Supplier invoices, import documents and landed costs.
Leases
Shop and warehouse lease agreements.
Tax
VAT returns and corporate tax registration.
Fees and timing
What Affects the Cost of Retail Accounting?
Costs depend on the number of stores and channels, transaction volume, inventory locations, the systems used and whether we provide monthly bookkeeping, mall sales audits, the annual audit or all three. We agree fixed monthly and annual fees.
Avoid problems
Common Retail and E-commerce Accounting Mistakes
Recording marketplace payouts as revenue
Revenue and costs understated
No write-down of old stock
Overstated profit
Ignoring stock in fulfilment centres
Missing inventory
Wrong VAT on discounts and vouchers
VAT errors
Shop leases kept off balance sheet
Not compliant with IFRS 16
No reconciliation of gateway fees
Hidden costs and lost cash
Talk to us
Know Your Real Margins by Store and Channel
Tell us about your business and what you need. We will propose a clear scope and a fixed fee.
We handle
- Bookkeeping and inventory
- Marketplace reconciliations
- Mall sales audits
- Annual audit
- VAT and corporate tax
Location: Dubai & Abu Dhabi
Talk to Our Team
Our offices in Business Bay, Dubai and Al Bateen, Abu Dhabi support clients across the UAE.
Dubai
Office 1923, The Exchange Tower, Business Bay, Dubai
Abu Dhabi
Khalidiya Towers M-B6, W10, Al Bateen, Al Khalidiyah, Abu Dhabi
Talk to an auditor
Tell us your company type, jurisdiction and deadline. We will confirm the scope, timeline and fee.
- WhatsApp us+971 50 627 3556
- Call us+971 4 570 1795
- Email us[email protected]
- Book an appointmentChoose a time that suits you
Prefer a form? Send us a detailed enquiry.
Who prepared this page
Written and reviewed by SGA World's audit and tax team
This guide is prepared by chartered accountants at SGA World Auditing Accounting L.L.C S.P.C in Business Bay, Dubai, a Ministry of Economy and Tourism approved audit firm, and checked against Federal Tax Authority legislation and guidance. It is reviewed whenever the rules change.
- Last reviewed 14 October 2026
- Chartered accountants from India and the UK
- FTA representation through Saif Chartered Accountants
Have a question about your company?
Tell us your activity, jurisdiction and deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
Retail and E-commerce Accounting and Audit – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Do UAE online sellers charge VAT?
VAT-registered sellers charge 5% VAT on taxable sales to UAE customers. Registration is required once taxable supplies pass AED 375,000.
02.How do I account for Amazon or noon payouts?
Record sales at the full customer price, fees and refunds separately, and reconcile each payout to the marketplace statement.
03.What is a mall tenant sales audit?
An independent review and certification of a tenant's gross sales, used by malls to calculate turnover rent.
04.How is retail inventory valued?
At the lower of cost and net realisable value under IAS 2, with write-downs for slow-moving or damaged stock.
05.Do shop leases go on the balance sheet?
Usually yes. Under IFRS 16, most leases are recognised as a right-of-use asset and lease liability.
06.How is VAT applied to gift cards?
It depends on whether the card is single-purpose or multi-purpose; VAT may arise at sale or at redemption.
07.Can a small retailer use small business relief?
Yes, a resident company with revenue up to AED 3 million can elect it, for tax periods ending on or before 31 December 2029.
08.Do retailers need a stock count for the audit?
Yes, where inventory is material, the auditor attends or reviews the year-end count.
09.Will e-invoicing apply to retailers?
The UAE e-invoicing roll-out starts with business-to-business and business-to-government transactions; check the latest timetable for your business.
10.Can you connect our POS or e-commerce system to the books?
Yes, we work with common POS, e-commerce and accounting systems, including Zoho Books.
11.Which services does SGA World provide to retailers?
Bookkeeping and inventory, marketplace reconciliations, mall sales audits, annual audits, VAT and corporate tax.
References:Federal Tax Authority · UAE Ministry of Finance — reviewed 14 October 2026
