Common Challenges We Solve
VAT & Tax Considerations for Construction
Our Services for Construction
VAT registration and filing that correctly handles milestone billing and retention, Corporate Tax compliance for multi-year project revenue recognition, External Audit for statutory or bank requirements, and Fixed Assets Services for tracking heavy equipment and machinery.
Who We Work With
General contractors, specialist subcontractors, fit-out companies, and construction project management firms operating across UAE mainland and free zones.
Getting Started
Share details of your typical project structure and contract terms, and we will confirm the right revenue recognition and VAT approach for your business.
Variation Orders and Change Management
Construction projects frequently involve variation orders that change scope, cost and sometimes timeline after the original contract is signed. We track these variations separately, ensuring they’re correctly reflected in both revenue recognition and VAT treatment rather than blended indistinguishably into the original contract value.
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Joint Ventures and Consortium Projects
Retention Release and Defects Liability Tracking
Construction retention is often only released after a defects liability period has passed without issue, sometimes a year or more after project completion. We track retention release dates specifically, so amounts held back aren’t forgotten or written off incorrectly before they’re actually due.
Bid and Tender Cost Tracking
Construction companies invest meaningfully in preparing bids and tenders, many of which are unsuccessful, and tracking these costs separately gives better visibility into true business development cost versus project delivery cost. We help build this visibility into your cost accounting.
Advance Payment Guarantees and Performance Bonds
Construction contracts often require advance payment guarantees or performance bonds, which represent contingent obligations that need appropriate disclosure and tracking even though they don’t sit directly on the balance sheet as a liability in the usual sense. We help ensure these are properly documented and monitored.
Materials Procurement and Supplier Payment Terms
Construction companies managing large materials procurement across multiple suppliers on different payment terms need a clear cash flow view of upcoming obligations. We build procurement and payables tracking that gives you this visibility ahead of when payments actually fall due.
Health, Safety and Insurance Cost Allocation
Construction companies carry significant health, safety and insurance costs that are sometimes billed directly to a project and sometimes absorbed as general overhead, and getting this allocation consistent matters for accurate project-level profitability. We help apply a consistent method across your project portfolio.
We also help ensure insurance claims related to site incidents are tracked and reconciled against any recoveries received, rather than left as an open item.
Frequently Asked Questions
VAT is generally due at the earlier of invoice issuance or payment for each milestone, so accurate milestone tracking is essential to correct VAT timing.
Retention is typically recorded as a receivable until released, with VAT treatment depending on when the underlying invoice was raised — we confirm the correct approach for your contracts.
Yes — we apply appropriate revenue recognition methods for long-term contracts and ensure they’re applied consistently for Corporate Tax purposes.
Yes — our External Audit service delivers independent, bank-accepted audited financial statements for construction companies.
Yes — our Fixed Assets Services build and maintain a proper register for equipment and machinery, including appropriate depreciation.