VAT INVOICE UAE


VAT Public Clarification VATP006 

This publication is important as the tax invoice process is important to all businesses making taxable supplies, and tax invoices received must be compliant with the UAE's VAT legislation.

The Public Clarification includes the following key points:

  • Whenever a taxable supply is made, a tax invoice must be issued and delivered to the recipient (if the conditions for a simplified tax invoice are met, then a simplified tax invoice can be issued and delivered instead).
  • It is not acceptable to offer only an option of providing an invoice (and thus not provide one if the customer does not request one). A tax invoice must be provided in all circumstances where a taxable supply is made.
  • A simplified tax invoice does not have to show the net value (the value before tax) for each line item.
  • A full tax invoice must show the tax value and net value for each line item; however the gross value (the total including tax) does not have to be shown for each line item.
  • If a tax invoice is issued in a foreign currency, it must show the tax amount converted to AED and the approved exchange rate used for the conversion.
  • Rounding on tax invoices must be to the nearest Fils on a line item basis.


FTA Tax Invoice Format UAE

Businesses must follow the FTA Tax Invoice Format UAE. A VAT invoice must have a Tax Registration Number (TRN). There are two types of tax invoices:

Simplified tax invoice

Full tax invoice

Simplified Tax Invoice

A Simplified Tax Invoice is to be issued by a registrant for taxable supplies of goods or services in either of the following 2 cases:

  • The recipient is not registered under VAT or
  • The recipient is registered under VAT and consideration for the supply does not exceed AED 10,000

In a simplified tax invoice, line items will be shown at the gross value.


The required contents of a simplified tax invoice will be as follows:

The words "Tax Invoice" are clearly displayed on the invoice.

The name, address, and Tax Registration Number (TRN) of the supplier.

The date of issuing the tax invoice.

A description of the goods or services supplied.

The total consideration and the tax amount charged.

At the bottom of the simplified tax invoice, the total consideration is shown (i.e. the total gross value), with a separate line showing the tax included within that value.


Full Tax Invoice

In full tax invoice, line items will be shown at the net value.

The required contents of a full tax invoice will be as follows:

Name, address, and TRN of the recipient.

A unique invoice number must be sequential

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.

The payable Net value of the Invoice in AED.

Payable Tax Amount in AED.

A further requirement of a full tax invoice is to show the total gross amount payable expressed in AED. As a full tax invoice includes several line items, each shall have the net amount payable (excluding the tax) as well as the tax due. The FTA accepts that a full tax invoice does not need to include gross amounts (i.e. inclusive of tax) for each line item, as the total gross amount payable for the invoice shall be stated.

Rounding on Tax Invoices

Where a tax invoice is required to be issued and the tax chargeable on the supply is calculated as a fraction of a Fils, the value may be rounded to the nearest Fils on a mathematical basis.

Given that the tax amount should be calculated on a line by line basis on a full tax invoice as mentioned above, in practice this means that such rounding, if performed, should also be undertaken on a line by line basis.

By rounding the value on a mathematical basis, it is meant that the tax value stated on the tax invoice should be rounded to the nearest whole Fils (i.e. to 2 decimal places) by applying mathematical logic.