What are Sales/Turnover Certificate and Why Is It Required in the UAE?
Having a business in the UAE can bring both excitement and pressure. You may have found yourself stuck while applying for a loan, signing a rental contract, or taking part in a government tender just because you didn’t have the right financial document. This delay can cost opportunities and trust.
One of such critical documents often requested in such scenarios is the Sales or Turnover Certificate. This certificate verifies your business’s income over a specific period and is frequently required by authorities, financial institutions, and landlords in the UAE. Fortunately, with accurate financial records and the support of approved auditors, obtaining this certificate is a straightforward process.
At JCA (Jitendra Chartered Accountants), our team of expert auditors in Dubai can help you obtain this vital document efficiently and accurately.
What Are Sales/Turnover Certificate?
A Sales or Turnover Certificate is an official document issued by a licensed auditor in the UAE. It certifies the revenue your business has generated over a specified period. This certificate serves as a verified record of your total sales, validated by an independent professional who adheres to the financial and regulatory standards applicable in the UAE.
Why Is It Required in the UAE?
Here are key scenarios where a turnover certificate is commonly requested:
- For Rental Contracts (Especially in Malls)
Many mall managements require businesses to submit a turnover certificate as part of the rental agreement. It helps them understand how much the tenant earns and if they meet minimum revenue conditions tied to the lease.
- Participation in Tenders
Government bodies, private companies, or free zones might ask for this certificate when your business applies for a tender. It’s a way to ensure only financially stable businesses take part.
- Applications for Loan and Credit
When your business goes for a business loan or credit facility application there is a huge probability that banks and financial institutions can request this certificate. It is proof of income and assists in determining repayment capacity.
- Winning Over Investors
Investors like to see financial performance before investing in a venture. A turnover certificate provides them with assurance about the revenue potential of the business.
- Compliance and Tax Filings
Authorities can request evidence of turnover for audit or tax compliance. The certificate maintains correct filings and avoids future disputes.
How Is It Issued?
Wondering what the procedure is to obtain a turnover certificate? It is not overly complex; however, it does demand precision. Let’s explore the steps that are involved here:
Step 1: Gather Documents
The very first move is to get records of sales, POS statements, invoices, bank statements, and any documents that relate to them. Your approved auditor in Dubai will assist you in determining the necessary documents.
Step 2: Review Documents
Your certified auditor verifies the documents provided.
Step 3: Cross-Verify with VAT Returns
In order to have consistency, the collected document is cross-checked with VAT returns.
Step 4: Draft Certificate
A draft of the certificate is created and submitted to the client for approval.
Step 5: Final Certification
After a draft is approved, the final stamped and signed certificate is issued.
Who Can Issue It?
Only licensed and certified auditors in the UAE are authorized to issue turnover certificates. These professionals ensure the data is accurate, well-documented, and compliant with local regulations. Their signature and stamp provide legal standing and professional assurance.
When Should You Get One?
Get a turnover certificate:
- Before entering a rental agreement
- When applying for business loans
- In preparing for a government or private tender
- For investment negotiations
- For year-end tax returns or audits
How does it help your Business?
A turnover certificate may seem like just another document, but it supports:
- Transparency– Shows stakeholders that your revenue claims are backed by facts
- Trust– Builds credibility with banks, landlords, and investors
- Preparedness– Keeps your business ready for opportunities that need financial proof
- Planning– Helps business owners understand their sales cycle better
How Can JCA Help?
At Jitendra Chartered Accountants (JCA), we understand how crucial timely documentation is for growing businesses in the UAE. Our experienced auditors provide end-to-end support in preparing, verifying, and issuing Sales/Turnover Certificates to help you:
- Meet compliance requirements
- Secure funding
- Win tenders
- Build trust with key stakeholders
Let us handle the paperwork, so you can focus on growing your business.
Contact JCA today to streamline your certification process with confidence