FTA approved accounting software, which the FTA itself calls accredited software, is software the Federal Tax Authority has reviewed and listed as meeting its technical requirements for tax accounting. Accreditation is a statement about the software. It is not a licence you need, and a tool missing from the list is not illegal to use. What the FTA cares about is that your returns reconcile to your records and that you can produce those records. Check the FTA’s published list yourself before relying on any vendor’s claim.
What does FTA accredited accounting software mean?
The FTA runs a scheme under which software providers can apply to have their product accredited for tax accounting. The list of accredited providers is published by the FTA on its website at tax.gov.ae. We do not name vendors as accredited here, because the list changes and only the FTA’s own page is the source. If a vendor says it is accredited, ask where it appears on that page.
Accreditation covers what the software can do, such as producing VAT-compliant invoices and the reports a return needs. It does not cover how you use it. A wrong tax code entered in an accredited system is still a wrong return.
Is it illegal to use software that is not on the FTA list?
No. The law asks you to keep proper records, issue valid tax invoices, and file accurate returns. It does not say your tool must be on a list. A spreadsheet or a general package can support a correct return when the records behind it are complete. The risk of a non-listed tool is practical: if it cannot produce a tax invoice with the required details or a clear audit trail, you will struggle to defend your figures. Our guide on Corporate Tax record-keeping penalties shows why the records matter more than the brand.
How do Tally, Zoho, Xero and QuickBooks handle UAE VAT?
These four, with Odoo, are the tools we support. Each can run UAE VAT when it is set up with the right tax codes, and each has places where setup goes wrong.
| Tool | How it handles UAE VAT in practice | Where setup goes wrong |
|---|---|---|
| Tally | Strong ledger and VAT reports; we use it in house for client books. | Wrong ledger grouping for zero-rated and exempt sales. |
| Zoho Books | UAE VAT is built in, with tax invoices and a VAT summary report. | Reverse-charge purchases and emirate tagging need checking. |
| Xero | Clean bank feeds and reconciliation; VAT is set with tax rates. | Out-of-scope and zero-rated codes get mixed up. |
| QuickBooks | Sales tax set up for UAE VAT, with invoice templates. | Credit notes and partial payments often lack the right reference. |
Check any tool against your own transactions rather than the vendor’s demo. Ask it to produce a tax invoice and a credit note, then a VAT report for one month, and see whether the totals match what you expect. Odoo works the same way.
What should accounting software do for your business?
- Issue tax invoices with every detail the law requires, including your tax registration number and the supply date.
- Produce a tax credit note linked to the original invoice.
- Tag sales by emirate and separate standard-rated, zero-rated, exempt and out-of-scope supplies.
- Record reverse-charge purchases on both sides.
- Export a record you can hand to the FTA or to an auditor.
Our post on keeping FTA tax records updated after a trade licence renewal covers one place where records and software drift apart.
Using a tool and unsure whether the VAT setup is right? WhatsApp us on +971 54 1721 823.
Preparing for e-invoicing
The UAE is rolling out an e-invoicing programme. The Ministry of Finance publishes the timeline, so check its announcements for dates. What you can do now is simple: keep customer and supplier details complete, use consistent invoice numbering, record the tax treatment on each line, and pick software that can adapt. Clean data today is the cheapest preparation. Whichever tool you use, ask the vendor how it plans to support the programme.
What the FTA expects from your software setup
The FTA expects your returns to be backed by records and your records to be retrievable. That means the software holds your invoices, credit notes, purchase documents and VAT reports in a way you can export. It also expects someone in your business who knows what the tax codes mean. Software does not file a correct return by itself. A CA-led review catches what a template cannot, and an owner who has reviewed the numbers once a month sleeps better on the filing date.
Our position on software
We run Tally in house. If you already use Odoo, Zoho, Xero or QuickBooks, we support your file, so you do not have to switch tools. You send your documents online or by WhatsApp, we post and reconcile them, and we prepare VAT and Corporate Tax from the result.
What this costs
Pricing is set by your monthly transaction volume. Each package covers VAT, Corporate Tax and books for one fixed price, agreed in advance, and group pricing is available when you run more than one company. Send us your approximate monthly transaction count and we reply with the price.
Our Zero Penalty Assurance is in writing: where your data reaches us by the agreed cut-off dates, no FTA penalty arises from late or incorrect filing, and if a penalty arises from a mistake in our submission, we bear it.
If you are weighing a bookkeeper against a chartered accountant, read bookkeeper vs chartered accountant. We have served 572+ UAE businesses over 18+ years, with zero FTA penalties on our watch.
Tell us the software you use now and we will say whether we can work in it. WhatsApp us on +971 54 1721 823.
Frequently asked questions
Is FTA approved accounting software mandatory in the UAE?
No rule we work from says your tool must be on the FTA list. You must keep proper records, issue valid tax invoices and file accurate returns.
Where can I check if software is FTA accredited?
On the FTA's own website at tax.gov.ae, where it publishes the list of accredited tax accounting software providers.
Which is better for UAE VAT, Tally, Zoho, Xero or QuickBooks?
Each works when set up with the right tax codes. The better choice is the one your team will use consistently and that produces valid tax invoices and clean VAT reports.
Do you work with software I already use?
Yes. We use Tally in house and support your Odoo, Zoho, Xero or QuickBooks file.
