If you run a business in the UAE, keeping your accounting records is not only about recording sales and expenses. Your business must also be able to maintain, protect, and provide those records when required by the Federal Tax Authority (FTA).
The UAE Federal Tax Authority has introduced FTA Decision No. 4 of 2026, which sets out specific rules and requirements for maintaining information contained in accounting records and commercial books.
The decision was issued on 2 June 2026 and became effective on 30 July 2026. The FTA published it on its website on 20 August 2026.
For businesses using digital accounting systems, scanned documents, photocopies, cloud storage, or outsourced bookkeeping, these requirements are particularly important.
What Is FTA Decision No. 4 of 2026?
FTA Decision No. 4 of 2026 provides rules for how businesses must maintain the information contained in their accounting records and commercial books, particularly where records are maintained as electronic copies or photocopies.
The purpose is simple. The information supporting a business’s tax position should remain reliable, complete, readable, and available when the FTA needs to verify it.
The decision is part of the UAE’s broader tax compliance framework and is relevant to businesses maintaining records for their tax obligations.
What Has Changed for UAE Businesses?
The important point is that keeping a file somewhere is not enough.
If your business maintains accounting records or commercial books as electronic copies or photocopies, the records need to meet specific standards.
In practical terms, businesses should make sure their records are:
- Complete
- Identical to the original information
- Clear and easily readable
- Properly stored
- Accessible when required
- Supported by appropriate documentation
- Available for FTA verification
This is particularly important for businesses that have moved from paper-based accounting to digital bookkeeping.
Can UAE Businesses Keep Accounting Records Electronically?
Yes, Businesses can maintain information from accounting records and commercial books electronically, provided the requirements under the applicable rules are met.
An electronic copy should preserve the information contained in the original document and remain accessible and readable.
For example, if a business scans a supplier invoice and keeps only the digital version, the stored copy should accurately reproduce the information contained in the original document.
Simply taking a low-quality photograph of a document and saving it somewhere is not a good record-keeping process.
Your accounting system and document-storage process should allow records to be located and produced when required.
Electronic Copies Must Be Complete
One of the most important points for businesses is completeness.
Where a document contains multiple pages, the retained copy should contain the complete document rather than only selected pages.
For example, imagine a supplier agreement has seven pages covering:
- Pricing
- Payment terms
- Delivery conditions
- Signatures
- Supporting schedules
Keeping only the signed page would not provide the complete information contained in the original document.
A good digital bookkeeping system should therefore have a process for checking that documents are scanned or stored completely and in the correct order.
Your Digital Records Must Be Clear and Readable
Electronic accounting records should be maintained in a format and quality that allows the information to be clearly viewed and read.
This matters because a document can technically exist but still be difficult to use.
For example:
Poor practice:
A blurred invoice saved as a low-quality image.
Better practice:
A clear electronic copy where the invoice number, date, supplier details, amounts, VAT information, and other relevant information can be easily read.
Businesses should regularly review the quality of their digital records, especially if documents are being scanned in large volumes.
What About Photocopies?
The rules also address records maintained as photocopies.
A photocopy should accurately reproduce the information contained in the original document and remain clear and readable.
Businesses should therefore consider the quality of both the paper and ink when physical copies are retained for the required period.
This is particularly relevant for businesses that still maintain physical accounting files.
Can the FTA Access Electronic Accounting Records?
Businesses should be prepared to provide access to their retained accounting records and commercial books when requested by the FTA.
Where electronic records are protected by passwords or encryption, the requirements include providing the necessary access information, such as passwords or encryption keys, where required for FTA access.
This means businesses should not store important accounting records in a system that nobody can access when the responsible employee is unavailable.
Your company should have a clear internal process for accessing financial records when needed.
What If Your Accounting Is Outsourced?
Many UAE businesses use external accountants or bookkeeping companies.
Outsourcing your bookkeeping does not remove your responsibility for maintaining your business records.
A business may appoint a third party to maintain its accounting records and commercial books, but the business remains responsible for ensuring that the records are properly maintained and protected.
This is why businesses should choose an accounting or bookkeeping provider carefully.
You should know:
- Where your accounting records are stored
- Who can access them
- How documents are backed up
- How quickly records can be retrieved
- How records will be provided if requested by the FTA
- What happens to your records if you change your accounting provider
How Does This Affect UAE Bookkeeping?
The new decision makes proper bookkeeping even more important.
Good bookkeeping is not simply entering transactions into accounting software.
A reliable bookkeeping process should connect your financial transactions with the documents that support them.
For example:
Sales transaction → Sales invoice → Payment record → Bank transaction
And:
Purchase transaction → Supplier invoice → Payment record → Bank transaction
Maintaining this connection helps create a clear financial record and makes it easier to respond to tax queries or verification requests.
What Should UAE Businesses Do Now?
If you operate a business in the UAE, this is a good time to review your accounting and record-keeping process.
1. Review your accounting system
Check whether your accounting software stores financial information accurately and allows records to be retrieved easily.
2. Review your document storage
Make sure invoices, receipts, contracts, bank documents, credit notes, and other supporting documents are properly organised.
3. Check your scanned documents
Make sure electronic copies are complete, clear, readable, and accurately reproduce the original information.
4. Check access controls
Make sure authorised people can access important accounting records when needed.
5. Review outsourced bookkeeping arrangements
If another company maintains your accounting records, confirm that you can still access and retrieve your records whenever required.
6. Prepare for an FTA request
Do not wait until you receive a request from the FTA to discover that an old invoice or supporting document cannot be found.
A properly organised accounting system should make document retrieval straightforward.
UAE Accounting Records Compliance Checklist
Use this quick checklist to review your business:
☐ Accounting transactions are recorded accurately
☐ Supporting invoices and documents are organised
☐ Electronic copies are complete
☐ Scanned documents are clear and readable
☐ Documents can be retrieved easily
☐ Important records are securely stored
☐ Access to accounting records is controlled
☐ Passwords and access arrangements are properly managed
☐ Outsourced accounting records remain accessible to the business
☐ Records can be provided when required by the FTA
Why Proper Bookkeeping Matters
Strong bookkeeping gives your business more than accurate financial statements.
It can help you:
- Understand your actual business performance
- Prepare VAT returns
- Support Corporate Tax compliance
- Reduce accounting errors
- Find financial documents quickly
- Respond to FTA queries
- Prepare for potential tax verification
- Make better business decisions
Good accounting records create a stronger financial foundation for your business.
Final Takeaway
FTA Decision No. 4 of 2026 is a reminder that UAE businesses need to think about not only keeping accounting records, but also how those records are maintained.
If your business uses digital bookkeeping, scanned invoices, cloud accounting, physical copies, or outsourced accounting services, review your current record-keeping process.
Your records should be complete, accurate, readable, secure, and accessible when required.
Taking the time to organise your accounting records now can make tax compliance easier and reduce problems later.
Need Help With Accounting and Bookkeeping in the UAE?
AH Management Consultancy, we help businesses maintain organised accounting and bookkeeping records and support their ongoing UAE tax compliance requirements.
If you are unsure whether your current accounting and record-keeping process meets the latest requirements, speak with our team for professional guidance.
Disclaimer: This article provides general information based on publicly available UAE legislation and FTA information. It should not be treated as specific tax, accounting, or legal advice. Businesses should review the official FTA decision and obtain professional advice based on their individual circumstances.