Selling on Amazon.ae and Noon is easy to start. Keeping the books right is harder: settlements bundle sales, fees, refunds and adjustments into one payout, and your stock sits in someone else's warehouse. Here's how to handle it.
1. Record settlements gross, not net
Every settlement report shows what happened in the period: orders, refunds, marketplace fees, fulfilment fees, advertising and adjustments. The amount that reaches your bank is the net. Your books need the gross picture.
| Line in the settlement | How to record it |
|---|---|
| Product sales (incl. VAT) | Sales + output VAT |
| Shipping charged to customers | Sales + output VAT |
| Refunds | Reduce sales and output VAT |
| Referral / commission fees | Expense + input VAT (with the marketplace's tax invoice) |
| Fulfilment and storage fees | Expense + input VAT |
| Advertising | Marketing expense + input VAT |
| Net payout | Transfer to bank: reconcile to the statement |
Download the monthly tax invoices for marketplace fees. Without them you can't recover the input VAT.
2. VAT on marketplace sales
- Your sales to UAE customers are generally standard-rated at 5%. Marketplace prices shown to consumers include VAT, so the VAT is price × 5 ÷ 105.
- The marketplace charges you VAT on its fees and services.
- Check the VAT registration threshold every month as you grow.
3. Cash on delivery
With COD, the courier or marketplace collects cash and remits it later. Record the sale when the order is delivered, and track the COD balance owed to you until it's paid. Failed deliveries and returns need reversing.
4. Returns and refunds
Refunds reduce your sales and output VAT. Returned items that can be resold go back into stock; damaged items are written off. Reimbursements from the marketplace for lost or damaged stock should be recorded, not ignored.
5. Inventory in fulfilment centres
- Stock in Amazon or Noon fulfilment centres is still your inventory.
- Record stock at landed cost: product price, freight, customs duty and clearing charges.
- Move cost to cost of sales as items sell.
- Reconcile your records to the marketplace inventory reports each month and investigate differences.
6. Importing your stock
Goods imported from outside the GCC usually carry customs duty (commonly 5% of the customs value) and import VAT. VAT-registered importers generally account for import VAT through their VAT return, and can recover it at the same time if the goods are used for taxable sales. Keep customs declarations with your purchase records.
7. Know your real margin per product
Selling price − product cost − marketplace fees − fulfilment fees − advertising − returns = what you actually keep. Many sellers discover their best-selling product is barely profitable once fees and returns are included.
Monthly checklist for marketplace sellers
- Download settlement reports and fee tax invoices for every marketplace
- Record sales, refunds and fees gross
- Reconcile payouts to the bank
- Reconcile inventory to marketplace reports
- Track COD balances
- Review margin by product
Bookkeeping built for online sellers
We reconcile Amazon.ae, Noon and Shopify settlements, track your stock and get VAT right on every sale.