As a freelancer in Dubai, your focus should be on delivering client value, not navigating complex tax laws. However, with the UAE’s VAT thresholds and new Corporate Tax rules, proactive and precise financial management is critical for staying compliant and avoiding heavy penalties. FrankDigit Accounting Services, led by Bilal Mogul, offers specialized accounting and VAT compliance solutions designed specifically for independent contractors, consultants, and freelance professionals in the UAE Mainland and Free Zones.
We provide a streamlined, automated system that tracks your income, manages eligible expenses, and ensures your mandatory compliance requirements are met on time. Our FTA-Approved Tax Agent status gives you confidence that your bookkeeping is handled with the highest level of Confidentiality, Transparency, and Integrity (CTI), ensuring your financial peace of mind.
Freelancers operating in the UAE are treated as businesses and are subject to the same tax regulations. This means maintaining clear records to determine VAT registration status and Corporate Tax liability. The key compliance triggers for freelancers are:
- Mandatory VAT Registration: Required if your annual taxable turnover exceeds AED 375,000.
- Voluntary VAT Registration: Available for turnover between AED 187,500 and AED 375,000 (often beneficial for claiming input VAT).
- Corporate Tax: Freelancers earning over AED 1 million in annual turnover are typically required to register and file returns.
FrankDigit helps you monitor your revenue in real-time to ensure immediate registration the moment you cross a threshold, mitigating the risk of significant FTA penalties.
We transform your administrative burdens into an automated workflow, ensuring your time is spent on billable work, not paperwork.
| Benefit | How FrankDigit Delivers |
|---|---|
|
Threshold Monitoring |
Real-time tracking of revenue against the AED 187.5K and AED 375K thresholds for VAT. |
|
VAT-Compliant Invoicing |
Setup of automated invoicing (via Xero/QuickBooks) that includes the correct 5% VAT rate and your TRN. |
|
Quarterly VAT Filing |
Accurate calculation of Output VAT (sales) vs. Input VAT (expenses) and timely electronic filing on the EmaraTax portal. |
|
Expense Management |
Meticulous tracking and categorization of deductible business expenses to maximize rightful Input VAT claims. |
|
Corporate Tax Readiness |
Guidance on Corporate Tax registration requirements and preparation of financial statements needed for filing, if applicable. |
Managing your books as a freelancer involves special considerations, particularly related to the source and location of your services.
Many UAE freelancers serve international clients. We advise on which services qualify for Zero-Rated VAT (0%) versus the standard 5% VAT, a critical distinction for compliance. This also includes ensuring the correct application of the Reverse Charge Mechanism for specific cross-border transactions, reducing your compliance headache and ensuring you don’t overcharge or underpay tax.
UAE law requires you to keep all tax-related records (invoices, receipts, tax returns) for a minimum of five years. We utilize secure, cloud-based software (Zoho Books is highly suitable for solo professionals) to maintain an unalterable, audit-ready digital ledger. If the FTA requests an audit, Bilal Mogul’s team provides full representation and ensures all documentation is perfectly in order.
We simplify compliance so you can focus on building your brand and client list.
- Decode (Threshold Assessment): We assess your current and projected income to advise on mandatory or voluntary VAT/CT registration and handle the full FTA registration process.
- Simplify (System Setup): We implement your chosen cloud platform, configure the Chart of Accounts for freelance business, and automate bank reconciliation and compliant invoice generation.
- Automate (Filing & Review): We manage ongoing monthly bookkeeping, process VAT returns quarterly, and deliver concise performance reports, proactively alerting you to upcoming tax deadlines and potential compliance risks.
Ready to eliminate the stress of tax compliance and maximize your earnings? Let our FTA-Approved Tax Agents handle your accounting complexity.
📞 Contact FrankDigit Accounting Services for your personalized freelancer accounting package today.