# How to build a chart of accounts in the UAE with a ready-to-use template

> A chart of accounts UAE template built for VAT, corporate tax, and Peppol e-invoicing. Copy the structure, codes, and worked examples below to get

Source: https://einvoicedirect.ae/bookkeeping-uae/chart-of-accounts-uae-template  
Last updated: 2026-06-05  
Publisher: EInvoice Direct (Massive FZCO), UAE e-invoicing software.

## What is a chart of accounts UAE template?

A chart of accounts UAE template is a pre-built list of account codes and names that a UAE business uses to record every transaction. It groups accounts into assets, liabilities, equity, income, and expenses. A good template aligns with UAE VAT, corporate tax, and e-invoicing rules so reports map cleanly to FTA filings.

This guide gives you a working structure you can copy into any accounting tool. It covers numbering, VAT-aware accounts, free zone considerations, and a worked example. For wider context, see our [Bookkeeping and Accounting Services UAE](https://einvoicedirect.ae/bookkeeping-uae) hub.

## Why a UAE-specific chart of accounts matters

Generic templates miss the categories the Federal Tax Authority (FTA) expects to see. UAE businesses must separate standard-rated, zero-rated, and exempt supplies for VAT, track related-party transactions for corporate tax, and store transaction-level data for e-invoicing under the Peppol 5-corner DCTCE (Decentralized Continuous Transaction Control and Exchange) model.

A well-designed template saves rework at filing time. It also reduces the risk of penalties under Cabinet Decision 106 of 2025, which sets fines from AED 2,500 to AED 50,000 per violation for e-invoicing breaches. If you are still deciding how to record entries, read [Single Entry vs Double Entry Bookkeeping](https://einvoicedirect.ae/bookkeeping-uae/single-entry-vs-double-entry-bookkeeping) first.

### What the FTA expects in your records

- Trial balance and general ledger by account code.
- VAT output and input tax tracked separately.
- Sales split by emirate where relevant.
- Records kept for the periods set out in the [UAE Bookkeeping Record Retention Requirements](https://einvoicedirect.ae/bookkeeping-uae/uae-bookkeeping-record-retention-requirements).

## The 5 main account categories

Every UAE chart of accounts uses the same five top-level categories. The numbering style below is a common 4-digit format. You can extend it to 5 digits if you operate multiple branches or free zone entities.

| Range | Category | Examples |
| --- | --- | --- |
| 1000 to 1999 | Assets | Cash, bank, receivables, inventory, fixed assets |
| 2000 to 2999 | Liabilities | Payables, VAT payable, loans, end of service provision |
| 3000 to 3999 | Equity | Share capital, retained earnings, owner drawings |
| 4000 to 4999 | Income | Sales standard rated, sales zero rated, sales exempt, other income |
| 5000 to 9999 | Expenses | Cost of sales, salaries, rent, marketing, depreciation |

### How to number sub-accounts

Keep the first digit fixed for the category. Use the second digit for the group, and the last two digits for the specific account. For example, 1010 can be Petty Cash, 1020 Emirates NBD Current Account, 1030 ADCB USD Account. This pattern keeps reports easy to read and lets your software sort accounts in the right order.

## A ready-to-use UAE chart of accounts template

Copy the structure below into your accounting software. Adjust account names to your business, but keep the numbering pattern so VAT and corporate tax reports stay clean.

| Code | Account name | Notes |
| --- | --- | --- |
| 1010 | Petty cash | Physical cash on site |
| 1020 | Bank current account AED | Main operating account |
| 1030 | Bank account foreign currency | USD, EUR, or GBP holdings |
| 1100 | Trade receivables | Amounts due from customers |
| 1110 | Allowance for doubtful debts | Contra account |
| 1200 | Inventory | Goods held for resale |
| 1300 | Prepaid expenses | Rent, insurance paid in advance |
| 1400 | Input VAT recoverable | 5% VAT on purchases |
| 1500 | Furniture and fixtures | Fixed asset |
| 1510 | Computers and IT equipment | Fixed asset |
| 1590 | Accumulated depreciation | Contra to fixed assets |
| 2010 | Trade payables | Amounts owed to suppliers |
| 2020 | Accrued expenses | Costs incurred not yet invoiced |
| 2100 | Output VAT payable | 5% VAT on sales |
| 2110 | VAT control account | Net of input and output VAT |
| 2200 | Corporate tax payable | 9% above AED 375,000 |
| 2300 | End of service benefits provision | Gratuity accrual |
| 2400 | Bank loan | Long-term borrowing |
| 3010 | Share capital | Paid-up capital |
| 3020 | Retained earnings | Accumulated profits |
| 3030 | Owner drawings | For sole establishments |
| 4010 | Sales standard rated 5% | UAE mainland B2B and B2C |
| 4020 | Sales zero rated | Exports, qualifying services |
| 4030 | Sales exempt | Specific financial and residential lease income |
| 4040 | Sales out of scope | Transactions outside UAE VAT |
| 4090 | Other income | Interest, FX gains |
| 5010 | Cost of goods sold | Direct product cost |
| 5020 | Import duties | Customs charges |
| 6010 | Salaries and wages | Staff payroll |
| 6020 | Staff benefits | Medical, visa, air tickets |
| 6030 | End of service expense | Gratuity charge for the period |
| 6100 | Rent expense | Office or warehouse |
| 6110 | Utilities | DEWA, ADDC, Etisalat, du |
| 6200 | Marketing and advertising | Digital ads, events |
| 6300 | Professional fees | Audit, legal, consulting |
| 6400 | Bank charges | Account fees, transfer fees |
| 6500 | Depreciation expense | Allocated from fixed assets |
| 6900 | Other operating expenses | Catch-all, keep small |

### VAT-aware income accounts

The split of income into standard rated, zero rated, exempt, and out of scope is the most important UAE adjustment. Without it, you cannot produce a VAT return that ties back to your general ledger. The 5% standard rate has been in place since January 1, 2018 under Federal Decree-Law 8 of 2017.

### Corporate tax considerations

Federal Decree-Law 47 of 2022 sets corporate tax at 0% up to AED 375,000 of taxable income and 9% above. Large multinationals with global revenue of EUR 750M or more face a 15% Domestic Minimum Top-up Tax (DMTT) from January 2025. Your chart of accounts should let you isolate related-party transactions, interest expense, and free zone qualifying income. Add memo accounts or analytical tags if your software supports them.

## Free zone and QFZP adjustments

A Qualifying Free Zone Person (QFZP) can access a 0% corporate tax rate on qualifying income. To support that claim, your chart of accounts needs separate income accounts for qualifying activities and non-qualifying activities. Add codes like 4011 Sales qualifying free zone income and 4012 Sales non-qualifying income. This split makes the audit trail straightforward.

### Multi-entity groups

If you operate a mainland LLC and a free zone entity, use the same chart of accounts across both. Add a two-digit company prefix in your software, not in the account code. That keeps consolidated reports simple and avoids duplicate code maintenance.

## Mapping the chart of accounts to e-invoicing

The UAE e-invoicing regime uses the Peppol 5-corner DCTCE model with the PINT AE (Peppol International Invoice for the United Arab Emirates) format. Phase 1 go-live for businesses with AED 50M or more in revenue is January 1, 2027, with an Accredited Service Provider (ASP) appointment deadline of October 30, 2026. Small and medium businesses follow on July 1, 2027, and government entities on October 1, 2027.

Each line on a Peppol invoice maps to one of your income accounts and one VAT rate. If your sales accounts are split by VAT treatment, your e-invoicing software can apply the right tax codes automatically. If they are not, every invoice needs manual review. Read [Digital vs Manual Bookkeeping UAE](https://einvoicedirect.ae/bookkeeping-uae/digital-vs-manual-bookkeeping-uae) for more on the move to digital workflows.

## Worked example: a Dubai trading company

Imagine a Dubai mainland LLC that imports electronics and sells them to UAE retailers. In one month it records:

- Sales of AED 200,000 at the 5% standard rate. Debit 1100 Trade receivables AED 210,000. Credit 4010 Sales standard rated AED 200,000. Credit 2100 Output VAT payable AED 10,000.
- Purchases of AED 120,000 from a UAE supplier at 5% VAT. Debit 5010 Cost of goods sold AED 120,000. Debit 1400 Input VAT recoverable AED 6,000. Credit 2010 Trade payables AED 126,000.
- Rent of AED 15,000 plus 5% VAT. Debit 6100 Rent expense AED 15,000. Debit 1400 Input VAT AED 750. Credit 1020 Bank current account AED 15,750.

At month end, the VAT control account (2110) nets output VAT against input VAT to show the amount due to the FTA. The return is filed within 28 days of the period end. For background on how these entries fit together, see [What Is Bookkeeping UAE](https://einvoicedirect.ae/bookkeeping-uae/what-is-bookkeeping-uae) and [Bookkeeping vs Accounting UAE](https://einvoicedirect.ae/bookkeeping-uae/bookkeeping-vs-accounting-uae).

## Common mistakes to avoid

- Lumping all sales into one income account. You will not be able to produce a clean VAT return.
- Mixing input and output VAT in one account. Always use two accounts plus a control account.
- Adding too many low-volume expense accounts. If an account sees fewer than 5 transactions a year, fold it into a parent.
- Renaming codes mid-year. Lock the structure at the start of the financial year and only add new codes, never reuse old ones.
- Ignoring related-party transactions. Corporate tax requires you to identify and disclose them.

## Checklist before you go live

- Categories numbered in the 1000 to 9999 ranges.
- Separate sales accounts by VAT treatment.
- Input VAT, output VAT, and VAT control accounts in place.
- Corporate tax payable account ready.
- End of service benefits provision and expense accounts created.
- Free zone qualifying and non-qualifying splits added if relevant.
- Account codes mapped to PINT AE tax categories in your software.
- Retention policy aligned with the [UAE Bookkeeping Record Retention Requirements](https://einvoicedirect.ae/bookkeeping-uae/uae-bookkeeping-record-retention-requirements).

## Where the rules are published

The official sources for UAE tax and e-invoicing requirements are the [UAE Ministry of Finance](https://mof.gov.ae), the [Federal Tax Authority](https://tax.gov.ae), and the [UAE MoF e-invoicing portal](https://einvoicing.mof.gov.ae). Check these before changing your chart of accounts to make sure your structure stays compliant.

If you are setting up bookkeeping from scratch, start with the [Bookkeeping and Accounting Services UAE](https://einvoicedirect.ae/bookkeeping-uae) hub for the full picture of records, software, and reporting.

EInvoice Direct is built for UAE businesses moving to Peppol e-invoicing, and an accredited service provider is included at no extra charge. To talk through how your chart of accounts maps to PINT AE and what your team needs before the 2026 and 2027 deadlines, [get UAE e-invoicing pricing](https://einvoicedirect.ae/for-tax-firms#contact).

## Frequently asked questions

### Is there an official UAE chart of accounts template from the FTA?

No, the Federal Tax Authority does not publish a mandatory chart of accounts. It requires businesses to keep records that support VAT returns, corporate tax filings, and e-invoicing under the PINT AE format. You are free to design your own structure, as long as it can produce the reports the FTA and Ministry of Finance request during reviews or audits.

### How many accounts should a small UAE business have?

Most small UAE businesses run well with 40 to 80 active accounts. That gives you enough detail to separate VAT categories, payroll, rent, and key expenses without overwhelming reports. Start lean and add accounts only when a transaction type appears at least 5 times a year. Too many low-volume accounts make the trial balance harder to review.

### What is the difference between a chart of accounts and a trial balance?

The chart of accounts is the list of all account names and codes your business uses. The trial balance is a report that shows the balance on each of those accounts at a point in time. The chart of accounts is the structure, the trial balance is a snapshot of activity within that structure.

### Do free zone companies need a different chart of accounts?

Free zone companies use the same five top-level categories as mainland businesses. The main change is adding separate income accounts for qualifying and non-qualifying activities, so a Qualifying Free Zone Person can support the 0% corporate tax claim. The VAT structure stays the same, since UAE VAT rules apply to most free zone supplies.

### How does e-invoicing affect my chart of accounts?

Peppol e-invoicing under the PINT AE format requires each invoice line to carry a tax category and rate. If your sales accounts are split by VAT treatment, the mapping is automatic. If not, you will need manual checks on every invoice. Setting up the right structure before the January 2027 go-live for large businesses saves rework later.

### Can I change my chart of accounts mid-year?

You can add new accounts at any time without disruption. Avoid renaming or reusing codes mid-year, because that breaks comparisons across periods. If a major restructure is needed, plan the change for the start of a new financial year and document the mapping from the old codes to the new ones for audit purposes.

### What account codes do I need for UAE corporate tax?

At minimum, add a corporate tax payable account on the balance sheet and a corporate tax expense account on the profit and loss. If you have related-party transactions, free zone qualifying income, or interest expense, give each its own account. This makes the 9-month corporate tax filing under Federal Decree-Law 47 of 2022 much easier to prepare.


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This content is informational and is not tax, legal, or financial advice.
For UAE e-invoicing pricing, see https://einvoicedirect.ae/for-businesses#contact