Tax Invoice

What is a Tax Invoice?

A Tax Invoice is a document issued by a VAT-registered supplier that meets all the requirements set by the Federal Tax Authority (FTA) for claiming input tax recovery. It must contain specific mandatory information to be considered valid for VAT purposes.

Mandatory Information on Tax Invoices

1
Invoice Number: Unique sequential number for tracking and audit purposes
2
Date of Issue: The date the invoice was created and issued
3
Supplier Details: Legal name, address, and Tax Registration Number (TRN) of the supplier
4
Customer Details: Name and address of the recipient (TRN required for B2B invoices over AED 10,000)
5
Description: Clear description of the goods or services supplied
6
Unit Price: Price per item or unit excluding VAT
7
Quantity: Number of items or units supplied
8
Taxable Amount: Total value of the supply excluding VAT
9
VAT Amount: Amount of VAT charged, shown separately
10
Total Amount: Total amount including VAT (taxable amount + VAT)

Types of Tax Invoices

Full Tax Invoice

Required for all B2B transactions and B2C sales over AED 10,000. Contains all mandatory fields listed above.

Use for: Business-to-business sales, high-value retail sales

Simplified Tax Invoice

Allowed for B2C retail sales under AED 10,000. Requires fewer details - customer name/address and individual item prices not mandatory.

Use for: Retail sales, restaurant bills, small purchases

Tax Invoice Sample Format

ABC TRADING LLC

Office 123, Business Tower, Dubai, UAE

TRN: 100123456700003

TAX INVOICE

Invoice No: INV-2024-001

Date: 15 January 2024

Bill To:

XYZ Company FZE

TRN: 100987654300003

Description	Amount
Professional Services	10,000.00
Subtotal (excl. VAT)	10,000.00
VAT @ 5%	500.00
Total (incl. VAT)	AED 10,500.00

Special Invoice Types

Credit Note: Issued to reduce or cancel a previously issued tax invoice (for returns, discounts, or errors)
Debit Note: Issued to increase a previously issued tax invoice (for additional charges)
Alternative Evidence: In limited cases, contracts or payment receipts may serve as alternative evidence, subject to FTA approval

Invoice Issuance Timing

Goods: Within 14 days of the supply date (when goods are delivered or made available)
Services: Within 14 days of the supply date (when services are completed)
Continuous Supplies: Invoice must be issued by the end of the period to which the supply relates
Advance Payment: Invoice must be issued when payment is received if before the supply

Common Mistakes to Avoid

Missing or incorrect TRN
VAT not shown separately from the total amount
Missing sequential invoice numbering
Issuing invoices before VAT registration is active
Not including customer TRN for B2B invoices over AED 10,000
Using incorrect VAT rates (mixing 5%, 0%, or exempt incorrectly)

Digital Tax Invoices

Electronic invoices (e-invoices) are acceptable for VAT purposes in the UAE, provided they contain all mandatory information and maintain data integrity. PDF invoices sent via email are commonly used and accepted by the FTA.