Types and format of tax invoices in the UAE

There are two types of Tax Invoices, full tax invoice and simple tax invoice. Simple tax invoice has less requirements in terms of the format and is used in the following situations:

• Where the buyer is not registered for VAT in the UAE

• Where the buyer is registered for VAT in the UAE, but the total value of the invoice does not exceed AED 10,000.

In all situations other than the above a full tax invoice must be issued.

It worth mentioning that issuing a full tax invoice instead of simple tax invoice is optional. The seller may choose to issue a full tax invoice to all customers including non-VAT registrants.

The format of the Tax invoice

Full Tax Invoice

A valid full tax invoice must contain all the following

1. The words “Tax Invoice” clearly displayed on the invoice

2. Seller’s name, TRN, and address (mailing address at minimum)

3. Buyer’s name, address (mailing address at minimum), and TRN (if VAT registered)

4. A sequential or a unique tax invoice number

5. The date of issuing the tax invoice

6. The date of supply (if different from the tax invoice date)

7. A description of the goods or services supplied

8. For each good or service, unit price, quantity or volume supplied, VAT rate, VAT amount, and the net amount exclusive of VAT.

9. The amount of any discount offered

10. The gross amount payable expressed in AED

11. The tax amount payable expressed in AED together with the rate of exchange applied for invoices in foreign currencies

12. Where the invoice relates to a supply under which the recipient is required to account for VAT, a statement that the recipient is required to account for VAT, and a reference to the relevant provision of the Law. Example: a B2B gold jewellery transaction is subject to reverse charge mechanism where the buyer will account for the VAT (input & output). The Seller shall put the statement in the tax invoice.

Simple Tax Invoice

A valid simple tax invoice must contain all the following:

1. The words “Tax Invoice” clearly displayed on the invoice

2. Seller’s name, TRN, and address (P.O. Box at minimum)

3. The date of issuing the tax invoice

4. A description of the goods or services supplied

5. The total consideration (invoice total)

6. The VAT amount charged

Tax Invoice in foreign currency

Tax invoices issued in a foreign currency must show the following:

• The tax amount payable converted to AED

• The exchange rate used for the conversion (as per UAE’s central bank exchange rate at the date of supply)

Rounding

Full tax invoices should be rounded on a line item basis to the nearest Fils (2 decimals)

Simple tax invoices should be rounded on a total basis to the nearest Fils (2 decimals)