Accounting for gyms, sports clubs and salons in the UAE
Clients pay today for three months of training or a course of treatments, and you deliver over the months that follow. We keep the books so that money paid in advance is not mistaken for profit, reconcile booking platform payouts to the bank, run payroll with commission through WPS and file VAT and Corporate Tax.
- Memberships · packagesEarned month by month
- Booking platformsPayouts reconciled
- VAT · CT · WPSDeadlines covered
Businesses that sell time, sessions and memberships
Gym or fitness studio
Monthly and annual memberships, class packs, personal training. The money comes in upfront, and the books have to show how much of it is already earned.
Padel or tennis club
Court bookings through Playtomic or your own system, coaching and academy programmes, a pro shop. We show revenue by stream and how full the courts are.
Beauty salon or spa
Bookings and payments through Fresha or another platform, treatments and product sales at the same desk, stylists and therapists paid a base plus commission.
Barbershop or nail studio
Many small card payments, a team on commission, retail on the side. Once taxable sales over 12 months exceed AED 375,000, VAT registration is mandatory.
Several studios or salons
More than one location under one brand: revenue, payroll and margin for each, and one picture for the owner.
Books that tell paid from earned
From the booking platform to the tax return: memberships, payroll and tax in one closed month.
- Memberships and packages recognised as revenue over the period they cover, with prepayments held as deferred revenue under IFRS 15
- Payouts from Playtomic, Fresha and other booking and payment platforms split into sales, fees and refunds and matched to the bank
- Revenue by stream: memberships, court or room bookings, coaching or treatments, product retail
- Membership freezes and refunds tracked, so deferred revenue stays accurate
- Payroll through WPS, with trainers' and stylists' commission calculated from your booking or sales data
- VAT registration and quarterly returns, with VAT on prepayments declared in the period the money arrives
- Corporate Tax registration and the annual return
- Supplier invoices via a Telegram bot, and suppliers checked in CoreLedger Verify so input VAT is not denied
- A monthly owner's report: revenue by stream, active memberships, occupancy and margin
What you see every month
A sample monthly summary for a sports club with a gym and courts. The figures are illustrative.
| Stream | Revenue | Share | vs September | Status |
|---|---|---|---|---|
| Court rentals | 126,000 | 43% | +12% | Evenings fully booked |
| Memberships | 84,000 | 29% | +5% | On plan |
| Coaching | 58,000 | 20% | −3% | Fewer sessions booked |
| Retail | 22,000 | 8% | 0% | No change |
What a gym, club or salon should know about UAE tax
VAT on a membership is due when it is paid
VAT becomes due at the earliest of the tax invoice or the payment. An annual membership paid in October goes into that quarter's VAT return in full, even though the service runs for twelve months.
Revenue is earned over the membership
In the books, a prepaid membership or package becomes revenue as it is delivered, under IFRS 15. Until then it is deferred revenue: money you hold but have not yet earned.
VAT at 5% and the registration threshold
The standard rate is 5%. Registration is mandatory once taxable supplies over 12 months exceed AED 375,000 or are expected to within the next 30 days; voluntary registration is possible from AED 187,500.
Platforms pay out net of fees
Playtomic, Fresha and similar platforms keep their fees and pay out the rest, often in one transfer for many bookings. As a rule, sales are recorded in full and the fees as an expense, so each payout has to be broken down before it is matched to the bank.
Commission goes through payroll
Trainers and stylists are often paid a base salary plus commission, and both go through payroll, which is paid via WPS. For WPS violations MOHRE can impose fines and suspend new work permits.
From bookings to a clear month
The price depends on volume, not on the industry
Monthly bookkeeping from AED 700; a full finance function with VAT and payroll from AED 2,000 a month. We quote an exact price after reviewing your books.
Questions gyms, clubs and salons ask
When is VAT due on a gym membership paid upfront in the UAE?
When the payment is received, unless a tax invoice was issued earlier: VAT becomes due at the earliest of the two. An annual membership paid in October goes into that quarter's return in full, even though the service runs for a year.
How do you account for prepaid memberships and class packs?
Under IFRS 15 the money becomes revenue as the membership runs or the sessions are used. Until then it sits on the balance sheet as deferred revenue. We keep a schedule for each type, so monthly profit shows what you earned, not just what came in.
Does a beauty salon need to register for VAT in the UAE?
Yes, once taxable supplies over the last 12 months exceed AED 375,000, or are expected to within the next 30 days. Voluntary registration is possible from AED 187,500. With card payments, platform payouts and product sales arriving in different places, we track turnover against the threshold every month.
How should Playtomic or Fresha payouts be recorded?
The platform pays out net of its fees, often in one transfer for many bookings. As a rule, sales are recorded in full and the fees as an expense; we break each payout down and match it to the bank, so nothing gets lost between the booking and the bank statement.
How are membership freezes and refunds handled in the books?
A freeze extends the membership, so the remaining deferred revenue is spread over the longer period. A refund of the unused part reduces deferred revenue, not this month's sales. Both need to be logged when they happen, or the deferred balance drifts.
Does a gym or salon pay Corporate Tax in the UAE?
Every company must register for Corporate Tax and file a return, even with no profit. Profit above AED 375,000 is taxed at 9%. With revenue up to AED 3 million, Small Business Relief can be elected for tax periods ending on or before 31 December 2026; the election is made in the return. We handle both VAT and Corporate Tax.
How much does accounting cost for a gym or beauty salon?
It depends on the number of transactions a month, not on the industry: from AED 700 for monthly bookkeeping, from AED 2,000 for a full finance function with VAT and payroll. We count the real volume before we start so the price holds from the first month.
Let's sort out your business finances
Tell us about your business: how many locations, which booking platform, how memberships are sold and how the books are kept today. We reply within one business day.