Tax Invoice Format

Value Added Tax (VAT) got implemented on 1st January 2018 by the UAE Government for businesses operating in UAE. So all VAT registered taxable persons/businesses must issue a Tax Invoice when taxable goods or services are supplied in the UAE on/or after 1^st January 2018.

Federal Tax Authority has established certain rules regarding the type of invoice that may be issued when taxable goods or services are supplied and also regarding the timing of issuing such invoices.

Types of VAT invoices-

Federal Tax Authority (FTA) has issued guidelines for two types of Tax Invoices that can be issued for VAT purposes. They are-

1. Simplified Tax Invoice-Simple VAT Invoices can be issued for supply less than AED 10,000. Simple VAT Invoices don’t require a VAT number and are usually for businesses in the retail industry.
2. Detailed Tax Invoice- When a business supplies goods or services to another business for more than AED 10,000 then it needs to have a detailed tax invoice.

Requirements of Tax Invoice-

Once you know which invoice format will be issued for the business, you must include the minimum requirements for the FTA when filing your monthly VAT Invoice.

Simplified Tax Invoice requirements-

1. “Tax invoice” in a prominent place
2. Name, address, and TRN of supplier
3. Date of issue of invoice
4. Description of goods or services
5. Total amount payable
6. Total VAT chargeable

Detailed Tax Invoice requirements-

1. “Tax invoice” in a prominent place
2. Sequential number
3. Date of issue of invoice
4. Time of supply (if different)
5. Name, address, and TRN of supplier
6. Name, address, and TRN of recipient
7. Description of goods or services
8. Unit price, quantity supplied, rate of tax, and the amount payable in AED
9. Value of any discount allowed
10. Gross value payable in AED
11. Tax amount payable in AED
12. The exchange rate applied (if applicable)
13. Statement relating to reverse charge, if applicable

When to issue an invoice?

As per law, a business shall be issued a tax invoice within 14 days of the date of supply of goods or services.

Points to consider while issuing tax invoice-

• A special provision applies concerning the supply of goods or services that includes periodic payments or consecutive invoices.
• Tax invoice issued in foreign currencies will have the below content-

1. The tax amount payable will be expressed in AED.
2. The exchange rate applied.

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https://www.horizonbizco.com/what-information-must-be-included-in-your-tax-invoice-in-uae/

All About VAT Payments in UAE