UAE VAT Progress Billing Invoice is an excel template with predefined formulas for progress billing under the new VAT System.
Progress Billing Invoice is a type of invoice used to obtain part payment of the total contract amount from your clients as agreed in the contract.
It is different from standard invoicing. In standard invoicing, a client pays the amount in full against the goods or services obtained.
Whereas under progress billing, as the duration of the contract is long and the contract amount is also big, payments are released at different stages as agreed in the contract.
Construction contractors, architects, landscapers, interior designers, IT system providers, consultants, etc use progress billing.
VAT in UAE and Saudi has come into effect from 1st Jan 2018. Thus, businesses dealing in such kind of long-term contracts has to issue VAT compliant progress billing invoice to their clients.
We have created a ready to use UAE VAT Progress Billing Invoice template in excel with predefined formulas.
Just enter your company credentials in the header section and start using this template.
You can also use this template for Saudi Arabia. Change the country to Saudi Arabia instead of UAE and it will automatically change the currency at all places on the invoice.
Let us discuss the contents of the template in detail.
Contents of UAE VAT Progress Billing Invoice Template
Similar to other invoice templates this s=template also consists of 2 sheets:
- UAE VAT Progress Billing Invoice Template
- Client Database
The customer database consists of name, address, contact details and VAT numbers of your customers. you just need to input the names and details once.
This sheet is linked to the invoice template and you can fetch all customer information in customer details section with the help fo dropdown list. VLOOKUP is used here.
The date section is configured using TODAY Function. It will display the system date.
The UAE VAT Progress billing Invoice consists of 6 sections:
- Your Company Details / Header Section
- Client Details
- Contract Details
- Progress Billing Details
- Milestone or Work Completed Details
- Company Seal and Signature
1. Your Company Details / Header Section
This section consists of supplier’s/your company name, logo, address, VAT number etc. It is mandatory to mention your VAT number on the invoice.
2. Client Details
Client details consist of client’s company name, address, contact number and VAT number. The user just needs to select the name of the customer name from the dropdown list created using data validation.
Once you select the name of the customer, the system will automatically fetch the data you have entered in the client sheet.
3. Contract Details
Details of Contract consist of the following:
- Contract number
- Duration of Contract
- Value of Contract
- Advance Amount
- Payments Till Date
- Balance Amount
Here, the balance Amount is calculated using the below formula:
Balance Amount = Contract value – Advance Amount – Payments Till date
4. Progress Billing Details
Progress Billing details consist of the following:
- Invoice Number
- Taxable Value
- Additional Costs if any
- Adjustment Amounts if any
- 5 % VAT Calculations
- Total Invoice Amount
- Amount In Words
VAT Amount is calculated using the below formula:
VAT Amount = (Taxable Amount + Additional Costs + Adjustments) X 5% VAT
Enter a negative amount of adjustments, if you want to decrease excess received amounts.
5. Milestone or Work Completed Details
Here you need to enter the predefined milestone of your original contract that has been completed or the amount of work completed.
In case, there are any other details to be clarified, you can enter them in the Additional comments section.
6. Company Seal and Signature
Lastly, there is the thanking message along with the space for company seal and authorized signatory.
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