Import/export documentation & customs duty reconciliation
Accounting Services for Trading Companies in Dubai
Trading company accounting needs to reconcile purchase and sales invoices against import/export documentation, letters of credit and customs duty — a mismatch here is often invisible until a customs audit surfaces it.
What's different about trading companies accounting
Most businesses in this sector rely on the same core services: bookkeeping, VAT return filing, the annual corporate tax return and the statutory audit.
Accounting services built for trading companies
Accounting for trading and distribution companies
General trading and distribution companies live on inventory, margins and working capital. Landed cost, stock valuation, supplier credit and trade finance all need to be accurate every month, because banks lend against the numbers and the FTA checks VAT on every import and sale. Most problems we see in trading companies start with inventory records that don't match the warehouse.
| Inventory | Perpetual inventory with landed cost (freight, duty, insurance) and IAS 2 valuation |
| Stock counts | Periodic counts and year-end stock audits reconciled to the ledger |
| Margins | Gross margin by product, customer and channel |
| Trade finance | LC, trust receipt and facility tracking against bank limits |
| Customs | Import duty and VAT on imports reconciled to customs declarations |
| Year-end | Audited IFRS statements, corporate tax return and transfer pricing for group purchases |
VAT and corporate tax for traders
Import VAT is accounted for through the VAT return using the reverse charge for registered importers, and must match customs records. Supplies of gold, diamonds, hydrocarbons and certain electronic devices between registered businesses fall under the domestic reverse charge. Exports of goods can be zero-rated with valid export evidence.
Traders based in designated zones must apply the designated zone rules for goods. For corporate tax, free zone trading of qualifying commodities and distribution from designated zones to resellers can qualify for 0%, but sales to mainland end users generally do not.
Related services for trading companies
Related guides from our team
Practical explanations of the rules behind this service, written by our chartered accountants.
Questions from trading companies owners
Do trading companies face different VAT rules than service businesses?+
The core VAT mechanics are the same, but the volume and documentation requirements around imports and exports mean errors compound faster if the underlying records aren't reconciled regularly.
How do you handle FX gains and losses on trading transactions?+
We track exposure from purchase order through to final settlement, so realised and unrealised FX movements are visible in management reporting, not just discovered at year-end.
Can you help if customs records don't currently match our books?+
Yes — this is a common starting point for trading-company engagements; we reconcile the gap before building the ongoing monthly cycle.
How should inventory be valued?+
At the lower of cost and net realisable value under IAS 2, with cost including freight, duty and other landed costs.
Which goods fall under the UAE domestic reverse charge?+
Gold and diamonds, crude and refined oil and gas products, and specified electronic devices such as mobile phones and computers supplied for resale.
Do you perform stock audits?+
Yes — independent stock counts and inventory verification. See stock audit.
Can a free zone trading company pay 0% corporate tax?+
Only on qualifying income, such as qualifying commodity trading or distribution from a designated zone to resellers, and only as a QFZP.
First review is free, within 24 hours.
Running a trading companies business and tired of generic bookkeeping?
Tell us your current setup and where the reporting breaks down — we'll scope a fixed monthly fee built around how your business actually earns revenue.