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.
- 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.
- 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.
- 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).