Bookkeeping for franchise businesses
Franchisees pay royalties and marketing fees, often to franchisors abroad, and must send them regular sales reports. We calculate fees correctly, handle the VAT on overseas franchisor charges and give you outlet-level reporting.
Common challenges we fix
- Royalty and marketing fees calculated from sales
- Fees paid to a franchisor outside the UAE
- Several outlets reported separately
- Franchisor reporting deadlines
What we handle for you
- Royalty and marketing fee calculations each period
- Reverse charge VAT on fees from overseas franchisors
- Outlet-level profit and loss
- Sales reports in the format your franchisor needs
- Fit-out costs and franchise fees as assets where appropriate
- Payroll, WPS and VAT returns
Frequently asked questions
Do we pay VAT on royalties to an overseas franchisor?
Royalties and fees from a franchisor outside the UAE are generally imported services, so you account for VAT under the reverse charge in your return and can usually recover it in the same return.
Is there withholding tax on royalties paid abroad?
The UAE's withholding tax rate on payments to non-residents is currently 0%, but the franchisor may face tax in its own country, and related-party fees must follow transfer pricing rules.
Guides for UAE businesses
Bookkeeping for Small Business in UAE: Step-by-Step Guide
Eight simple steps to set up and keep bookkeeping for a UAE small business, with basic examples and the UAE-specific rules you need.
Read the guide →VAT Registration Threshold UAE: Who Must Register?
AED 375,000 mandatory, AED 187,500 voluntary: how the UAE VAT threshold works, how to calculate it and when you must apply.
Read the guide →Corporate Tax Registration Deadline UAE (Including New Companies)
New companies have three months to register for Corporate Tax. Here's how the deadline works, the AED 10,000 penalty and the waiver.
Read the guide →Get your books in order this month
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