FAQs

What is to be included in a Tax Return?

Tax Returns must include:

  • the value of standard-rated supplies made in the tax period and the output tax charged
  • the value of zero-rated supplies made in the tax period
  • the value of exempt supplies made in the tax period
  • the value of any reverse-charged supplies received in the tax period
  • the value of expenses incurred in the tax period (if the business in question is looking to recover input tax and the amount of recoverable tax)
  • the total amount of tax due and recoverable input tax for the tax period
    the payable tax (or repayable) for the tax period.

How long should we keep accounting records?

Accounting records are to be kept in a format that enables the Authority to verify that person’s tax obligations, for a period of five years after the end of the tax period.

The Taxable Person shall keep the following records: Records of all supplies and imports of goods and services; all Tax Invoices and Tax Credit Notes, or alternative documents related to receiving goods or services; all Tax Invoices and Tax Credit Notes, or alternative documents issued; records of goods and services that have been disposed of or used for matters not related to business, showing taxes paid for these goods and services.

All businesses must retain accounting and business records, the FTA noted, which include the balance sheet, profit and loss account, payroll accounts, fixed assets records and.

How to verify supplier TRN?

To verify the TRN number provided by your supplier is authentic you can check it on the Federal Tax Agency portal at the following URL:

https://eservices.tax.gov.ae/en-us/trn-verify

Enter the TRN number provided to you, and then enter the security code. You will get the result as the Company name in English and Arabic.

What is a Tax Invoice?

The Ministry of Finance in the Executive Regulation for the Federal Decree Law No. 8 of 2017 Value Added Tax has laid down the guidelines for the preparation of a TAX INVOICE and a SIMPLIFIED TAX INVOICE.

As per the law the definition of a Tax invoice is: A written or electronic document in which the occurrence of a Taxable Supply is recorded with details pertaining to it.

TAX INVOICE

  • A Tax Invoice shall contain all of the following particulars:
    1. The words “Tax Invoice” clearly displayed on the invoice.
    2. The name, address, and Tax Registration Number of the Registrant making the supply.
    3. The name, address, and Tax Registration Number of the Recipient where he is a Registrant
    4. A sequential Tax Invoice number or a unique number which enables identification of the Tax and the order of the Tax Invoice in any sequence of invoices.
    5. The date of issuing the Tax Invoice.
    6. The date of supply if different from the date the Tax Invoice was issued.
    7. A description of the Goods or Services supplied.
      1. For each Good or Service, the unit price, the quantity or volume supplied, the rate of Tax and the amount payable expressed in AED.
      2. The amount of any discount offered.
      3. The gross amount payable expressed in AED.
      4. The Tax amount payable expressed in AED together with the rate of exchange applied where currency is converted from a currency other than the UAE dirham.
    8. Where the invoice relates to a supply under which the Recipient of Goods or Recipient of Service required to account for Tax, a statement that the Recipient is required to account for Tax, and ato the relevant provision of the Decree-Law.
  • Simplified Tax Invoice

    A simplified Tax Invoice shall contain all of the following particulars:

    1. The words “Tax Invoice” clearly displayed on the invoice.
    2.  The name, address, and Tax Registration Number of the Registrant making the supply.
    3. The date of issuing the Tax Invoice.
    4. A description of the Goods or Services supplied.
    5. The total Consideration and the Tax amount charged.