VAT Guide

Tips

Note: All invoices must include the TRN Number of the organization. The FTA has developed a VAT TRN Verification portal to check the validity of the TRN Numbers you receive from your business partners and suppliers. Watch the video of TRN Verification here. 

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.