Affidavit Of Gross Sales Template for the United Arab Emirates

An Affidavit of Gross Sales is a legally binding sworn statement that declares your business revenue for a specific period under UAE law. This document serves as official verification of your sales figures when contractual obligations or regulatory requirements demand accurate revenue reporting. You'll need this affidavit to fulfill various commercial obligations and maintain compliance with UAE business regulations.

When do you need this document?

You'll require an Affidavit of Gross Sales when your commercial lease includes percentage rent clauses based on your revenue performance. Many shopping centers and commercial properties in the UAE structure rent payments as a combination of base rent plus a percentage of gross sales above certain thresholds. Franchise agreements also commonly require these affidavits for royalty calculations, ensuring franchisors receive accurate percentage-based fees. Additionally, you may need this document for regulatory compliance, particularly when dealing with VAT reporting requirements under Federal Decree-Law No. 8 of 2017, or when financial institutions require verified revenue statements for lending decisions.

Key legal considerations

Your affidavit must include precise identification of the declarant, including full legal name, position, and authority to make statements on behalf of the business entity. The document should clearly specify the reporting period and provide detailed breakdown of gross sales figures, including all revenue streams relevant to the agreement. Under UAE law, making false statements in a sworn affidavit constitutes perjury and can result in serious legal consequences. You must ensure all sales figures are accurate and verifiable through your business records. The affidavit should explicitly state its intended purpose and the party who will rely on the information. Include any necessary disclaimers about extraordinary circumstances that may have affected sales during the reporting period.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 5 of 1985 on Civil Transactions, your Affidavit of Gross Sales must be properly notarized by an authorized notary public to be legally valid. The document must comply with formal requirements for sworn statements, including appropriate oath language and declarant identification. Depending on the intended use, you may need attestation by the UAE Ministry of Justice, particularly for documents used in court proceedings or international transactions. UAE Federal Law No. 18 of 1993 on Commercial Transactions establishes record-keeping requirements that support the sales figures declared in your affidavit. For companies operating under UAE Federal Law No. 2 of 2015 on Commercial Companies, board resolutions may be required to authorize the declarant to make sworn statements on behalf of the entity. VAT-registered businesses must ensure compliance with Federal Decree-Law No. 8 of 2017 requirements when reporting sales figures.