Selling on Amazon.ae and Noon is one of the fastest ways to grow a product business in the UAE. It is also one of the easiest ways to end up with books that don’t make sense. Payouts arrive net of fees, refunds and advertising. Stock sits in someone else’s warehouse. VAT is charged on your sales and on the marketplace’s fees. And your bank balance rarely matches what Seller Central or the Noon dashboard says.
We provide accounting, VAT and corporate tax services built specifically for marketplace sellers — so you know your real profit and stay compliant with the FTA.
Why Marketplace Accounting Is Different
A traditional shop records a sale and banks the cash. A marketplace seller deals with a chain of transactions behind every payout:
- Gross sales to customers, including VAT
- Referral or commission fees deducted by the marketplace
- Fulfilment fees for FBA (Fulfilled by Amazon) or FBN (Fulfilled by Noon)
- Storage and long-term storage fees
- Advertising spend (sponsored products and ads)
- Refunds, returns and reimbursements
- Promotions, coupons and discounts
- Cash on delivery collections and payout timing
If you only record the net payout, your revenue is understated, your expenses are missing, and your VAT return is almost certainly wrong.
VAT for Amazon and Noon Sellers
When must a marketplace seller register for VAT?
You must register for VAT when your taxable supplies exceed AED 375,000 in the previous 12 months, or are expected to in the next 30 days. You may register voluntarily above AED 187,500. Marketplace sales count towards the threshold just like any other sale. Follow our guide to VAT registration in the UAE.
Output VAT on your sales
As the seller of record, you charge 5% VAT on your sales to UAE customers and report it in your VAT return — even though the marketplace collects the money. Your VAT return should be based on gross sales, not on the payout you receive.
Input VAT on marketplace fees
Amazon and Noon charge VAT on their fees to UAE sellers. Once you are VAT registered, that VAT is usually recoverable as input tax — but only if you download and keep the marketplace’s tax invoices for fees. Many sellers miss this and overpay VAT every quarter.
Imports and customs
If you import stock, you pay import VAT through customs. VAT-registered importers can usually account for it through the reverse charge mechanism in the VAT return instead of paying cash upfront. Customs records must match your VAT return.
Free samples and influencer gifts
Giving products away is common in e-commerce marketing. Under UAE VAT rules, gifts and samples above AED 500 per recipient per year can be treated as a deemed supply, with VAT due on their value. We track these for you.
Returns and refunds
Refunded sales require a correct tax credit note or adjustment so your output VAT is reduced properly.
Our VAT return filing and VAT reconciliation services are set up to handle all of these marketplace-specific items.
Selling on Amazon.sa or Noon Saudi?
If you send stock to warehouses in Saudi Arabia or sell into the Kingdom, Saudi VAT (15%) rules may apply, and a non-resident business can be required to register with ZATCA regardless of turnover. We review your cross-border setup and coordinate the UAE side of your accounts.
Settlement Report Reconciliation
The core of our service is reconciling every marketplace settlement to your bank account and your books. Each month we:
- Download Amazon and Noon settlement and transaction reports.
- Split each payout into gross sales, VAT, fees, ads, refunds and reimbursements.
- Match every payout to your bank statement.
- Record fees using marketplace tax invoices so input VAT is recoverable.
- Track outstanding reimbursements for lost or damaged stock.
- Report profit by channel — Amazon, Noon, your own website and wholesale.
Inventory Accounting for FBA and FBN
Stock in an Amazon or Noon fulfilment centre is still your inventory. We maintain inventory records across warehouses, calculate cost of goods sold, and adjust for damaged, lost, removed and returned units — so your gross margin reflects reality and your year-end accounts are ready for audit if required.
Corporate Tax for Marketplace Sellers
Marketplace sellers — whether a mainland LLC, a free zone company or an individual with turnover above AED 1 million — need to register and file for corporate tax. If your revenue is AED 3 million or less, you may be able to elect Small Business Relief. Free zone sellers selling to UAE consumers should be careful: retail sales to mainland customers are generally not qualifying income for QFZP purposes. See corporate tax for SMEs.
Get Expert Help for Your Business
Talk to an FTA-approved tax consultant today. Free consultation, no obligation — we’ll tell you exactly what your business needs.
E-Invoicing for Marketplace Sellers
The UAE e-invoicing mandate covers B2B and B2G invoices, while B2C sales are excluded for now. Sellers who also supply businesses — wholesale orders, corporate gifting, B2B accounts — will need to comply. Use our e-invoicing readiness checklist to check where you stand.
What's Included in Our Marketplace Seller Package
- Monthly bookkeeping and settlement reconciliation
- Amazon, Noon, Shopify and payment gateway integration
- FBA/FBN inventory tracking and COGS
- Quarterly VAT returns with full input VAT recovery
- Corporate tax registration and annual return
- Monthly profit-and-loss by channel
See the monthly fees on our accounting packages and pricing page, and read more about our wider e-commerce accounting services and retail business accounting. If you work in Zoho, we can manage everything inside Zoho Books.
Call +971 52 406 3000 or talk to a marketplace accountant today.
Frequently Asked Questions
Yes, if taxable supplies exceed AED 375,000 in 12 months or are expected to in the next 30 days. Marketplace sales count towards this threshold.
Usually yes, once you are VAT registered, provided you keep the valid tax invoices the marketplace issues for its fees.
Gross sales. The payout is net of fees, ads and refunds, so using it understates your sales and your output VAT.
Yes. It remains your inventory until it is sold, and it must be included in your stock records and year-end accounts.
Yes. Companies must register, and individuals selling with turnover above AED 1 million must also register. Small Business Relief may apply if revenue is AED 3 million or less.
Yes. We reconcile all channels, including your own website and wholesale sales, and report profit by channel.