What are the Contents of VAT Tax Invoice?

It is essential for every VAT-registered business in the UAE to issue tax invoices for all taxable sales. VAT invoices must include accurate and comprehensive information about the sales and collection of tax as prescribed by the Federal Tax Authority (FTA).

What is a VAT Tax Invoice?

A tax invoice is a document that details the VAT sales, including supplier and customer details, VAT amount charged, the total amount of supply including tax, and the VAT amount in words. The taxpayer is required to issue a tax invoice upon each taxable supply.

Contents of VAT Tax Invoice

There are two types of VAT Tax Invoices in the UAE— simplified VAT invoices and detailed VAT invoices. 

Simplified VAT Invoice

The issue of a simplified VAT invoice is for supplies less than the specified amount, and it becomes an issue when the clients are retail purchasers who are not required to provide a VAT number. This type of receipt is for use in supermarkets and the retail business. 

Contents of Simplified VAT Invoice

1. The invoice must clearly state “Tax Invoice.”
2. The Registrant’s name, address, and Tax Registration Number (TRN).
3. The invoice must include the date of transfer of merchandise by the company or the taxable person.
4. The Tax Invoice must consist of a description of the Goods or Services supplied.
5. The total tax levy.

Detailed VAT Invoice

A detailed VAT invoice should be issued when a supply exceeds a certain amount. This type of revenue is for wholesalers and merchants who manage more significant sums.

Contents of a Detailed Invoice 

1. A clear display of the words’ Tax Invoice’ on the invoice.
2. The Recipient’s name, address, and TRN of the taxable individual.
3. The Recipient’s name, address, and TRN of the client.
4. The Tax Invoice number, which allows identification of the Tax Invoice and the order of the Tax Invoice in any bill arrangement, must be included in the invoice.
5. The date of the Tax Invoice issue.
6. If the date of supply differs from the date of the Tax Invoice issued by the company, include it in the tax invoice.
7. A description of the goods or services.
8. The unit price of products or services, the quantity of supply, the tax rate, and the amount payable in AED.
9. The amount of any applicable discount.
10. The total sum payable as a percentage
11. The tax is payable in AED, plus the exchange rate when the currency is not the UAE Dirhams.

Conclusion

A supplier can arrange and structure the tax invoice according to the regulations. However, mechanisms must be in place to ensure the accuracy of all information and compliance with the rules made for the issue of the tax invoices in UAE for VAT purposes.

We are here to Help

Failure to comply with the criteria of a tax invoice under VAT in the UAE will result in significant fines, and that’s where Flyingcolourtax‘s qualified professionals can help you. We are specialist tax services such as UAE VAT registration, VAT deregistration, VAT compliance / VAT Return, and excise tax services. We also provide free consultation on Corporate Tax. 

Book your free consultationwith us to know more about the comprehensive services.