Definition

A Chart of Accounts (COA) is the structured list of a company’s financial accounts, used to categorize transactions. In the UAE, it must be tailored to VAT and Corporate Tax reporting.

Key points

• Divided into assets, liabilities, equity, income, and expenses.
• Supports VAT reporting (e.g., separating input and output VAT).
• Essential for accurate bookkeeping and tax compliance.
• Can be customized for WPS, excise, or industry-specific needs.

Practical example

A UAE trading company sets up a COA with accounts for revenue, purchases, VAT payable, and VAT receivable to streamline VAT return preparation.

Why it matters

A clear COA ensures smooth reporting, simplifies audits, and reduces errors in tax returns.