Your complete, non-technical walk-through for VAT, FTA compliance, and Corporate Tax filing in the UAE  powered by Zoho Books.

Imagine this: It’s the end of the month, and your finance team is staring at spreadsheets, trying to reconcile invoices, calculate input–output VAT, and ensure the numbers align with FTA requirements.

Now add the new UAE Corporate Tax (CT) rules into the mix  tax periods, taxable income adjustments, CT returns, and audit trails.

For thousands of UAE businesses, this is exactly where the panic starts.

But for companies using Zoho Books, that story looks very different.

With automated VAT calculation, FTA-ready reports, built-in Corporate Tax computation, and real-time error checking, Zoho Books has become the most trusted tax compliance tool in the UAE  especially for SMEs, startups, and service-based firms.

In this 2026 guide, we’ll show you exactly how Zoho Books simplifies VAT + Corporate Tax filing in the UAE and why businesses are switching to it faster than ever.

1. Why UAE Businesses Prefer Zoho Books for VAT & Corporate Tax Compliance

Before jumping into features, here’s what makes Zoho Books stand out in the UAE market:

✔ Fully compliant with UAE VAT & Corporate Tax laws

Zoho Books updates instantly whenever FTA or MoF regulations change  no manual adjustments needed.

✔ Built-in FTA audit files

Generate VAT return (201), VAT detail reports, Tax Summary, Reverse Charge reports, and audit files in seconds.

✔ Automated corporate tax computation

Revenue, Adjustments, Exemptions, Small Business Relief everything is handled systematically.

✔ 100% cloud-based & accessible anywhere

Ideal for SMEs, remote teams, and business owners in Dubai, Abu Dhabi, Sharjah & across the UAE.

✔ The most affordable tax-ready accounting system

Compared to other ERPs costing AED 1,500 - 4,000 per year, Zoho Books offers unmatched value.

And when implemented by Senthuraa an Zoho Partner, businesses get VAT-ready customization, automation, templates, workflows, and FTA-compliant configurations from day one.

2. Understanding VAT in the UAE

VAT in the UAE is charged at 5%, and businesses must:

• Track taxable supplies

• Calculate input VAT

• Determine output VAT

• File VAT return form 201 (monthly/quarterly)

• Maintain 5-year compliant records

Businesses often struggle with reconciling sales, purchases, and adjustments especially if they use Excel or outdated accounting tools.

Zoho Books solves this with real-time VAT automation.

3. How Zoho Books Makes VAT Filing Easy for UAE Businesses

3.1 VAT Setup in a Few Clicks

Zoho Books provides prebuilt UAE VAT settings:

• Standard Rate (5%)

• Zero-Rated Categories

• Exempt Supplies

• Reverse Charge Mechanism (RCM)

You simply choose:

• Tax Registration Number (TRN)

• Filing Period

• Tax Treatment (UAE / GCC / International)

No tax expertise required.

3.2 Automated VAT Calculation on Every Invoice

Whether you issue:

• Sales invoices

• Purchase bills

• Credit notes

• Expenses

Zoho Books auto-calculates VAT with 100% accuracy and applies the correct tax treatment.

Example:
If you buy IT services from India, Zoho Books auto-applies Reverse Charge VAT.

3.3 FTA-Ready VAT Reports in One Click

The biggest advantage of Zoho Books?

It automatically generates FTA-compliant VAT reports.

Reports include:

• VAT Summary

• VAT Return (201)

• Sales & Purchase Register

• Reverse Charge Report

• Audit Trail Report

• FTA-compliant CSV export

You export the file → upload to FTA portal → file the return.

Zero stress.

3.4 Real-Time Error Checking Before Filing

Zoho Books flags:

• Missing TRN

• Wrong tax treatment

• Zero-rated misclassification's

• Duplicate entries

• Currency mismatches

This prevents expensive VAT penalties for non-compliance.

3.5 Maintain 5-Year Mandatory Records Automatically

FTA requires all VAT records to be stored for minimum 5 years.

Zoho Books auto-saves:

• Invoices

• Bills

• Expenses

• VAT audit trail

• Payment proofs

All securely stored on the cloud.

4. Corporate Tax in the UAE: What Businesses Need to Know

UAE Corporate Tax (CT) is now fully live.
Here’s the summary:

Corporate Tax Rates

• 0%: Taxable income up to AED 375,000

• 9%: Income above AED 375,000

• Free Zone Companies: 0% on qualifying income

Businesses must file:

• CT Return

• Financial Statements

• Adjustments schedules

• Audit records

This is where Zoho Books simplifies everything.

5. How Zoho Books Simplifies Corporate Tax Filing in the UAE

5.1 Built-In Corporate Tax Module

Zoho Books includes:

• CT calculation engine

• Adjustments templates

• Capital expenditure rules

• Small Business Relief computation

• Free Zone tax profiles

You simply enter CT settings → Zoho Books does the math.

5.2 Automated Calculation of Taxable Income

Zoho Books calculates taxable income by auto-adjusting:

• Non-deductible expenses

• Depreciation

• Interest deduction limits

• Entertainment expenses

• Related-party transactions

• Foreign income adjustments

This eliminates manual errors.

5.3 CT Return Preparation Report

The software prepares:

• Taxable income

• Exempt income

• Qualifying free zone income

• Tax losses

• Final CT payable

You export & upload to the MoF portal.

5.4 Corporate Tax Audit Trail

Every edit, entry, or deletion is automatically logged  a major help during audits.

5.5 Small Business Relief (SBR) Automation

If annual turnover < AED 3 million:

Zoho Books automatically flags SBR eligibility and switches to simplified CT reporting.

6. Step-by-Step: Filing VAT & Corporate Tax in Zoho Books

VAT Filing Steps

1. Go to Reports → VAT Return

2. Verify Output vs Input VAT

3. Resolve highlighted errors

4. Export FTA-ready file

5. Upload to FTA portal

6. Make payment

Corporate Tax Filing Steps

1. Open Corporate Tax Module

2. Confirm tax period & profiles

3. Review auto-generated taxable income

4. Export CT return summary

5. File via MoF portal

Simple. Fast. Accurate.

7. Real Benefits UAE Businesses See After Switching to Zoho Books

Here’s what you can expect after switching to Zoho Books:

✓ 60–80% time saved in VAT preparation

No more manual Excel work.

✓ Zero VAT penalties

Error-free filing with real-time validation.

✓ 100% compliant CT calculations

Fully aligned with UAE corporate tax law.

✓ Better visibility & control

Owners can log in anytime and see real-time financials.

✓ Seamless scalability

Grows with your business  from a startup to a multi-branch company

Senthuraa Technologies is a Zoho Partner helping businesses across the UAE automate accounting, CRM, HR, operations, and workflows using Zoho’s ecosystem.
We simplify VAT, Corporate Tax, invoicing, and financial operations for UAE businesses through expert implementation and tailored automation.

👉 Book a free consultation today

FAQs Zoho Books VAT & Corporate Tax (UAE 2026)

1. Is Zoho Books approved by the UAE FTA?

Yes. Zoho Books is fully compliant and used widely across the UAE.

2. Can Zoho Books file VAT return directly to FTA?

No direct API exists yet, but Zoho Books generates an FTA-ready file for easy submission.

3. Does Zoho Books support UAE Corporate Tax?

Yes  a full CT module is built in.

4. Is Zoho Books good for Free Zone companies?

Absolutely. It supports multiple tax profiles including 0% qualifying income.

5. Can I migrate from Tally/QuickBooks?

Yes. Senthuraa handles complete migration with no data loss.