VAT Management Consultancy

The FTA no longer needs to prove you committed VAT fraud.

COGS: The Number Every UAE Business Owner Should Understand 📊

Many business owners look at Sales and think, “We’re doing great.”

But sales alone don’t tell the real story.

If you sell products in Dubai/UAE, one number can significantly change your profitability: Cost of Goods Sold (COGS).

COGS = Opening Inventory + Purchases − Closing Inventory

Why does it matter?

✅ Helps calculate accurate Gross Profit
✅ Supports better pricing decisions
✅ Improves inventory management
✅ Helps identify hidden cost problems
✅ Gives you a clearer picture of business performance

For example, if your sales are AED 100,000 and COGS is AED 60,000, your Gross Profit is AED 40,000—before operating expenses.

💡 Business lesson: Higher sales don’t always mean higher profits. You need to understand your costs.

If you’re a UAE business owner, are you tracking your COGS correctly?

A VAT audit usually doesn’t start with a surprise. It often starts with patterns.

The key lesson? VAT compliance is not just about filing returns on time. It’s about being able to defend the numbers when the FTA asks questions.

Good documentation today can save you from unnecessary stress tomorrow.

UAE business owner? When was the last time you reviewed your VAT records for audit readiness?

Book a VAT Health Check with AL SAQR.

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Focus on your cash flow, and your freedom will follow. 🦅
Nadeem Afzal
Al Saqr Accounting & Bookkeeping
📞 +971 55 316 7569
📧 [email protected]
🌐 www.vataccount.com

To stay ahead of this, please ensure:
✅ An active corporate bank account in your company’s name
✅ At least 4 business transactions/month reflected in the account
✅ Account balance reasonably aligned with your declared share capital
✅ Trade license and compliance status kept up to date
✅ Recent bank statements retained and ready if requested

📌 Not every application triggers this request — it’s assessed case-by-case. But being prepared avoids delays or follow-up document requests.

Need help opening a corporate account, or reviewing your company’s compliance position? We’re here to assist.

AL SAQR Accounting & Bookkeeping
📞 +971 55 316 7569
📧 [email protected]
🌐 www.vataccount.com

🚨 VAT is not always 5% in the UAE. And that misconception can cost businesses thousands.

Whether you’re in education, healthcare, real estate, transportation, free zones, financial services, or e-commerce, the correct VAT treatment depends on the nature of your supply—not assumptions.

That’s why we’ve created this practical UAE VAT Treatment Guide to help business owners, finance teams, and entrepreneurs quickly understand how VAT applies across key industries.

A small classification mistake today can lead to penalties, unnecessary tax costs, or missed recovery opportunities tomorrow.

At AL SAQR Accounting & Bookkeeping, our mission is simple: make UAE tax compliance clear, practical, and stress-free.

📌 Save this guide for future reference.
🔄 Share it with your network to help others stay compliant.
💬 Have a VAT question? Drop it in the comments or send me a message—I’m happy to help.

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Your loss year isn’t wasted. It’s a tax shield — if you protect it. 🛡️

Swipe to see the 3 rules that decide whether your UAE Corporate Tax losses survive to your next profitable year — and the one election that can wipe them out permanently.

✅ Carried forward indefinitely (Article 37)
✅ Capped at 75% of taxable income per year
✅ Oldest losses used first (FTA, June 2026)
⚠️ >50% ownership change can kill them
⚠️ Small Business Relief in a loss year forfeits them for good

Don’t let a technicality erase years of accumulated tax relief.

📩 DM us or visit www.vataccount.com

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18 days left. After that, your AED 10,000 penalty is gone for good — in the wrong direction.