Generating Invoices under UAE VAT Law

How to Generate Invoices under VAT Law in Abu Dhabi and Dubai?

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A tax invoice is the most important document to be issued by a person registered under UAE VAT Law. This is the document which will help the FTA to determine the amount of tax payable or refundable. The basic requirement for claiming any input tax or refund is the TAX INVOICE.So , it is one of the mandatory requirement for claim of Input tax paid.

Under what circumstance, a tax invoice is issued:

  1. The recipient of the goods or service must be registered under UAE VAT Law.
  2. The consideration of supplies should be more than AED 10,000.

However, there is a list of requirements to be met while issuing invoices. If such requirements are not met, then it may lead to penal provisions. Hence, every entity issuing tax invoices must ensure its accuracy and integrity.

As per FTA guidelines, Tax invoice is of 2 types:

  1. Simple VAT invoice
  2. Detailed VAT invoice

Simple VAT invoice is issued when the consideration of supplies is less than the specified amount, and detailed invoice is issued when the consideration exceeds the specified amount. Simple invoice is issued when the recipient is not registered and detailed invoice is issues when the recipient is a registered one.

Content of Simple VAT Invoice:

  1. The word “TAX INVOICE” at a prominent place.
  2. Details of supplier.(Name, address, TRN)
  3. Date of issuance of invoice.
  4. Description of goods supplied.
  5. Total amount payable and total vat chargeable.

Content of detailed VAT invoice:

In addition to the content of a simple VAT invoice, detailed invoice must also include the following:

  1. Details of recipient. (name, address, TRN)
  2. Invoice number.
  3. Date of supply.
  4. Price per unit.
  5. Rate of tax charged.
  6. Discount, if any
  7. Gross value of invoice and VAT payable.
  8. Statements relating to Reverse charge, if any.

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