How UAE Traders Can Track Imports and Exports in Tally

Let’s talk about this: In Q1 of 2025, the United Arab Emirates reported non-oil foreign trade crossing AED 1.7 trillion with a striking 24% growth compared to last year’s 1st half.

In that atmosphere, the challenge for an importer/exporter in Dubai, Sharjah, or Ras Al Khaimah has changed from just keeping records to seeing live insights of goods and staying compliant with the government. It is especially acute for SMEs that juggle multiple suppliers, transit hubs, and shifting customs codes across free zones.

That’s where Tally Software enters, playing a decisive role. If you can configure it properly, the system becomes a nerve center for you: one that can tag, trace, alert, and reconcile trade data, all in sync with statutory compliance and multi-user vs single-user setups.

Setting Up Tally for Imports & Exports

To ensure your Tally works smoothly for trade:

1. Enable VAT & set Country

• Ensure to switch on VAT in your TallyPrime company settings.

• Define Ledgers with Proper Nature of Transactions

• Sales Ledger(s) for exports should have “Export” as the Nature of Transaction.

• Purchases ledgers or expense ledgers should allow capturing input VAT or import VAT / reverse charge.

2. Create Party Ledgers

• For customers outside the GCC or in non-VAT GCC countries, mark them accordingly so Tally can auto-classify their transactions as exports.

• For foreign vendors or suppliers, especially for imports, ensure their party ledger supports recording import details / VAT on import.

Exports: Zero-rated, but not zero-effort

UAE traders export goods and services across the globe, including Saudi Arabia, India, Africa, and Europe. And while exports are usually zero-rated under UAE VAT, that doesn’t mean you can ignore them in your accounting.

Are exports taxable?

Technically, yes, exports are taxable supplies, but at 0% VAT. In simple terms, “zero-rating of export services” means that any service provided to clients outside the GCC, or in those GCC countries where VAT hasn’t been implemented yet, is taxed at a 0% VAT rate. That means you still need to record them properly and include them in your VAT returns. Lots of traders often get confused here by assuming “0%” means “no record needed.”

• Tally in UAE makes this part almost too easy. TallyPrime automatically identifies the sale as an export once you select the customer, and no VAT is calculated on the transaction. You can easily record these exports in TallyPrime using a Sales Voucher.

Steps to Record an Export Sale

First of all, make sure the Nature of Transaction in your Sales Ledger is set to Not Applicable.

• Open Sales Voucher from:

• Now go to the Gateway of Tally, choose Accounting Vouchers, and press F8: Sales.

• In Party A/c Name, choose your registered or unregistered customer from another GCC country (based on their VAT registration status).

• Select the Sales Ledger you use for export transactions.

• Enter your stock item details.

• Choose the required item.

• Enter the Quantity and Rate.

• Once done, review the details and press Ctrl + A to save the voucher.

Imports

Well, if you are receiving goods from outside the UAE into the UAE, the entire supply process is known as import.

Are imports taxable?

Imports into the UAE typically attract VAT at the point of customs. You (importer) need to pay VAT on import. Tally in Dubai supports the handling of reverse charge or import VAT mechanisms.

What is reverse charge?

Reverse charge simply means the buyer (you) reports both the input and output VAT on the same transaction. As per the rules, it’s mainly the liability of the supplier to collect and pay tax to the FTA. But as your supplier is an outsider of the UAE (not registered in the UAE), it has become your responsibility under the reverse charge.

What is the VAT rate applicable to imports?

It’s usually 5%, just like domestic supplies. Tally Customization ensures that imported goods or services are taxed at 5% and correctly reflected in your VAT reports.

Can input tax be recovered on imports?

Yes, you can do that by filling a VAT return, including details about your sales and purchases, as imports come under VAT taxable services.

In Tally Cloud, every import transaction shows your recoverable VAT automatically. When you generate your VAT return, it’s right there, clean and accurate.

Why UAE Traders Are Choosing Tally

Honestly, there are tons of accounting solutions available in the Gulf market. But for most UAE traders, Tally Single User or multi-user just fits right away. It’s simple, yet handles GCC VAT seamlessly.

You can manage everything from one place, including sales, purchases, stock, VAT, reverse charge, and export tracking, without having to jump between multiple systems.

Now, if you want to get expert guidance on configuration, reports, and troubleshooting, you need a local partner. At Penieltech, we have been helping GCC businesses to set their solutions up for years.

So, working with one of the best IT solution providers in the GCC always makes the difference between just “using Tally software” and actually leveraging it for business growth.