For enterprises looking to bid on contracts with UAE government or semi-government organizations, the National In-Country Value (ICV) Certificate UAE is an absolute need. Businesses must follow several important rules and regulations as part of the certification procedure if they want to get and keep their ICV Certificate UAE. Everything you need to know about the National ICV Certification is summed up in this article, from the application procedure to the necessary financial statements.
How to Obtain the ICV Certificate UAE?
- Scope of Certification: An independent ICV Certificate UAE is necessary for every supplier’s legal company or license, irrespective of ownership. Nevertheless, a combined ICV Certificate UAE can be obtained by branches within the same Emirate that engage in the same operations and are owned by the same person.
- Financial Statement Alignment: Second, make sure the supplier’s most recent audited financial statements (prepared in accordance with International Financial Reporting Standards and audited by a licensed UAE auditor following the International Standards on Auditing) match the numbers you put into the ICV template.
- Validity of Financial Statements: Thirdly, reliability of financial statements: for ICV certification, audited financial statements must be more than two years old. To calculate ICV, new businesses can utilize unaudited financial statements up to 9 months old; accounts older than 9 months need to be audited.
- Validity and Recertification: Upon issuing of the Audited Financial Statements, the ICV Certificate UAE is valid for a period of fourteen months. The original 14-month validity remains in effect; however, suppliers can get recertification throughout this time by utilizing the same assertions.
ICV Certification Application Process
- ICV Template: The Supplier must complete the ICV Template by filling out the statistics and other data in the non-shaded spaces. The ICV Certificate UAE Template is an Excel file with separate tabs for each attribute. The Supplier is required to input the relevant data, which should coincide with the numbers in their Audited Financial Statements and related papers. Unless otherwise specified, all expenses and revenues accrued during the fiscal year are required to be recorded.
- Certifying Body: Any change to a Supplier’s designated Certifying Body for a given year requires a good reason. This regulation is applicable to the UAE ICV Certificate issued for that particular year.
- Currency Conversions: All numbers will be presented in AED unless otherwise noted. One US dollar is equivalent to 3.6725 AED when converting currencies, and any further conversions must be made using the rate stated on the purchase order for the relevant products and services.
Additional Requirements for ICV Certification
- Cost of Sale Details: When calculating the cost of sale, yearly purchases can be used as a substitute if the supplier is unable to give details broken down by vendor and invoice. The disparity between the opening and closing inventory levels should be reclassified as “others” in such cases so that it is consistent with the cost of sale statistics seen in the Audited Financial Statements and records. In the next step, divide the “others” by the sum of all charges incurred within and outside the UAE.
- Industrial License: Suppliers holding an Industrial License are required to report their water, electricity, and gas use on an annual basis in the following units: kWh, m³. For reasons of compliance, this data is necessary.
- Documentation: Vendors making the ICV Template have to check that the assumptions and methods of computation are in conformity with the standards. The Supplier is responsible for ensuring that all necessary financial documents are kept in a safe and easily accessible location.
Application and Certification Process for ICV Certification
Please see below the processes that suppliers must take to apply for an ICV Certificate UAE:
- Registration on ICV Platform: First, suppliers can sign up for the ICV Platform by going to the website and entering their UAE Pass. To create a profile for the firm, click the “Register Company” button if none already exists.
- Applying for ICV Certificate UAE: Once a supplier has registered on the ICV Platform, they can request an ICV Certificate UAE by logging in with UAE Pass. Then, they must adhere to the bidding process’s specified steps, which include choosing authorized Certifying Bodies, filling out the questionnaire, and acquiring and entering the necessary information for the ICV Certificate UAE.
- Modifying Trial Balance and Account Codes: It is highly recommended that suppliers make the necessary adjustments to their current trial balance and account codes to track the expenditures associated with the ICV certification procedure in a different manner. In the years to come, this step will guarantee a streamlined certification procedure.
- NAFIS Program Registration for Suppliers: Suppliers are required to register with the NAFIS Program as “Partners” via the official website, https://nafis.gov.ae/ . Prior to acquiring the ICV Certificate, all private firms are required to register on the NAFIS portal. The Emirati Talent Competitiveness Initiative and the economy as a whole benefit from this stipulation.
- ICV Calculations Based on Company Type: When calculating ICV, the following factors will be evaluated based on the specific type of company:
| Type of Company | Consideration for ICV |
| LLC in mainland UAE (Limited Liability Company) | Within UAE |
| Free Zone companies | Goods Manufacturer – Within UAE Service Providers- All attributes except Investment will be considered within UAE |
| Offshore Company | Outside UAE |
| Representative Office | Based on the parent company |
| Branch Office in main land UAE | Within UAE |
FAQs
- Where can I obtain the ICV Template?
The Supplier can obtain the ICV Template from https://moiat.gov.ae/en/icv/information-for-suppliers.
- How can I register on the ICV Platform?
Suppliers can register on the ICV Platform by visiting https://icv.moiat.gov.ae/ and logging in using UAE Pass.
- What factors are considered for ICV calculations?
For the purpose of ICV calculations, the following factors shall be taken into consideration based on the type of company:
- Goods Manufacturer
- Service Provider
In conclusion, company participation in bids with UAE government or semi-government bodies is based upon ICV Certificate UAE, which is an essential prerequisite. To ensure a seamless and profitable certification procedure, it is crucial to follow the general directions and standards.
Read More: ICV Score in UAE Calculation and Ways to Improve it
