VAT in GCC
Simplified Tax Invoice under VAT in UAE
A Simplified Tax Invoice is basically a simplified version of a Tax Invoice, in which fewer details are required to be mentioned, as compared to a 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
Hence, Simplified Tax Invoices are the type of invoices to be issued by all registered businesses in UAE which supply to consumers or to registered businesses where the value of the supply does not exceed AED 10,000.
Simplified Tax Invoice format
The details required to be shown on a Simplified Tax Invoice, are lesser as compared to a Tax Invoice. Both a Tax Invoice and Simplified Tax Invoice have to be prepared with the same heading but the Simplified Tax Invoice, does not require the collection of details of the recipient.
A detailed VAT Invoice will consist of the following details:
- Name, address, and TRN of the supplier.
- 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.
The Invoice WILL NOT contain the Tax Registration details of the recipient.
Hence, a Simplified Tax Invoice is easier to prepare, as compared to a Tax Invoice. However, for retail businesses and businesses whose supplies to registrants are for a value less than AED 10,000, it is important to ensure that simplified tax invoices are issued for all taxable supplies of goods or services.