According to the guidelines issued by Federal Tax Authority (FTA) in relation to the contents of UAE VAT Tax Invoice, there are two types of Tax Invoice:
- Simple VAT Invoice.
- Detailed VAT Invoice.
Simple VAT Invoice will be for supply less than the specified amount.
It is issued in the case when the customers are retail consumers and don’t need to provide a VAT number.
This type of invoice is for supermarket and other retail industry.
Detailed VAT Invoice will be for supply more than the specified amount.
It is issued in the case when a registered business supplies to another registered user.
This type of invoice is for wholesalers and traders dealing in bigger quantities.
To download the Federal Decree-Law No. (8) of 2017 on Value Added Tax click on the link below:
Federal Decree-Law No. (8) of 2017 on Value Added Tax
Contents of UAE VAT Tax Invoice
1. Simple VAT Invoice
A simple VAT Invoice must the word “Tax Invoice” at a prominent place.
It must consist the details of the supplier. Name, Address and Tax Registration Number (VAT Number).
In addition to the above, it must contain, Date of issue of the tax invoice.
The complete description of goods supplied must be included.
Apart from that, the most important thing a simple VAT invoice must have is the Total Amount Payable and Total VAT Chargeable.
2. Detailed VAT Invoice
In addition to the above details that are in simple tax invoice, a detailed VAT Invoice will consist of the following details:
- Name, address, and TRN of the recipient.
- A unique invoice number
- Date of Supply, if it is different from the date of issue.
- Price per unit, the supplied quantity/volume, rate of tax and the payable amount in AED.
- Discount, if applicable.
- Payable Gross value of Invoice in AED.
- Payable Tax Amount in AED.
- Statement relating to Reverse Charge, if applicable.
See image below for reference:
Free UAE VAT Billing/Invoicing Software
We have created an easy to use UAE VAT Billing Software under the banner of InvoiceCRM. Click Here to know more about InvoiceCRM.
This software consists of all the above-mentioned contents of UAE VAT Tax Invoice.
You can create a detailed VAT invoice in this software in just 3 easy steps.
- Adding Your Customer
- Adding your Product
- Creating Invoice
That’s all you need to do and your UAE VAT invoice is ready.
Try the Demo Yourself
With InvoiceCRM, you can create your invoice anytime and anywhere on your PC, laptop or mobile phones. This software is totally free till Jan 2019.
We thank our readers for liking, sharing and following us on different social media platforms.
If you have any queries please share in the comment section below. I will be more than happy to assist you.
This article is so useful because after the VAt mostly news we don’t know but TAX invoice is important after the VAT registration.
Thanks for the compliment. Happy to know it helps our readers. Please share the word about our website with your friends and colleagues on FB, Twitter and other social media. Thanks
can you please let me know about the article for invoice submission time.
Article 62,63,64 of Cabinet Decision No 52.
Is it mandatory to show the rate of VAT, 5%, in the detailed invoice? Or is it alright if only the amount in AED is shown, that is equivalent to 5%.
In other words, should the 5% rate of VAT be mentioned in some part of the invoice or not necessary.
According to the guidelines, the % should be shown on the invoice.
Hi Sir,
If i receive an Invoice from Supplier where only the Name and TRN of Our Company is mentioned but there is no Address of our Company.
Is these type of Invoices are considered to be correct & we able to cliam VAT on such type of Invoices
Yes, it is acceptable and vat input can be claimed on such invoice.
1.what the specified amount is ?10,000aed?
2.what the date of supply mean? the date delivered the goods?
1. Didn’t understand what you mean to ask.
2. Date on which the transaction and movement of goods take place.
Our TRN is still in process. We recently purchased a software that cost less than AED 10,000. The supplier refused to provide a tax invoice since we don’t have a TRN yet. They quoted Cabinet Resolution No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE, that they must provide CORRECT TAX Invoice, and that is the recipient (customer) must have a TRN. Is that right?
Depends on your TRN status. When did you apply? what is the delay for? Please take this matter with FTA.
According to my knowledge, you are not violating the law as the registration is pending from FTA. In this case, if you have failed to reply or respond to any registration queries by FTA then only you break any laws.
is it customer liability to verify the supplier name in the invoice and supplier name in the Tax Registration certificate is matching for the heavy value purchase more than AED 10,000.
If it mismatch, what is the solution from customer perspective.
1. It is not possible that supplier name in tax invoice and Tax certificate be different. as it is mandatory to conduct business with the same name issued in tax certificate.
It is the duty of both buyer and seller to check this. upon your request, if he doesn’t do so can be reported to FTA.
The solution here is simply that the supplier must change the invoice and give another invoice with correct name as on Tax Registration certificate to the customer.
We are using Invoice with previous template and we are using the stamp to mention our TRN on invoice and also using stamp to mention the word TAX INVOICE. Is we are on right track or not.
According to the ruling, TRN and word Tax Invoice Is mandatory. FTA will accept this or not can’t be said. Well from a general point of view if you have a stationary printed prior to tax implementation and still have some left could be convinceable/acceptable. It is better to use new stationary. Please note the suggestion provided cannot be considered as a legal advice.
Hi sir,
1. If i receive an Invoice from supplier without mentioning Tax Invoice can i accept it,But they have mentioned there TRN number and Vat Amount in that invoice.
2. If i receive an Tax Invoice Without Mentioning our Company Name & TRN number can i accept these kind of invoices
In Two cases can i able to claim VAT
According to the law, TRN and Company name are mandatory.
1. Here if the supplier’s invoice consists of his TRN number and other mandatory details it might be claimable in Input VAT. This is my understanding. Or else you can ask the supplier to issue the invoice with the word Tax Invoice.
2. No, you cannot accept such invoices and they will not be claimable for Input VAT.
Hi,
I understand all invoices must have the word Tax Invoice mentioned.
However in our case, our invoice also doubles as a Delivery Note.
So our Invoice says “TAX INVOICE cum DELIVERY NOTE”.
Is this in compliance with the Law?
Thanks.
As the invoice has the word Tax Invoice it will suffice. It complies with the law.
Hi sir,
1. If i receive an Invoice from a supplier without mentioning Tax Invoice but they mentioned there TRN number and VAT details, can i accept it.
2. Can i accept an Tax Invoice with another company billing address instead of our company billing address
In the two cases can i able to claim VAT on it.
Already replied to your previous comment dear.
My foreign supplier provided invoice with uae VAT charges for workshop conducted in uae. He has provided uae tax registration certificate also
Is that right. Can we pay input vat to supplier or reverse VAT should be considered .
Please clarify urgently
Dear Sir
Hope you are doing well.
Currently our invoice format is like
Sub Amount 100
Discount (5)
VAT 4.75
Total Amount 99.75
Is that correct?
Please advice
Hi Hussain, I am unable to understand what is your query. You want to ask about the discount, you want to ask about Totals or you want to ask about invoice format. Please elaborate your query in detail.
Dear Sir,
Hope you are doing well.
This is our invoice format is like
Sub Total 100
Discount (5)
VAT 4.75
Total 99.75
So, kindly advice is this correct?
Regards
Hussain
According to best of my knowledge, The way you said is right and must be acceptable by FTA in the case of single commodity supply. When it comes to multiple commodities whose tax rates differ then The following template would the exact match:
https://exceldatapro.com/uae-vat-multiple-tax-invoice/
According to the ruling for the VAT invoice, each line must show line total.
Need to check as we have monthly VAT returns one of our customer has given a 28.06.2018 back dated invoice we received the material in month of july ie is on 18.07.2018 and our stores issued the good in receipt on 28th july the papers got delay from their end and this time we had filled our VAT for june month on 20th july as our financial controller was going on leave so she wanted to finish filling so i requested the customer to change the date of invoice to july they are not willing to change how can we claim the vat since it is huge amount .Can we enter the date as July in our records.
If they change it is good and you can report normally on your next return. But if they do not change, while filing your next return put the same invoice in adjustments. Then you can claim the VAT.
hi sir,
1.I received tax invoice with trn number of the supplier. but in the tax invoice our trn was not mentioned only the company name.can I claim the input vat?
2. is it necessary to mentioned the customer name in the tax invoice?
hi sir,
1.I received tax invoice with trn number of the supplier. but in the tax invoice our trn was not mentioned only the company name.can I claim the input vat?
2. is it necessary to mentioned the customer name in the tax invoice?
If the invoice amount is below AED 10,000/- then it is permissible. But if above AED 10,000/- then you have to ask your supplier to send you new invoice with trn.
Dear Sir,
I received an invoice below 10000AED from supplier.
Both Our TRN and company name is not mentioned.
Can we claim?
What is the commodity? Are the goods purchased for office use or for sale?
Dear Sir,
Thanks for the reply.
In same case,
Some goods purchased are tools & equipments.
Some are raw materials for manufacture.
Some are for official purpose. Expenses like Stationery & pantry items
Input can be claimed.
Sir,
Our Tax Invoice is in Euro currency. Do we need to convert the Total Amount of our Invoice in Euro to Dirhams eventhough it is zero rated VAT since we are in a designated Freezone ? Or it is only required if the Tax Invoice is vatable by 5%
If you are in the designated zone and deal in imports and sales to the mainland then you need to convert. But for reporting in accounts you need to convert it to AED in in books of accounting.
Thank you sir, what if it is for foreign costumer and it is for service and zero rated tax, do we need to convert the amount in Dirhams even no VAT applicable?
If it is for a foreign customer then you can put only euros, but again you will have to maintain another copy for accounting purpose. A better solution to it will be multi-currency invoice which has both euros and aed in one.
Hi Mr. Fahim,
I have two queries for VAT purpose.
1. Regarding Inter companies transactions, if company ABC (supplier) issued Tax Invoice to company XYZ (client) with two dates (Date of Supply is 30.06.2018 and Issue Date is 05.07.2018), so which date XYZ should use to book Invoice as per Tax Point?
2. Regarding passenger transport, can they charge VAT to client.?
1. Supply date
2. IF it is a govt. passenger transport they cannot. But if it is private they can charge.
Dear sir,
I issued invoice in USD and used the conversion rate to convert the amount from USD to AED. is this invoice still okay as long as I mentioned the tax base and tax amount in AED in the tax invoice? I charged the client for the work I did for them in USD.
According to the rules, conversion rate and both currencies must be displayed on the invoice.
Hi Mr. Fahim,
I have Tax Invoices with handwritten Customer name and VAT no., Will my claim on input vat be valid? or only electronically generated tax invoices are claimable?
Handwritten isn’t acceptable;e. Your claim will be declined.
Hi sir,
If we are issuing invoice to a sovereign entity company and not vatable. Do we still need to put 5% VAT on our services as the sovereign company are using our name and address on their company, which is base in Dubai?
please define what do you mean by sovereign company?
If a UAE based company is buying goods from a foreign company, who has a stock holding in the UAE with a valid VAT registration. Is it mandatory for the foreign company to stamp and sign the invoice that will be submitted to the UAE (buyer) company. Is an email invoice without stamp and sign considered invalid?
If a UAE based company is buying goods from a foreign company, who has a stock holding in the UAE with a valid VAT registration. Is it mandatory for the foreign company to stamp and sign the invoice that will be submitted to the UAE (buyer) company. Is an email invoice without stamp and sign considered invalid?..
The seller needs to mention this note on his website that “this is a system generated invoice copy and doesn’t require a signature.” But again if in any case the buyer is a defaulter and cannot pay the amount. the court will demand a signed copy or documents to support the claim.
I a got a loan from main company based in Canada then i got installment invoice in the M/o Feb-2019 & invoice date 05/12/2018 so when i booked this invoice?
2. If document serial number not in order so what is effect & penalty? Suppose doc 45 dated 2-219 & 48 date 01-01-19?
Report it in current VAT Return. No penalty is there. Keep the documents in-case any query is raised by the FTA.
Hi, I just want to ask. We have paid a supplier sometime in February 2019 and the tax invoice have only been generated today, March 11, 2019 meaning we cannot include in our vat filing for the period Dec2018-Feb2019. Can I know if it is possible to claim the vat in the next vat filing (Mar 2019-May 2019) knowing that the payment date was in February 2019? Does it have an effect? Thanks!
As per the accounting rules, the transaction is considered only when the invoice is made even though the goods supplied are prior or after the invoice. Thus, you cannot report this invoice in the first period of Dec-18 to Feb-19.
As you said that the payment was received in Feb-19 and the invoice was made later on then you need to issue the invoice at a backdate prior to receipt of payment and report that invoice in VAT return of Mar-19 to May-19 with voluntary disclosure.
Dear Sir, Just wanted to ask on the serial no of invoicing, we are making the invoice in 3 parts to ( for example 1511/1 & the second invoice will be 1511/2) our customer and the serial no not be in sequence, is there an mandatory criteria,
According to the law, it is mandatory to maintain the sequence. What I could understand from your query is you issued the invoice to your client in 3 parts.
1511/1
1511/2
And then you issued 1511/5.
This practice can get your accounting in trouble and you yourself won’t be able to identify any loop in the system.
Rather I would suggest that you issue invoice in general sequence to your client like; the first invoice is 1511 and then you issue other 5 invoices to other clients and then again 1517 to your same client.
Hello sir
joined as an accountant in an interior designing company recently,
while checking the past data, i have found
1. Serial number not in chronological order
2. they have accounted Delivery note and Tax invoices together (Excess claim of input)
3.some invoices are not accounted
i am rectifiying the data from begining onwards,
should i disclose voluntarily to FTA
Shamseer, I would suggest first check all the data. then see how much is the difference between excess input claimed and bills not accounted. Then with the exact difference of excess claimed and bills not accounted, you can make a voluntary disclosure.
DEAR SIR,
We have raised an invoice for 250000 AED, including tax to a company in april 2018. but we received only 75000 as advance, no payment there after,
almost one year over now, can we claim for tax reversal to FTA in next return.
no response from the counter party
sir , just need some clarification regarding tax invoice. thus company stamp and signature must be in the invoice? can we claim input tax without this things?
Thank you.
No, you cannot claim input except petrol bills as per the clarification from FTA.
Hi, we are in a designated zone in UAE and we sold goods to Mainland, which passed thru the Customs portal of the importer of the goods. I believe they would pay the import VAT on that and consequently claim the input VAT under RCM. On our part, I would like to verify if we have to report in the VAT 201 form such sale, and if yes, which box should we encode it to? Appreciate the clarification. Thank you.
Hi Lea, As mentioned by you, you sold goods in the designated zone to the seller, no vat was collected. He pays vat on imports and collects the goods. Later he claims RCM. You haven’t made any VAT sales, then there is no need for reporting it in VAT Return Form 201.
Hi, thanks for your reply. Just for further clarification. If we have sold goods to outside GCC (and we are in designated zone in UAE), should we report it in VAT 201 form? If yes, which box should it be encoded?
What is Form 201 under UAE VAT? The type of transaction you have mentioned is export from the designated area. thus won’t be reported. For further clarification, you can write to the FTA.
Dear Sir,
Good Day to you!
Just want some clarification regarding Simple Vat Invoice. We are buying some goods from retailers amounting to below 10,000.00. The company name where I a working and TRN number are not mentioned. Can we claim vat?
Appreciate your response.
Thanks and regards,
Rhina
Hi Rhina,
If the purchase is below AED 10,000 then you can claim input without TRN.
we got invoice from supplier on 20 aug,19 but got TRN ON 29 AUG.. Supplier told cant change date but can add trn no. It is above 10000. How can we claim.
You can claim if the invoice date is after the issue date of trn number. Before that not possible.
Hi,
We received an invoice from Etisalat for supply of mobile phones.
The invoice shows line by line VAT% (5%) but does not show line by line VAT value. However the total amount is shown below and total VAT payable.
Can I accept this as valid Tax invoice & claim input tax ?
Pls advice
It is acceptable. It is not necessary to have the line totals. Etisalat is a govt. run organization and thus they cannot make any such mistake which is not according to the rules. Each Etisalat branch follows the same structure of billing.
hello sir
our company is a construction and Electromechanical maintenance based company.
we had make our one client invoice at date 26-12-18 .but we didn’t vat filling yet because we are not sure they would be clear the payment or not
now payment is received 18/5/19. can we now vat filling this period may to july 2019.
most of clilent pay very deleye
so should we output vat filling according to invoice date or after receiving the amount
Non-payment is not a reason you shouldn’t be filing vat return. Payment comes or not you are supposed to file the invoice in VAT Return. Now you can settle the invoice in two ways:
1. Show this invoice with a voluntary declaration in the current VAT return. Best and legal option.
2. Issue a new invoice of nearby date and report in current vat return.
Thanks sir
one more question related to my previous question is that can we make tax proforma invoice first . and when payment received after can we make the final tax invoice. so we can’t return the tax according to proforma invoice ??? itn’t right way or not ??
If it is a proforma invoice for the purpose of proof of sale then it is OK. check the legal requirements with FTA for this.