In the UAE, a VAT-registered business must issue a tax invoice within 14 calendar days of every taxable supply. A full tax invoice must show the words "tax invoice", your TRN, the customer's details, a description of what you supplied and the VAT in UAE dirhams. A shorter, simplified invoice is allowed when the customer isn't VAT registered, or the sale is AED 10,000 or less.
Source: FTA: Tax invoices
Why Tax Invoices Matter
The FTA says a valid tax invoice helps the supplier set the date of supply and the tax period for the VAT. For the customer, it is the main evidence needed to recover VAT.
What a Full Tax Invoice Must Show
- The words "tax invoice", clearly displayed
- The date the invoice was issued
- The date of supply, if different from the invoice date
- A sequential or unique invoice number
- Your name, address and TRN
- The customer's name and address, and their TRN if they are registered
- A description of the goods or services
- For each item: the unit price, quantity, VAT rate and amount payable in AED
- Any discount offered
- The gross amount payable in AED
- The total VAT in AED, with the exchange rate and its source if another currency is used
- For reverse charge supplies: a statement that the customer must account for the VAT, with a reference to the VAT law
Source: FTA: Tax invoices
Full vs Simplified Tax Invoice
| Full tax invoice | Simplified tax invoice | |
|---|---|---|
| When to use | Any taxable supply | Customer not VAT registered, or registered customer and price (incl. VAT) is AED 10,000 or less |
| Customer details | Name, address and TRN (if registered) | Not required |
| Item breakdown | Unit price, quantity, VAT rate per item | A description that identifies the goods or services |
| VAT shown | Total VAT in AED | Total amount and VAT charged |
Example from the FTA: an individual buying AED 40,000 of clothes can get a simplified invoice. A registered store buying AED 10,001 of clothes needs a full tax invoice.
Source: FTA: Tax invoices
Other Invoice Rules
- Foreign currency: convert amounts to AED using a Central Bank approved rate
- Rounding: round VAT to the nearest fils
- Mistakes: correct errors with a tax credit note or an extra tax invoice, not by editing the original
- Buyer-created invoices: allowed if the buyer is VAT registered, both sides agree in writing, the invoice meets all full invoice rules and shows "buyer-created tax invoice"
- Electronic invoices: allowed if a copy is stored securely and the origin and content can be trusted
- Zero-rated supplies: a tax invoice isn't needed for a wholly zero-rated supply if your records show its details. See our zero-rated vs exempt guide
Source: FTA: Tax invoices
E-Invoicing Is Coming
The UAE is moving to a national e-invoicing system, with its own required fields and deadlines. See our e-invoicing deadlines guide to check when it applies to you.
Penalties
Not issuing a tax invoice or tax credit note costs AED 2,500 for each case. The same applies to electronic invoices that don't meet the conditions. See our VAT penalties guide.
Source: Ministry of Finance
Invoice Checklist
- Issue the invoice within 14 days of the supply.
- Show "tax invoice", the date and a unique number.
- Include your TRN and the customer's TRN if they are registered.
- List each item with price, quantity and VAT rate.
- Show the total and the VAT in AED.
- Keep a secure copy.
Frequently Asked Questions
How long do I have to issue a tax invoice in the UAE?
14 calendar days from the date of the taxable supply.
When can I issue a simplified tax invoice?
When the customer isn't VAT registered, or the customer is registered and the price including VAT is AED 10,000 or less.
Can I issue invoices in USD?
You can show another currency, but the VAT and totals must also be shown in AED using a Central Bank approved rate.
How do I fix a mistake on a tax invoice?
Issue a tax credit note or an additional tax invoice.
What is the penalty for not issuing a tax invoice?
AED 2,500 for each case.
Note: This article provides general information only and is not tax advice. Confirm the current requirements with the Federal Tax Authority or a qualified tax professional.