The one system your business needs.
Billing, GST, stock, purchase and sales in one open source system. One price per company, every app included, AI on your own key.
- Every app included, one price per company
- GSTR-1/3B, e-invoicing and e-way bills built in
- AI on your own key, or on your own servers
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VAT-Ready ERP Software for the UAE
The United Arab Emirates has rapidly evolved from a tax-free jurisdiction to a regulated business environment with VAT, corporate tax, and upcoming mandatory e-invoicing. VAT was introduced in January 2018 at a standard rate of 5%, with registration mandatory for businesses with taxable supplies exceeding AED 375,000 annually. While 5% is low by global standards, the compliance requirements are strict. The Federal Tax Authority (FTA) requires VAT returns filed quarterly or monthly depending on business size, with penalties for late filing starting at AED 1,000 for the first offense and doubling for subsequent violations.
Country
United Arab Emirates
Currency
UAE Dirham (AED)
Compliance
4 local requirements
Business Environment in United Arab Emirates
UAE Corporate Tax took effect for financial years starting on or after June 1, 2023, applying a 9% rate on taxable income exceeding AED 375,000. This was a major shift for businesses accustomed to zero corporate taxation. ERP systems must now track taxable income, apply the correct thresholds, and maintain the documentation required under the corporate tax regime. Yukti handles corporate tax calculations and generates the supporting schedules needed for filing.
All employers registered with MOHRE must pay salaries through approved banks or exchange houses and submit a Salary Information File (SIF) that meets exact formatting standards. MOHRE monitors these payments electronically, and if salary payments are delayed past 17 days from the due date, the company's ability to issue new work permits is blocked. Yukti generates WPS-compliant SIF files and integrates with approved payment channels to ensure timely salary disbursement.
UAE e-invoicing becomes mandatory starting July 2026 for large companies with annual revenue above AED 50 million, with full nationwide rollout completing by January 2027. The system will require businesses to transmit invoices through FTA-accredited e-invoicing providers. Yukti is building integration with the FTA e-invoicing infrastructure ahead of the mandate deadline.
The UAE's position as a regional business hub means many companies operate across free zones and the mainland, each with different licensing and reporting requirements. Free zone companies may qualify for 0% corporate tax under specific conditions. Yukti supports multi-entity operations with separate reporting for free zone and mainland businesses within a single system.
United Arab Emirates compliance that OneYukti handles
Local requirements handled in the system, prepared from your books
VAT at 5% with FTA return filing (quarterly or monthly) and Input Tax Credit tracking
Corporate Tax at 9% on income above AED 375,000 with free zone exemption support
E-invoicing readiness for the July 2026 mandate via FTA-accredited providers
Free zone and mainland multi-entity reporting within a single ERP instance
Localization for United Arab Emirates
Yukti includes country-specific configurations for the chart of accounts, tax calculation, invoice formats and reporting requirements used in United Arab Emirates. Staff records cover attendance, leave and expenses.
- UAE chart of accounts supporting both IFRS and local reporting requirements
- FTA-compatible VAT return generation with tax group support
- WPS Salary Information File (SIF) generation for MOHRE compliance
- Multi-entity setup for free zone and mainland operations
- Arabic and English bilingual invoice and report support
- AED with multi-currency support for international trade hub operations
Key Industries in United Arab Emirates
Yukti serves businesses across the industries that drive United Arab Emirates's economy.
Deployment and Data Residency
Deploy on UAE data centers to comply with UAE data protection law (Federal Decree-Law No. 45 of 2021) and sector-specific data residency requirements. Yukti supports deployment on AWS me-central-1 (UAE), Azure UAE North, and Google Cloud me-central1 (Doha, with low latency to UAE) regions.
United Arab Emirates ERP Questions
Does Yukti handle UAE VAT compliance?
Yes. Yukti calculates UAE VAT at the standard 5% rate, tracks Input Tax Credit, and generates the data needed for FTA VAT returns filed quarterly or monthly depending on business size.
What is the UAE VAT registration threshold?
Businesses with taxable supplies exceeding AED 375,000 annually must register for VAT with the Federal Tax Authority (FTA). Yukti tracks taxable supplies so businesses can monitor when they approach this threshold.
Can Yukti calculate UAE Corporate Tax?
Yes. Yukti applies the 9% Corporate Tax rate on taxable income above AED 375,000, which has been in effect for financial years starting on or after June 1, 2023, and generates the supporting schedules needed for filing.
Is Yukti ready for UAE mandatory e-invoicing?
UAE e-invoicing becomes mandatory from July 2026 for large companies with annual revenue above AED 50 million, with full nationwide rollout by January 2027. Yukti is building integration with FTA-accredited e-invoicing providers ahead of the mandate.
Can Yukti manage both free zone and mainland UAE entities?
Yes. Yukti supports multi-entity operations with separate reporting for free zone and mainland businesses within a single ERP instance, including tracking for free zone companies that may qualify for 0% corporate tax under specific conditions.
Ready to run your United Arab Emirates business on OneYukti?
See how Yukti handles United Arab Emirates compliance, localization, and reporting out of the box
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