VAT Invoice

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VAT has been implemented in the UAE from January 1, 2018. A lot has been said and published about VAT and its impact on businesses, registration for VAT in the UAE, types of VAT, standard and exempt supplies, etc. However, there is one important element of VAT implementation that is not much talked about in the UAE when compared with some of the topics mentioned above and that is how VAT invoice would look like for a newly VAT registered business in the UAE.

VAT invoice is a document that is to be issued by a tax registered business in the UAE on account of supply of goods or services to customers. In UAE, a VAT registered business is required to issue a tax invoice to another registered business when the consideration for the goods supplied or services provided exceeds AED 10,000. So there are two conditions for issuing a tax invoice by a VAT registered business in the UAE and those are:

• The person receiving the goods/ services should be registered for VAT
• The consideration for goods supplied or services performed does not exceed AED 10,000

As per the guidelines issued by the tax authority with regards to the contents of the UAE VAT invoice, there are two types of VAT invoice:

• Simple tax (VAT) invoice
• Detailed tax (VAT) invoice

Simple VAT/ Tax invoice will be issued for supply less than AED 10,000 and would include the following:

• “Tax invoice” should feature at a prominent place in the invoice
• Name & address of the supplier
• Tax registration number (TRN) of the supplier
• Date at which the invoice is issued
• Details of goods supplied or services provided
• The total amount due to be paid by the recipient of the invoice
• The amount of VAT charged on the supply of goods/ services

The VAT/ Tax invoice will be issued for supply more than AED 10,000 and would include the following elements:

• “Tax invoice” should feature at a prominent place in the invoice
• Name & address of the supplier
• Tax registration number (TRN) of the supplier
• Name & address of the recipient of the tax invoice
• Tax registration number (TRN) recipient of the tax invoice
• A sequential/ unique invoice number
• Date at which the invoice is issued
• Date at which the goods supplied or service performed if different than the invoice issue date
• Details of goods supplied or services provided
• Quantity, unit price or volume supplied, rate of VAT and amount due to be paid in AED
• Any Discount provided by the supplier to the customer
• The amount of VAT charged on the supply of goods/ services and that too in AED
• In case of a reverse charge the tax invoice would also include a statement in this regards.

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