29 votes

Best apps/tools for a freelancer in UAE to manage invoices and taxes?

Business

Since getting my SHAMS freelance licence, I'm starting to properly invoice clients. I have clients in UAE (pay in AED), UK (GBP) and Sri Lanka (USD invoices).

UAE has 9% corporate tax now from 2023 but I heard freelancers under AED 375,000 revenue are exempt? And VAT — do I need to register for VAT as a freelancer?

Also what's the best invoicing tool? I'm using random Word templates which is obviously not professional. Budget for tools: prefer free or very low cost to start.

Sanduni Rajapaksha 7 days ago 658 views 3 answers

3 Answers

Accepted Answer

Great questions! Let me address each:

**UAE Corporate Tax (9%):**
Freelancers and individuals earning from personal employment are EXEMPT from corporate tax. If you're operating as a free zone person (SHAMS licence) with revenue under AED 375,000, you qualify for the Small Business Relief and pay 0% corporate tax. Keep records but don't worry about filing until you cross that threshold.

**VAT:**
VAT registration is mandatory only if your taxable supplies exceed AED 375,000/year (mandatory threshold). Below that = no obligation. You can voluntarily register at AED 187,500 but no need to rush that.

**Invoicing Tools (free/low cost):**
- **Wave** (wavefinancial.com) — 100% free, professional invoices, multicurrency, income/expense tracking. HIGHLY recommend.
- **Zoho Invoice** — free for up to 5 clients/month
- **Invoice Ninja** — open source, free plan available
- **Canva** — has beautiful invoice templates if you prefer design control

Wave is my personal pick for early-stage freelancers. Multicurrency is essential for your setup.

Kamal Perera 6 days ago

This community is gold! 🥇 Set up Wave already — love it. Wio Business is linked. Sending my first proper invoice today to a UK client. Feeling very professional! Thank you Kamal and Thilak!

Sanduni Rajapaksha 3 days ago

Accountant here. Kamal's advice is solid. One addition: open a **separate bank account** for business income only (you already have Wio Business which is perfect). Never mix personal and business funds — this makes your accounting clean and in any future tax audit you can clearly show business income vs personal.

Also keep digital records of ALL invoices sent AND received for 5 years — UAE tax law requirement.

Thilak Jayasinghe 5 days ago