Accounting for logistics and shipping companies in the UAE
Much of the money passing through a logistics or ship management company is not its own: crew wages, port charges and customs duty paid for owners and clients. We keep those funds apart from your revenue, file VAT and Corporate Tax, and show the owner what the company actually earned.
- Owners' fundsKept apart from revenue
- By vessel or shipmentCosts and balances
- Multi-currencyReconciled to the bank
Which logistics businesses this is for
Freight forwarders
Customs duty, terminal charges and freight paid for clients and recharged to them. Disbursements kept apart from your own fees, import VAT accounted for through the return.
Ship management companies and ship agents
Funds from owners, crew wages and port costs paid on their behalf, a management fee as your own income. Books by vessel, with each owner's balance in plain view.
Transport and trucking companies
Fuel, repairs, drivers' pay and insurance for every vehicle. Costs tracked per truck, so the owner sees which routes and contracts make money.
Yacht management companies
Owners' money, crew, berths and maintenance paid on their behalf, your management fee on top. Each yacht with its own balance the owner can follow.
Your money and your clients' money, kept apart
Books by vessel, vehicle or shipment, reconciled to the bank in every currency.
- Monthly bookkeeping in Zoho Books, Xero, QuickBooks or another system, by vessel, vehicle or shipment
- Funds from owners and clients kept apart from your own revenue, with a balance for each
- Disbursements set up to stay outside VAT: paid as agent, passed on at cost, shown separately on the invoice
- Crew wages paid on owners' behalf recorded against each vessel
- VAT registration and quarterly returns: international transport at 0% where the conditions are met, import VAT under the reverse charge
- Multi-currency bank accounts reconciled every month, with exchange differences booked
- Corporate Tax registration and the annual return; for free zone companies, a check of the conditions for the 0% rate
- Supplier invoices, port bills and receipts via a Telegram bot
- Supplier checks with CoreLedger Verify, so input VAT on their invoices is not denied
Whose money it is, and how much is yours
A sample monthly summary for a ship management company. The figures are illustrative.
| Vessel | Received | Paid out | Owner's balance | Management fee | Status |
|---|---|---|---|---|---|
| Vessel A, bulk carrier | 412,000 | 356,500 | 55,500 | 27,500 | Funded |
| Vessel B, tanker | 386,000 | 371,200 | 14,800 | 27,500 | Top-up requested |
| Vessel C, container ship | 298,000 | 322,400 | −24,400 | 22,000 | Owner owes 24,400 |
| Vessel D, supply vessel | 188,000 | 146,400 | 41,600 | 19,000 | Funded |
Logistics and shipping tax in the UAE: what matters
International transport at 0%
International transport of goods and passengers, and services directly connected with it, are zero-rated when the conditions are met. Each service is checked against them before it is invoiced at 0%.
Disbursements outside VAT
Costs paid on a client's behalf as their agent, such as customs duty, port and terminal charges or crew wages, can stay outside VAT if they are passed on at cost and shown separately on the invoice. That is why owners' and clients' money is kept apart from your revenue from day one.
Import VAT through the return
VAT-registered importers account for import VAT in their VAT return under the reverse charge. For a forwarder, the books have to show clearly whose import it is.
Free zone: 0% Corporate Tax has conditions
For a free zone company, owning, managing and operating ships is on the list of qualifying activities for the 0% rate. It applies only if every Qualifying Free Zone Person condition is met, including adequate substance, audited financial statements and no election out. Otherwise profit above AED 375,000 is taxed at 9%.
A return even with no profit
Every company registers for Corporate Tax and files a return, even with no profit. Small Business Relief (revenue up to AED 3 million, tax periods ending by 31 December 2026) is not available to a Qualifying Free Zone Person. Records are kept for at least 7 years.
From mixed funds to clear balances
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 logistics and shipping companies ask
Is international freight zero-rated for VAT in the UAE?
International transport of goods and passengers, and services directly connected with it, are zero-rated when the conditions are met. Zero-rated is not exempt: input VAT on your costs stays recoverable, provided you hold valid tax invoices from suppliers.
Do customs duty and port charges paid for a client attract VAT?
Not if you paid them as the client's agent, pass them on at cost and show them separately on the invoice: then they are disbursements and stay outside VAT. Your own fee goes on its own line.
How should a ship manager account for crew wages paid on the owner's behalf?
As the owner's money, not as your expense or revenue: what the owner sends and what is paid out of it are tracked separately for each vessel. Your income is the management fee. Paid as agent, passed on at cost and shown separately on the invoice, these amounts stay outside VAT as disbursements.
Can a free zone ship management company pay 0% Corporate Tax?
It can: owning, managing and operating ships is a qualifying activity. The 0% rate applies only if every Qualifying Free Zone Person condition is met, including adequate substance, audited financial statements and no election out. Otherwise profit above AED 375,000 is taxed at 9%. We check the conditions every year as part of our tax service.
Does a logistics company need audited financial statements?
For Corporate Tax, yes if revenue exceeds AED 50 million, and always for a Qualifying Free Zone Person, whatever the revenue. Banks and large clients often ask for them as well. We keep the books so an auditor can work with them as they are.
Can you keep the books in several currencies?
Yes. Accounts in AED, USD, EUR and other currencies are reconciled to the bank every month, and the costs of each vessel or shipment are visible in the currency paid and in AED.
How much does accounting cost for a logistics company?
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, including payments made on behalf of owners and clients, before we start.
Let's sort out your business finances
Tell us about your company: what you move or manage, how many vessels, vehicles or shipments a month, and how the books are kept today. We reply within one business day.