REQUIREMENTS OF TAX INVOICE:

  • Where a taxable supply is made by any VAT-registered business, a tax invoice must be issued and delivered to the recipient.
  • Where simplified tax invoices are issued, there is no requirement to show the net value (i.e. the amount excluding the tax) for line items;
  • Where full tax invoices are issued, line items have to show the tax value and net value, it is not mandatory to show the gross value;
  • Tax invoices issued in a foreign currency must show the tax amount converted to AED and the exchange rate used for the conversion; and
  • Rounding on tax invoices should be performed on a line item basis to the nearest Fils.

Example on Rounding on invoices:

  • 357 AED would become 2.36
  • 862 AED would become 9.86

 

CONTENTS OF SIMPLIFIED TAX INVOICE:

 

  • The words “Tax Invoice” clearly displayed on the invoice;
  • The name, address, and Tax Registration Number of the supplier;
  • The date of issuing the tax invoice;
  • A description of the goods or services supplied; and
  • The total consideration and the tax amount charged.

Note:

  • Line items to be shown at the gross value

 

 

WHEN SIMPLIFIED TAX INVOICE CAN BE ISSUED?

  • Where the recipient of the goods or services is not registered for VAT; or
  • Where the recipient of the goods or services is registered for VAT, and the consideration for the supply is AED 10,000 or less.

Note:

  • Tax invoice must be issued and delivered to the recipient.

 

CONTENTS OF FULL TAX INVOICE FOR EACH LINE ITEM:

  • The unit price;
  • The quantity or volume supplied;
  • The rate of tax; and
  • The amount payable expressed in AED.

Note:

  • Each line item shall have the net amount payable (excluding the tax) as well as the tax due.

 

REQUIREMENTS FOR TAX INVOICES ISSUED IN FOREIGN CURRENCIES:

  • The tax amount payable expressed in AED
  • The exchange rate applied (as per the exchange rates published by the UAE Central Bank on the date of supply).