UAE Tax Invoice

What Is Tax Invoice?

Tax Invoice (UAE Tax Invoice ) is a written or electronic document in which the occurrence of a Taxable Supply is recorded with details.

Components of Tax Invoice:

(1) The name, address, and Tax Registration Number of the Registrant making the supply and the Recipient where he is a Registrant
(2) A sequential Tax Invoice number,
(3) The date of issuing the Tax Invoice and date of supply,
(4) A description of the Goods or Services supplied, the unit price, the quantity
(5) Tax rate and the amount payable, any discount offered
(6) An amount payable in AED, apply convert rate where necessary.

Note: A taxable person must follow components of tax invoice when he issues.

Components of Simplified Tax Invoice:

(1) The name, address, and Tax Registration Number of the Registrant making the supply.
(2) The date of issuing
(3) A description of the Goods or Services supplied.
(4) The Tax amount charged.

Exemption from Tax Invoice:

Where the supply is zero-rated no need for issuing of invoice

Circumstances in Which Simplified Invoice is Issued:

  • if Recipient of goods or services is not a Registrant.
  • if Recipient is a Registrant and the amount of supply is less then AED 10,000

Where The Invoice Is Not Issued:

In case of Taxable Person makes more than one supply of Goods or Services to the same person and those supplies are included in the summary tax invoice issued to the recipient in the same calendar month.

Electronic Tax Invoice:  

If the taxable person issue credit notes electronically then:

  • The Taxable Person must able to storing a copy of the electronic Tax Invoice to follow the records keeping requirement, and integrity of the content of the electronic credit note should be guaranteed.

Conditions Where Recipient Raise Invoice On Supplier Behalf:

The documents shall be treated as it has been issued by the supplier if the following conditions met.

  • The Recipient is a Registrant.
  • The supplier and the Recipient agree in writing that the supplier shall not issue a Tax Invoice in respect of supply.
  • Tax Invoice contains all components and the word Tax invoice is clearly displayed.

Note: The documents shall have treated as if they had been issued by the supplier if the above conditions met.

What If An Agent Made A Supply?

Where an agent who is a Registrant makes a supply of Goods or Services on behalf of the principal of that agent, that agent may issue a Tax Invoice in relation to that supply he made, and the principal shall not issue a Tax Invoice.

Where The Supply Made In Implementing State:

Following additions must require:

  • The tax registration number of the Recipient of Goods or services issued to him by authority of the Implementing State.
  • A statement identifying the supply as between the State and an Implementing State.
  • Any other information specified by the Authority.

 GCC States:

All countries that are full members of The Cooperation Council for the Arab States of the Gulf pursuant to its Charter.

 What is the Implementing States?

The GCC States that are implementing a Tax law (UAE Tax Invoice) pursuant to an issued legislation

Read more about Tax Credit Note Article (59)