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What a readiness review actually finds

This is a complete report for a company that does not exist. The data is invented. The analysis is not: every figure below was produced by the same code we run on real client data, and it changes when that code changes.

1The company

BusinessSteel fabrication, MEP supply and site installation
Annual revenueAED 88 million
Accounting systema mid-market ERP with no dedicated field for service codes
Item master214 records
Counterparties163 records
Sales invoicesabout 340 per month
Why this profile

Revenue above AED 50,000,000 puts the company in the first wave: an accredited service provider must be appointed by 2026-10-30, which is 91 days from today, and live invoicing starts 2027-01-01. Goods and services in the same ledger means both classification schemes apply.

2Item master

214
records reviewed
93
got a code suggestion
121
need a human decision
40
have no item type set

Where a line is typed as goods, an HS code is required; where it is typed as services, a service accounting code is; where it is typed as both, both are. The requirement follows from the type, not from the invoice — which is why lines with no type recorded are neither passing nor failing today. The suggestions above come from a starter catalogue built from published code lists and from keyword rules. None of them is applied automatically, because none has been confirmed by a human yet.

Where the suggestion came fromItemsApplied without review
Confirmed catalogue, exact match0yes
Starter catalogue, not yet signed off13no
Keyword rule80no
Nothing matched121no

On a first engagement the confirmed catalogue is empty, so that row reads zero. It fills as your own decisions are signed off, and from then on the same decision is applied consistently across your own records. Work for another client starts from published code lists and that client's own confirmed facts: your descriptions, classifications and approved tax positions stay inside your engagement and are not carried anywhere else.

The finding that surprises people

40 records have no item type set. Today those invoices pass validation, because the rules that demand a classification code only trigger once the item is marked as goods or services. Nothing in the specification requires the type itself. So the ledger looks compliant right up to the day someone fills that field in, and then it is not.

Separately, 6 records have no description at all. These are usually legacy entries nobody uses and nobody deleted. They still fail validation if an invoice ever touches them.

3Counterparties

163
records reviewed
81
usable as they stand
35
wrong format, fixable in place
32
have to be asked
StateRecordsWhat it takes to fix
Valid UAE tax number81nothing
Wrong format35editing the record; the number is usually right underneath
No number recorded32writing to the counterparty and waiting for a reply
Non-UAE, no number needed15nothing
Same number on two records (already counted above)10merging the records before go-live

The duplicate row is a flag on records already counted in the rows above it, not a fifth group. Adding it to the others would produce more counterparties than the ledger holds.

What wrong format actually looks like

Recorded valueProblem
l986…6803spaces or punctuation inside the number
1589…2 03spaces or punctuation inside the number
1643…382014 digits instead of 15
TRN …5103spaces or punctuation inside the number
TRN …9003spaces or punctuation inside the number

Values are masked here. In a real report they are shown in full, because the person fixing them needs to see them.

The part nobody budgets for

32 counterparties have no tax number on file. That number cannot be derived, looked up or guessed: it has to come from the counterparty. In practice that is four to six weeks of correspondence, several rounds of chasing, and it cannot be compressed by working harder in the last week. It is the single most common reason a go-live date slips.

4What it costs to do nothing

Penalties sit in Cabinet Decision 106 of 2025. Three of them recur monthly and are capped at AED 5,000 each, which puts the annual ceiling at AED 180,000. A further AED 1,000 per day applies to late notifications and is not capped.

SituationPer month
No system in place, no invoices transmittedAED 5,000
System in place, 340 invoices still on paperAED 5,000
System in place, 340 invoices and 25 credit notesAED 7,500
Worth knowing

Businesses that join the voluntary phase are excluded from the penalties under Cabinet Decision No. 106 of 2025 for as long as they participate voluntarily. That exclusion covers those penalties and nothing else: VAT, contractual, integration, remediation and operating obligations continue, and so do their costs. What early participation buys is a rehearsal in which a rejection does not carry an administrative penalty — not a period in which mistakes are free.

5What we would do, in what order

Order matters more than effort here. One correction in the wrong place fixes one invoice; the same correction in the right place fixes every invoice that record appears on.

StepWhy it comes here
Establish who is registered for VATbefore a single letter is written. An unregistered counterparty has no tax number and never will; writing to it wastes the client's name on a request nobody can answer. Of the 32 records with no number, this step decides how many are letters and how many are a mapping decision
Start the counterparty campaignnext, because it is the only step measured in weeks rather than hours. Letters go out in the client's name, to the subset the previous step identified
Fix the company's own recordone edit, and it clears an error present on every single invoice
Set the transaction type flags8 yes-or-no questions that decide which rules apply at all. Getting these wrong invalidates work done later
Classify the item master121 decisions needing a human, the rest proposed with a source for each
Repair the counterparty records that are merely malformed35 edits that need nobody's cooperation
Test against the real specificationgenerate documents and run them through the published rules before the provider does

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