Tax Services for
Transportation & Logistics
Companies UAE
The complete 2026 tax guide for UAE transportation and logistics companies — VAT on freight, local transport, warehousing, customs clearance, fleet management tax, Corporate Tax optimisation, QFZP free zone logistics, and specialist UAE transport sector tax advisory.
UAE transportation and logistics companies operate in one of the world's most strategically important trade hubs — with Dubai's Jebel Ali Port (the world's largest man-made harbour), Abu Dhabi's Khalifa Port, and Dubai International Airport collectively making the UAE the logistics gateway between East and West. The tax framework for logistics companies in the UAE is uniquely complex: UAE VAT applies differently to international freight (zero-rated), domestic UAE freight (5%), local passenger transport (zero-rated), warehousing (5%), customs clearance services (5%), and the numerous ancillary services logistics providers bundle into their invoices. Corporate Tax applies at 9% above AED 375,000 profit — but with significant QFZP free zone optimisation opportunities for JAFZA, KIZAD, and other logistics free zone entities. Fleet management creates substantial depreciation claims. Reverse charge applies to every overseas logistics software subscription and GPS tracking platform. And transfer pricing on intercompany logistics service arrangements in multinational 3PL groups is an active UAE CT scrutiny area. This comprehensive 2026 guide covers every material tax obligation and planning opportunity for UAE transport and logistics companies — VAT by transport mode and service type, fleet tax accounting, free zone logistics tax structures, customs duty and Designated Zone strategy, Corporate Tax optimisation, payroll for transport workers, transfer pricing for 3PL networks, and how OneDeskSolution provides specialist UAE transport and logistics tax advisory.
🌍1. UAE Transport & Logistics Tax Landscape 2026
The UAE's logistics sector is one of the country's most economically significant industries — contributing approximately 14–15% of GDP and anchored by world-class infrastructure including Jebel Ali Free Zone (the world's largest free zone), DP World's global port operations, Emirates SkyCargo (one of the world's top 10 air freight carriers), and a road network that connects the UAE to Saudi Arabia and the broader GCC. The combination of strategic geography, world-class port and airport infrastructure, and a business-friendly regulatory environment makes the UAE the world's third-largest re-export hub.
For logistics and transport companies operating in this environment, the UAE's tax framework in 2026 creates both obligations and significant planning opportunities. The VAT treatment of logistics services is highly fact-specific: whether a particular freight service is zero-rated or standard-rated depends on the mode of transport, the origin and destination of goods, the nature of the service being provided, and whether the company is acting as carrier, freight forwarder, customs broker, or warehousing provider — sometimes in the same transaction. Getting this analysis wrong — either under-declaring output VAT on standard-rated services or incorrectly zero-rating domestic logistics supplies — creates FTA audit exposure that is disproportionately large for high-revenue logistics businesses.
Corporate Tax at 9% has applied since 2023, and the logistics sector's typical structure — with significant free zone operations (JAFZA, KIZAD, DIFC logistics entities) qualifying for QFZP 0% CT, and mainland operations potentially at 9% — makes entity structure and inter-company service arrangement analysis critical for every transport and logistics group operating in the UAE.
Specialist Tax Advisory for UAE Transport & Logistics Companies
OneDeskSolution's logistics tax team handles the complex VAT, Corporate Tax, fleet depreciation, QFZP monitoring, and transfer pricing requirements of UAE transport and logistics businesses. Contact us today.
🚚2. Types of UAE Transport & Logistics Companies
Road Freight & Trucking
UAE domestic and GCC cross-border road freight; LTL and FTL; flatbed, reefer, tanker; last-mile delivery
Air Freight Forwarder
IATA-accredited air cargo agents; consolidation; express courier; temperature-controlled pharmaceuticals; perishables
Sea Freight Forwarder
FCL and LCL ocean freight; port agency; NVOCC; container booking; Jebel Ali and Khalifa Port traffic
Warehousing & 3PL
Bonded and non-bonded warehousing; third-party logistics; value-added services; pick and pack; inventory management
Customs Brokerage
UAE Customs clearance; duty calculation and payment; import/export documentation; ATA Carnet; FTA trade compliance
Fleet Services & Courier
Last-mile e-commerce delivery; same-day courier; owned fleet; driver management; vehicle leasing
| Logistics Business Model | Primary Revenue | Key VAT Issue | CT Consideration |
|---|---|---|---|
| Road freight (UAE domestic) | Freight charges per shipment | 5% VAT on domestic freight — commonly misclassified as zero-rated | 9% or SBR for small operators; fleet depreciation deduction critical |
| International freight forwarder | Freight charges + handling fees | International transport: 0%; agent service fee: 5%; mixed invoices require careful apportionment | QFZP 0% if JAFZA/free zone entity with qualifying income >95% |
| Warehousing / 3PL | Storage, handling, value-added service fees | 5% VAT on all warehousing and 3PL services (including Designated Zone internal services) | 9% mainland; QFZP 0% if qualifying free zone; service fee TP on intercompany |
| Customs broker | Brokerage fee + government fee pass-through | Service fee: 5%; government customs duty: pass-through (disbursement or recharged); distinction critical | 9% or SBR; commission income model; mostly service company |
| Last-mile / e-commerce courier | Per-delivery charges | 5% VAT on domestic courier — high volume = high underdeclared exposure if misclassified | 9%; vehicle fleet depreciation; substantial driver payroll costs |
💰3. VAT on Transport Services — Complete Guide
| Transport Service | VAT Treatment | Rate | Key Conditions & Notes |
|---|---|---|---|
| International air freight (UAE origin/destination) | Zero-Rated | 0% | Supply of international transport of goods by air is zero-rated. Includes the main carriage — not ancillary services (handling, trucking) which are standard-rated |
| International sea freight (UAE ports) | Zero-Rated | 0% | International sea transport of goods (FCL, LCL) — zero-rated. Port handling, container stuffing, domestic pre-carriage: 5% |
| Domestic UAE road freight (inter-emirate) | Standard-Rated | 5% | Road freight between UAE cities (Dubai–Abu Dhabi, Dubai–Sharjah, etc.) is a domestic UAE supply — 5% VAT. Most commonly misclassified service in UAE logistics |
| Local UAE passenger transport (licensed) | Zero-Rated | 0% | Local public bus services, licensed taxis (licenced transport authority vehicles) — zero-rated. Private car hire for events: 5% |
| GCC cross-border road freight | Analyse per leg | 0%–5% | UAE leg of GCC transport: potentially 5%. International (outside GCC) leg: potentially 0%. Separate billing per leg or carefully apportion composite invoices |
| Air freight handling charges (UAE) | Standard-Rated | 5% | Cargo handling at UAE airports; ramp handling; cargo build-up and break-down — ancillary to transport, not the transport itself |
| Sea freight port handling / stevedoring | Standard-Rated | 5% | Port services, container handling, stripping and stuffing — 5% VAT as ancillary logistics services |
| Last-mile delivery (e-commerce courier UAE) | Standard-Rated | 5% | Domestic delivery service — 5% VAT on every delivery charge. High-volume businesses with hundreds of daily deliveries — VAT compliance critical |
| Vehicle rental / fleet leasing (no driver) | Standard-Rated | 5% | Supply of vehicle without driver is a goods rental supply — 5% VAT |
| Freight forwarding agency fee (on international shipment) | Standard-Rated | 5% | The freight forwarder's service fee / agency commission — 5% VAT even when the underlying transport is zero-rated. Service fee must be separately itemised |
The Biggest UAE Logistics VAT Error — Zero-Rating Domestic Road Freight: The single most common and most costly VAT error in UAE logistics is zero-rating domestic UAE road freight (Dubai to Abu Dhabi, Emirates to Emirates) on the mistaken assumption that "freight = international transport = zero-rated." UAE domestic road freight between UAE cities is standard-rated at 5% VAT — only international transport outside the UAE is zero-rated. A trucking company moving goods from Dubai to Abu Dhabi must charge 5% VAT on every invoice. A company doing AED 500,000/month of domestic road freight and zero-rating it all has AED 25,000/month of underdeclared output VAT — AED 300,000/year — with a potential FTA penalty of AED 150,000 on discovery.
🏭4. VAT on Logistics, Warehousing & Ancillary Services
| Logistics Service | VAT Rate | Notes |
|---|---|---|
| Warehousing / storage (UAE mainland) | 5% Standard | Storage and warehousing of goods in UAE mainland is a standard-rated supply — 5% VAT on every storage invoice |
| Warehousing in Designated Zone | Complex — analyse transaction type | Storage inside a DZ: if supplied to a DZ entity — potentially outside UAE VAT scope. If supplied to a UAE mainland entity: 5% VAT applies. Specific DZ VAT rules must be applied carefully per transaction |
| Pick and pack services | 5% Standard | Value-added logistics services — 5% VAT; typically part of a 3PL service bundle |
| Customs clearance service fee | 5% Standard | The customs broker's service fee is 5% VAT. Government customs duty paid to FCA is a disbursement or recharged cost — not subject to VAT (see below) |
| Government customs duty (pass-through) | No VAT on duty itself | Customs duty paid to FCA on behalf of the importer — this is a government levy, not a taxable supply. Pass-through at cost with no VAT added. Separately itemise from service fee |
| Freight insurance brokerage | Complex | Insurance itself may be exempt; freight forwarder's commission for arranging insurance — potentially 5% on commission. Seek specific advice |
| Cargo tracking / telematics services | 5% Standard | Technology services — 5% VAT if UAE provider; reverse charge if overseas SaaS tracking provider |
| Cold chain management services | 5% Standard | Temperature-controlled logistics — 5% VAT on the complete cold chain service (including transport element where domestic) |
| Project cargo / heavy lift services | 5% Standard | Specialised project cargo handling in UAE — 5% VAT on service fees. International portion of project freight movement: zero-rated |
✈️5. International Freight & Zero-Rating Rules
International freight transport is zero-rated under UAE VAT — but the conditions for zero-rating international freight services require careful analysis, particularly for freight forwarders who arrange transport but may not be the actual carrier, and for mixed domestic/international supply chains.
| Scenario | VAT Treatment | Documentation Required |
|---|---|---|
| UAE shipper → overseas destination (air/sea) | Zero-Rated (0%) — international transport of goods originating in UAE to overseas destination | Airway bill (AWB) or Bill of Lading (B/L) confirming overseas destination; proof of departure from UAE |
| Overseas origin → UAE destination (import) | Zero-Rated (0%) — international transport of goods from overseas into UAE | Import airway bill / B/L; commercial invoice from overseas; UAE customs entry |
| Freight forwarder acts as AGENT for carrier | Service fee: 5% VAT (on forwarder's fee only) — transport itself zero-rated; forwarder's agency fee is a UAE service supply at 5% | Separate invoice for forwarder fee vs. carrier cost; engagement letter confirming agency nature |
| Freight forwarder acts as PRINCIPAL (own account) | Forwarder bills customer for full transport cost — zero-rate the transport element; 5% on service fee | Invoice apportioning zero-rated transport from 5% service fee; subcontracted carrier invoices |
| Domestic pre-carriage + international main leg | Split invoice: domestic pre-carriage 5% VAT; international main carriage 0% VAT | Separate line items on invoice clearly identifying domestic and international portions; transport documentation |
| International transhipment through UAE (goods never enter UAE market) | Outside UAE VAT scope or zero-rated — goods transiting UAE without entering domestic market | Transhipment documentation; bonded transit records; UAE Customs transit entry; goods not entering UAE free circulation |
The Door-to-Door Invoice Complexity: Many UAE freight forwarders invoice clients with a single door-to-door price that bundles zero-rated international transport with standard-rated ancillary services (origin handling, UAE customs clearance, delivery to door). The FTA requires that where a supply includes both zero-rated and standard-rated elements, the invoice must clearly identify and separately quantify each element — not provide a single blended total. A freight forwarder that invoices AED 10,000 for a door-to-door airfreight service must identify, for example: main carriage (0% VAT): AED 7,500; UAE import handling (5% VAT): AED 500 + AED 25 VAT; customs clearance fee (5% VAT): AED 200 + AED 10 VAT; UAE delivery (5% VAT): AED 300 + AED 15 VAT. Single-line invoices are non-compliant and a consistent FTA audit finding in the logistics sector.
Logistics VAT is Complex. We Know It Inside Out.
OneDeskSolution provides specialist VAT services for UAE transport and logistics companies — freight VAT classification, invoice structure compliance, quarterly returns, QFZP monitoring, and FTA audit defence. Contact us today.
🏛️6. Customs Duty & Designated Zone Strategy
- UAE Customs duty rates: The UAE applies GCC Common External Tariff (CET) rates — generally 5% on most goods, with 0% on specific goods (including many food items, pharmaceuticals, and production equipment). Customs brokers and freight forwarders must ensure accurate HS code classification for all cargo — incorrect classification creates either overpayment (losing competitive pricing) or underpayment (FCA compliance risk)
- Designated Zone (DZ) customs duty deferral: Goods imported into a Designated Zone (JAFZA, KIZAD, Hamriyah, Sharjah Airport Freezone, and others) do not incur UAE customs duty until the goods are released into UAE free circulation. Goods re-exported from the DZ to overseas destinations pay no UAE customs duty. This is the key economic advantage of DZ warehousing for import/distribution companies
- DZ to DZ supplies — VAT treatment: Supplies of goods between two Designated Zone entities (both genuinely in DZ) are treated as outside the UAE VAT scope — no UAE VAT applies on the transaction. However, this requires both supplier and buyer to be genuinely in Designated Zones — if either party has a mainland UAE presence receiving the goods, the supply becomes a UAE taxable supply
- DZ to UAE mainland — customs duty and VAT: When goods move from a Designated Zone to the UAE mainland, this is treated as an import into UAE — customs duty becomes payable, and the mainland entity pays import VAT (recoverable as input VAT if VAT-registered). This movement must be correctly documented with UAE Customs
- Customs broker role in DZ transactions: UAE customs brokers facilitate the documentation for DZ-to-mainland transfers. Their service fee (not the customs duty itself) is 5% VAT. The customs duty paid on behalf of the importer is a disbursement — passed through at cost with no VAT applied to the duty amount itself
💼7. Corporate Tax for UAE Logistics Companies
| Company Profile | CT Rate | Conditions | Key CT Actions |
|---|---|---|---|
| JAFZA / KIZAD free zone logistics (QFZP) | 0% on qualifying income | Qualifying income >95%; UAE substance; TP on intercompany service arrangements with group | Annual QFZP election; income split monitoring; substance documentation; CT 201 filing |
| Mainland freight company / trucking firm | 9% above AED 375K profit | Standard CT; IFRS taxable income; fleet depreciation deductible | Quarterly CT provision; fleet depreciation maximisation; annual CT 201 return |
| Small logistics company (SBR) | 0% via SBR election | Revenue below AED 3M; annual SBR election in CT return | Active SBR election each year; CT registration mandatory regardless |
| Multimodal 3PL group (mixed structure) | Depends on entity structure | Free zone entities: QFZP; mainland entities: 9%; intercompany TP documentation required | Entity-by-entity CT assessment; group TP policy; CT 201 for each entity |
✅ Key CT Deductible Expenses for UAE Logistics Companies
- Fleet depreciation (IAS 16): Trucks, vans, forklifts, material handling equipment, refrigerated vehicles — all capitalised under IAS 16 and depreciated over useful life. Heavy commercial vehicles: 5–8 years; forklifts: 5–7 years; vans and light commercial: 3–5 years. Annual depreciation is fully CT-deductible. For large fleet operators, this is often the most significant CT deduction
- Fuel costs: Diesel and petrol for owned fleet — fully deductible as operating costs. Maintain fuel cost records by vehicle where possible for management accounts
- Driver and staff salaries + EOSB: All driver, warehouse operative, dispatcher, and management salaries — fully deductible including EOSB accrual, housing allowance, health insurance
- Warehouse and yard lease costs: Facility rent for warehouses, truck yards, container depots — deductible. IFRS 16 right-of-use assets for leases exceeding 12 months must be recognised on the balance sheet
- Vehicle maintenance and tyres: Regular servicing, tyre replacement, roadworthy inspections — deductible as fleet operating costs. Keep vehicle maintenance records for audit support
- Interest on vehicle finance (50%+ leveraged fleets): Finance costs on vehicle purchase loans subject to UAE CT net interest limitation (30% of tax EBITDA). High-debt fleet financing structures should model this limitation before year end
- Fines and traffic penalties — 100% non-deductible: Traffic violations, port authority penalties, customs fines — fully non-deductible. Add back 100% in CT return. Maintain separate fines account for easy identification
🚛8. Fleet Management & Vehicle Tax Accounting
| Fleet Asset | IAS 16 Useful Life | Annual Depreciation (AED 500K asset) | CT Deductibility | VAT on Purchase |
|---|---|---|---|---|
| Heavy commercial truck (40t) | 6–8 years | AED 62,500–83,333/year | Fully deductible | 5% VAT — recoverable input |
| Refrigerated trailer / reefer unit | 7–10 years | AED 50,000–71,429/year | Fully deductible | 5% VAT — recoverable input |
| Light delivery van | 3–5 years | AED 100,000–167,000/year | Fully deductible | 5% VAT — recoverable input |
| Forklift / warehouse equipment | 5–8 years | AED 62,500–100,000/year | Fully deductible | 5% VAT — recoverable input |
| Warehouse racking and shelving | 10–15 years | AED 33,333–50,000/year | Fully deductible | 5% VAT — recoverable input |
| Management / sales passenger car | 3–5 years | AED 100,000–167,000/year | Deductible if business use documented; personal use portion non-deductible | 5% VAT — 50% input recovery (DFCA ruling for passenger cars) |
Passenger Car VAT Input Recovery — The 50% Rule: For passenger cars (not commercial vehicles), UAE VAT rules apply a 50% restriction on input VAT recovery — the rationale being that passenger cars are partially used for private purposes. This applies to saloon cars, SUVs, and MPVs used by management and sales staff. Commercial vehicles (trucks, vans, forklifts, goods vehicles) used exclusively for business purposes have full 100% input VAT recovery. Logistics companies should maintain a fleet register clearly distinguishing commercial vehicles (full input VAT recovery) from passenger cars (50% restricted). This distinction must be consistently applied in quarterly VAT returns.
📊 Fleet Tax Benefit Illustration — Typical UAE 50-Vehicle Trucking Company
🏢9. QFZP Optimisation for Free Zone Logistics Companies
| Free Zone | Logistics Advantage | QFZP Qualifying Income | Key Monitoring Required |
|---|---|---|---|
| JAFZA (Jebel Ali) | World's largest free zone; Jebel Ali Port proximity; Designated Zone; bonded warehousing; 100% foreign ownership | International freight forwarding to overseas clients; GCC trade services; free zone-to-free zone warehousing | UAE mainland customer revenue must stay below de minimis (5% of revenue / AED 5M); TP on management fees from parent |
| KIZAD (Khalifa Industrial Zone) | Khalifa Port access; manufacturing and logistics integration; large industrial plots; Designated Zone | International and GCC logistics services; freight forwarding for overseas clients; free zone entity services | Monitor UAE mainland client revenue; substance documentation — physical logistics operations in KIZAD required |
| Dubai South Free Zone | Al Maktoum Airport proximity; airfreight and e-commerce logistics ecosystem; aviation MRO cluster | Airfreight forwarding; international e-commerce logistics; aviation supply chain services for overseas clients | Airport proximity value must be substantiated with real operations; revenue mix monitoring |
| Hamriyah Free Zone (Sharjah) | Hamriyah Port; oil and gas logistics cluster; industrial manufacturing support logistics | International shipping and logistics for overseas clients; industrial supply chain management | QFZP-eligible; lower cost than Dubai free zones for smaller logistics operators |
The JAFZA QFZP De Minimis Challenge: Many JAFZA logistics companies have grown their UAE mainland corporate client base significantly — Dubai government logistics contracts, UAE retail chain distribution, and UAE manufacturing supply chain management. As this UAE mainland revenue grows, free zone logistics companies must actively monitor whether their UAE mainland client revenue is approaching the QFZP de minimis threshold (lesser of 5% of total revenue or AED 5M). Exceeding the threshold in any year means the company loses QFZP status for that entire year — and all income becomes subject to 9% CT. Monthly revenue tracking by client geographic category is essential for every free zone logistics company claiming QFZP status.
🔄10. Reverse Charge on Logistics Software & Tools
- TMS (Transportation Management Systems) — overseas: Oracle TMS, SAP TM, JDA, MercuryGate — annual or monthly subscriptions from overseas providers trigger 5% reverse charge VAT. Declare in Box 3 of quarterly VAT 201; recover in Box 10. Net cash impact: zero for fully taxable logistics companies — but 50% FTA penalty if undeclared
- WMS (Warehouse Management Systems) — overseas: Manhattan Associates, Blue Yonder, HighJump, Oracle WMS — all overseas SaaS subscriptions carry monthly reverse charge obligations
- GPS fleet tracking and telematics — overseas providers: Samsara, Geotab, Motive, Trimble — recurring subscription invoices from overseas trigger reverse charge on every billing period
- Freight rate management platforms: Freightos, INTTRA, CargoWise, WISEGRID — overseas logistics platforms trigger reverse charge on subscription fees
- Customs and trade compliance software: Amber Road, Thomson Reuters ONESOURCE — overseas trade compliance SaaS trigger reverse charge
- Cloud infrastructure for logistics platforms: AWS, Azure, Google Cloud — all overseas infrastructure costs trigger reverse charge VAT on all billing periods, including usage-based charges
🌐11. Transfer Pricing for 3PL Networks
- Intercompany freight charges: Where a UAE logistics company provides freight forwarding, warehousing, or distribution services to a related overseas company — the charges must be at arm's length. Benchmark against comparable third-party logistics service rates using comparable uncontrolled price (CUP) or cost-plus methodology
- Management fees from overseas parent: Head office management fees charged to the UAE entity for group services (IT, HR, finance, strategy) — must be at arm's length. Fees must relate to genuine services actually provided; the benefit to the UAE entity must be documented. Inflated management fees that reduce UAE CT taxable income are an FTA audit red flag
- TP Local File: UAE logistics companies with related-party transactions exceeding AED 3M in a year must prepare a Transfer Pricing Local File and submit a Disclosure Form with the CT return. UAE logistics multinationals typically exceed this threshold within months through equipment leasing, management fees, and freight agency arrangements
- Cost sharing arrangements: Where UAE and overseas group entities share fleet costs, technology platform costs, or insurance costs — the cost allocation methodology must be documented and defensible. Equal-split arrangements without an economic rationale will not withstand FTA scrutiny
- Master File requirement: For UAE entities in groups with global consolidated turnover above AED 3.15B (EUR 750M) — a Master File may be required in addition to the Local File. Applicable to the UAE entities of the world's largest logistics groups (DHL UAE, Maersk UAE, etc.)
👥12. Payroll & Driver Employment Tax
| Employee Category | Key Payroll Note | EOSB Basis | CT Treatment |
|---|---|---|---|
| Heavy vehicle driver | UAE driving licence (heavy vehicle category) required; must be on WPS; EOSB accrual from day one | Basic salary only — not transport allowance or overtime | Fully deductible — major CT cost for fleet operators |
| Warehouse operative | Health and safety training required for forklift operation; WPS mandatory | Basic salary only | Fully deductible |
| Customs officer / logistics coordinator | For customs brokers — staff require MBRGI (Mohammed Bin Rashid Government Initiatives) Customs clearance certification in Dubai; FCA accreditation | Basic salary only | Fully deductible |
| Operations manager / dispatcher | Standard employment contract; WPS; EOSB on basic salary | Basic salary only | Fully deductible |
| Owner / Managing Director | Investor visa (if corporate shareholder); employment contract (if company paying salary); salary deductible if arm's-length | Only if on employment contract | Salary deductible; dividend distributions not deductible from CT |
📅13. Annual Tax Compliance Calendar — Transport & Logistics
Revenue classification: domestic freight (5% VAT) vs. international freight (0% VAT) vs. logistics services (5%). Reverse charge calculation on all overseas TMS/WMS/telematics subscriptions. Fleet fuel and maintenance cost recording. EOSB accrual for all drivers and staff. WPS payroll processing. QFZP income split monitoring (free zone entities).
File VAT 201. Box 1: domestic road freight (5%); logistics/warehousing services (5%); handling charges (5%). Box 4: international freight (0%). Box 3: reverse charge on overseas TMS/WMS/GPS software. Box 10: input VAT on fleet purchases and operating costs. Pay net VAT due. Reconcile to revenue records.
File Q1 VAT. Review freight invoice structure — confirm domestic vs. international classification is correctly applied. CT provision update. QFZP income split mid-year review for JAFZA/KIZAD entities. Review intercompany TP arrangements for H1 transactions.
File Q2 VAT. Mid-year CT estimate. Fleet depreciation review — confirm all vehicle additions and disposals are reflected in fixed assets register. Review customs duty disbursement vs. service fee invoicing — ensure correct separation on all client invoices.
File Q3 VAT. Full-year CT estimate. QFZP income split — confirm qualifying income threshold will be maintained through year end. Year-end planning: timing of major fleet purchases for depreciation in current year. TP Local File preparation for entities with related-party transactions above AED 3M.
IFRS financial statements and statutory audit. Fleet fixed assets register verification. EOSB provision review. DZ VAT treatment confirmation. Customs duty compliance documentation. Engage MoE-registered auditor with logistics sector experience.
File CT 201. QFZP election (free zone entities); SBR election (small operators); fleet depreciation claims; interest limitation modelling (high-leverage fleets); TP Disclosure Form (if related-party transactions > AED 3M); fines 100% add-back; entertainment 50% add-back. Pay CT due.
🏆14. Our Transport & Logistics Tax Services
VAT Classification Review
Freight service VAT analysis: domestic (5%) vs. international (0%); invoice structure compliance; mixed supply apportionment
Quarterly VAT Returns
Full VAT 201: freight, logistics, handling fees; reverse charge on overseas software; input VAT on fleet and ops costs
QFZP Monitoring
Monthly income split: UAE mainland vs. international clients; de minimis alerts; substance documentation; annual election
Fleet Tax Accounting
Fixed assets register; IAS 16 depreciation schedules; vehicle VAT input recovery; fuel and maintenance cost tracking
Transfer Pricing
TP Local File; freight charge benchmarking; management fee documentation; cost allocation methodology review
FTA Audit Defence
Registered Tax Agent representation; freight VAT classification defence; zero-rating documentation; voluntary disclosures
❓15. Frequently Asked Questions
Expert Tax Partner for UAE Transport & Logistics Companies
From freight VAT classification and quarterly returns through QFZP monitoring, fleet depreciation, transfer pricing, customs duty management, and FTA audit defence — OneDeskSolution provides specialist tax services for UAE transport and logistics businesses of every size. Contact us for a free consultation today.
