Professional services

Accounting for law firms in the UAE

For law firms and legal consultancies in the UAE, on the mainland or in a free zone. Aqid ERP bills retainers and fixed fees in AED or the client's currency, keeps client advances in their own account, shows what each matter earns, and prepares the VAT 201 and PINT AE e-invoices for 2027.

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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 law firms and legal consultancies in the UAE, on the mainland or in a free zone. Aqid ERP bills retainers and fixed fees in AED or the client's currency, keeps client advances in their own account, shows what each matter earns, and prepares the VAT 201 and PINT AE e-invoices for 2027. 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 timesheets and no hourly billing, so fees are billed as fixed amounts, stages or retainers.

At a glance

ForLaw firms
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 and invoices in the client's currency. A sole practitioner or small firm with up to 3 users and 5 employees can start on Starter at AED 77.
PriceAED 109 a month before VAT · 60-day free trial today, no card
Not built yetAqid ERP has no timesheets and no hourly billing, so fees are billed as fixed amounts, stages or retainers.

How it runs

Retainers on a schedule

A monthly retainer is a recurring invoice, issued on the day you choose and emailed without anyone remembering to. A retainer invoiced a year in advance is recognised as revenue month by month, so the P&L does not spike in the month you bill it.

Client advances kept apart

Money a client pays up front for court, expert or translation fees goes to a liability account of its own in the chart of accounts and is applied when you bill. How VAT applies to advances and to costs you pay for a client is a point to settle with your tax adviser.

One matter, one P&L

Tag each fee invoice, disbursement and lawyer's expense claim to a project for the matter or the client. Its P&L shows what the matter earned after costs, and its budget shows how far through the agreed fee you are.

Engagement letters as quotes

Send the fee proposal as a quote the client accepts in the customer portal without creating an account. Turn it into the first invoice when the work starts, and keep the accepted quote with the matter.

A month at a law firm in Dubai (example)

  1. Say a company client signs a one-year retainer of AED 96,000.00 and you invoice it up front: AED 96,000.00 plus AED 4,800.00 VAT, AED 100,800.00. Aqid ERP recognises AED 8,000.00 of revenue each month.
  2. A second client agrees a fixed fee of AED 50,000.00 for a commercial dispute, billed in two halves. The first invoice is AED 25,000.00 plus AED 1,250.00 VAT, AED 26,250.00, with a payment link once a payment provider is connected.
  3. The same client pays an advance of AED 15,000.00 towards court and expert fees. It is posted to the client-advances liability account, not to revenue, and drawn down as those costs are passed on.
  4. A lawyer claims AED 900.00 plus AED 45.00 VAT for travel to a hearing in Abu Dhabi, tagged to the dispute. The matter's P&L shows AED 25,000.00 billed against AED 900.00 of costs so far.
  5. The VAT 201 picks up the invoices issued in the period: AED 121,000.00 of standard-rated sales with AED 6,050.00 VAT in box 1b for Dubai, and AED 900.00 of expenses with AED 45.00 VAT in box 9, so AED 6,005.00 is due before the office's other bills.

The parts you will use

Sales

Fee quotes, tax invoices, recurring retainer invoices, credit notes tied to the invoice they correct, payment links once a payment provider is connected, email reminders, and statements by email or WhatsApp.

Projects and cost centres

Each matter, client or practice area as a project or cost centre, with its own P&L and a fee budget to compare with actuals.

Accounting

A UAE chart of accounts in Arabic and English with a liability account you add for client advances, bank reconciliation, deferred revenue for retainers billed in advance, and periods you lock once the VAT 201 is filed.

Expense claims

Lawyers claim travel, filing and translation costs; approved claims are tagged to the matter and paid.

Payroll

Monthly payroll in AED for lawyers, paralegals and support staff, with the WPS SIF file, gratuity accrued every month and bilingual payslips.

Roles and audit log

Partners see everything; associates and staff see what their role allows. Every change is in the audit log, and two-step sign-in protects client data.

VAT and e-invoicing for UAE law firms

VAT in the UAE is 5% on most goods and services. How it applies to your fees, and above all to clients outside the UAE, depends on the client and the service, so agree it with your tax adviser before you set it on the invoice. Aqid ERP reports standard-rated fees by the emirate of the office that issues them, box 1b for Dubai, box 1a for Abu Dhabi.

Your invoices to companies and government are in the e-invoicing mandate, whether the firm is on the mainland or in a free zone. A firm under AED 50M in revenue appoints an accredited service provider by 31 March 2027 and transmits from 1 July 2027.

Every invoice is already signed as PINT AE XML and kept with it. Aqid ERP is not an accredited service provider and its connection to one is not yet live; you enter the VAT 201 on EmaraTax yourself.

Plans for Law firms

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 bill by the hour from timesheets?

No. There are no timesheets or hourly billing. Bill fixed fees, stages or monthly retainers, and tag them to the matter.

How are client advances handled?

In a liability account of their own in the chart of accounts, applied when you bill the costs on. Ask your tax adviser how VAT applies to the advance and to the costs you pass on.

Can I invoice a client abroad in dollars or pounds?

Yes, on Growth and Premium. The tax invoice shows the AED equivalent and the ledger stays in AED. The VAT treatment of fees to a client outside the UAE is for your tax adviser to confirm.

Can our firm use Small Business Relief for corporate tax?

Aqid ERP's estimate tests it: revenue of AED 3M or less in the period and every earlier one, for tax periods ending by 31 December 2029. It refuses the election for a qualifying free zone person or a member of a multinational group. Whether you elect it is your adviser's call, and the return is filed on EmaraTax.

We are in the DIFC. Does e-invoicing apply to us?

Under current guidance free-zone companies are in scope on the same terms as mainland ones. Below AED 50M in revenue, appoint an accredited service provider by 31 March 2027 and transmit from 1 July 2027; confirm your case with the FTA.

Can I see profit per matter or client?

Yes. Tag invoices, disbursements and claims to a project for the matter or client, allocate lawyers' salary cost from the payroll entry, and run its P&L.

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

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