Professional services

Accounting for engineering consultancies in the UAE

For engineering and design consultancies in the UAE working for developers, contractors and government clients. Aqid ERP invoices each design or supervision stage in AED, holds retention in its own receivable until handover, shows what every project earns after subconsultants and staff, and prepares the VAT 201 and PINT AE e-invoices.

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Starts set up for Services and consulting

Sign up as this kind of business and the books start with the accounts it posts to, beyond the country's chart:

  • 4130 — Professional fees
  • 1230 — Unbilled time and fees
  • 5140 — Subcontracted services

It also sets the invoice terms, whether prices include VAT, and the setup steps that matter for it. You can change it later, and nothing you have is removed.

Start with this setup

In short

For engineering and design consultancies in the UAE working for developers, contractors and government clients. Aqid ERP invoices each design or supervision stage in AED, holds retention in its own receivable until handover, shows what every project earns after subconsultants and staff, and prepares the VAT 201 and PINT AE e-invoices. Aqid ERP lays out the FTA's VAT 201 from the books, generates every invoice as signed PINT AE XML for the 2027 e-invoicing mandate and runs payroll in dirhams with a WPS salary file and end-of-service gratuity. The Growth plan fits, at AED 109 a month, with a 60-day free trial. Not built yet: Aqid ERP has no progress billing by percentage of completion and no payment applications, so you raise each stage invoice yourself.

At a glance

ForEngineering consultancies
E-invoicingPINT AE: signed UBL XML kept with each invoice; sending through an accredited service provider is not yet live (the mandate starts in 2027)
VAT5% standard rate; the VAT 201 is laid out from the books, sales by emirate
PayrollA WPS salary file, end-of-service gratuity, GPSSA pension for Emirati staff, payslips in Arabic and English
StockNot needed by most businesses of this kind
Recommended planGrowth, at AED 109 a month before VAT: payroll with no employee limit for your engineers and draughtspeople, and consolidation if the Dubai office is a separate company. Starter fits an office of up to 5 employees.
PriceAED 109 a month before VAT · 60-day free trial today, no card
Not built yetAqid ERP has no progress billing by percentage of completion and no payment applications, so you raise each stage invoice yourself.

How it runs

Stage invoices with retention

When the client approves a stage, raise its invoice. The retention the client holds back moves to its own receivable and stays there until you release it at handover, so the project's last payment is never forgotten in the client balance.

One project, one P&L

Tag stage invoices, subconsultant bills and site visit costs to the project, and allocate engineers' payroll cost to it with a re-tag or an allocation journal. Its P&L, against the project's budget, shows whether the fee is holding up.

Supervision fees every month

Site supervision billed monthly runs as a recurring invoice, issued and emailed on the same day for as long as the site is open, and stopped when the contract ends.

Offices in more than one emirate

An office in Dubai beside the one in Abu Dhabi is a branch with its own commercial registration on its documents and its own balance sheet. Its standard-rated fees reach the VAT 201 under its own emirate.

A month at an engineering consultancy in Abu Dhabi (example)

  1. Say you hold a design contract worth AED 1,200,000.00, invoiced in four stages. The client approves the concept stage, so you invoice AED 300,000.00 plus 5% VAT of AED 15,000.00, AED 315,000.00 in total.
  2. The contract has 10% retention. AED 30,000.00 of the fee moves to the retention receivable, where it stays until handover; the client statement shows AED 285,000.00 due now and AED 30,000.00 of retention outstanding.
  3. A geotechnical subconsultant bills AED 42,000.00 plus AED 2,100.00 VAT against its purchase order. The VAT goes to input VAT and the AED 42,000.00 to the project. Engineers' payroll on the project for the month, AED 120,000.00, is allocated to it after the run.
  4. The design project's P&L shows AED 300,000.00 of revenue against AED 162,000.00 of cost: AED 138,000.00 on the stage. On another site, the monthly supervision invoice of AED 35,000.00 plus AED 1,750.00 VAT goes out on its own.
  5. The VAT 201 shows AED 335,000.00 of standard-rated fees with AED 16,750.00 VAT in box 1a for Abu Dhabi and AED 2,100.00 recoverable in box 9, so AED 14,650.00 is due before other bills. How VAT applies to the retention depends on your contract terms; confirm it with your tax adviser.

The parts you will use

Retention

Retention held on an invoice is tracked in its own receivable until released, so it never gets lost in the client balance.

Projects and cost centres

Revenue, subconsultant bills and expenses tagged to each project and to the branch; payroll cost allocated with a re-tag or allocation journal; a revenue and cost budget and % complete compared with actuals.

Sales and quotes

Fee proposals as quotes that clients accept in the customer portal without an account, then stage invoices, credit notes and statements.

Purchasing and approvals

Purchase orders to subconsultants and an approval limit in AED, so a large bill needs a second sign-off before it is paid.

Payroll

Monthly payroll in AED with the WPS SIF salary file, gratuity accrued every month, bilingual payslips and reminders before residence visas, work permits and passports expire.

Fixed assets

Survey instruments, vehicles and design workstations on the asset register, with depreciation run each month in one click.

VAT and e-invoicing for engineering consultancies

VAT in the UAE is 5% on most goods and services. Aqid ERP charges it on each stage and supervision invoice as your items are set up, tracks input VAT on subconsultant bills as you enter them, and reports standard-rated fees by the emirate of the office that issues them. When and how VAT falls on retention depends on the contract, so confirm it with your adviser; the retention balance is kept apart either way.

Invoices to developers, contractors and government clients are all in the e-invoicing mandate. A firm with revenue of AED 50M or more should already have appointed an accredited service provider, by 30 October 2026, and transmits from 1 January 2027; below AED 50M, appoint one by 31 March 2027 and transmit from 1 July 2027.

Aqid ERP signs every invoice as PINT AE XML now and keeps it with the invoice. It is not an accredited service provider, its connection to one is not yet live, and the VAT 201 figures are entered on EmaraTax by you.

Plans for Engineering consultancies

Starter

For small businesses that need compliant invoicing

77 د.إ / month

  • Compliant tax invoices
  • Customers & quotes
  • Payroll and WPS file for up to 5 employees
Start now for free

Premium

For companies with branches, devices and volume

214 د.إ / month

  • Everything in Growth
  • Branches & devices
  • Your own versioned metrics, consolidation & API
Start now for free

Compare the plans in detail

Questions

Can I hold retention on stage invoices?

Yes. Retention held on an invoice sits in its own receivable until you release it, and the client statement shows it separately from what is due now.

Does it do progress billing by percentage complete?

No. There is no percentage-of-completion billing or payment applications. You raise an invoice for each stage when the client approves it; the project's % complete is for reporting against budget.

When must our invoices go through an accredited service provider?

With revenue of AED 50M or more, from 1 January 2027, with the provider appointed by 30 October 2026. Below that, appoint one by 31 March 2027 and transmit from 1 July 2027. Aqid ERP already produces the signed PINT AE XML; its own connection to a provider is not yet live.

Does payroll follow the June 2026 WPS rules?

It produces the WPS SIF file and, before a run closes, warns when payday is after the 1st or when an engineer has no IBAN and would be paid outside WPS. Since 1 June 2026, 85 percent of wages must go through WPS. Gratuity is accrued in the same run.

Can I see profit per project?

Yes. Tag invoices, subconsultant bills and expenses to the project, allocate payroll cost to it with a re-tag or allocation journal, and run its P&L against its budget.

Can we track hours per engineer?

No. There are no timesheets yet. Engineers' cost is allocated to projects from payroll, by re-tagging the payroll entry or posting an allocation journal.

Appoint your provider before 31 March 2027. Start the books today.

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