In short
- A full tax invoice has up to 12 particulars, a simplified one 5: Article 59 of the Regulation.
- The simplified form suits unregistered customers, and registered ones up to AED 10,000 a sale.
- Issue within 14 days of the date of supply. A simplified invoice is issued on the day itself.
- A tax invoice or credit note not issued in time costs AED 2,500 for each case found.
In this guide
What a tax invoice is in the UAE and who issues one
A tax invoice is the document in which a VAT-registered business records a taxable sale: who sold, to whom, what, for how much and with how much VAT. The VAT law counts paper and electronic documents alike.
- Only a registrant issues one, because the invoice carries a tax registration number. A business receives the number at VAT registration in the UAE.
- Every taxable sale gets one, issued and delivered to the customer. An invoice printed on request alone does not meet the rule, the Federal Tax Authority (FTA) says.
- A sale that is wholly zero-rated needs none when the records show its details.
A business that is not registered issues an ordinary invoice with no VAT line. Anyone who shows an amount as tax on an invoice owes that amount to the FTA.
Tax invoice format in the UAE: mandatory fields and FTA requirements
Article 59 lists the particulars. The table follows the text in force since 1 October 2026.
| Particular | Full tax invoice | Simplified tax invoice |
|---|---|---|
| The words Tax Invoice on the face of the document | Yes | Yes |
| Supplier: name, address and tax registration number (TRN) | Yes | Yes |
| Customer: name, address, and TRN when the customer is registered | Yes | No |
| Invoice number: sequential, or unique and showing its place in the sequence | Yes | No |
| Dates: the date of issue, and the date of supply when it differs | Both | Date of issue |
| Goods or services: a description, and for each line the unit price, quantity or volume, VAT rate and amount payable in AED | Yes | Description alone |
| Amounts: any discount, the gross amount payable in AED and the VAT charged in AED, with the exchange rate where converted | Yes | Total consideration and VAT charged, in AED |
| Reverse charge: a statement that the customer accounts for the VAT, with the article of the law | When it applies | Not allowed |
Counted one by one, that is 12 points for the full form and 5 for the short one.
On a full invoice each line shows its net amount and its VAT, and the gross amount of a line is optional. On a simplified invoice the lines may show prices with VAT in them, with the total and the VAT inside it at the foot. The FTA's own example: apples 10.00, bananas 15.00, milk 10.50, total 35.50, VAT 1.69.
Simplified tax invoice in the UAE: when it is allowed
The short form is allowed in two cases, and the supplier may issue the full one in both.
| Customer | Sale | Form |
|---|---|---|
| Not registered for VAT | Any amount | Simplified or full |
| Registered for VAT | Consideration of AED 10,000 or less | Simplified or full |
| Registered for VAT | Consideration above AED 10,000 | Full |
| Any customer | A sale under the reverse charge | Full |
Consideration is everything the customer pays, VAT included. A registered customer who pays AED 10,080 for a laptop, AED 9,600 plus AED 480 of VAT, is above the limit and receives a full invoice.
A till receipt or an order confirmation that carries the five particulars is a simplified tax invoice. The FTA may name cases in which the full form is required even when one of the two conditions is met.
When to issue a tax invoice: 14 days from the date of supply
| Document | Time limit |
|---|---|
| Full tax invoice | 14 days from the date of supply |
| Simplified tax invoice | On the date of supply |
| Summary tax invoice for the month's sales to one customer | 14 days from the end of the calendar month |
| Tax credit note | 14 days from the event that reduced the VAT |
The date of supply is the earliest of three days: the goods are handed over or the service is completed, the payment arrives, or the tax invoice is issued. A customer who pays on 3 March for goods delivered on 20 March has a date of supply of 3 March, and the invoice is due by 17 March.
Under a contract with periodic payments, such as rent or a retainer, each date of supply is the earliest of the invoice, the due date printed on it and the payment. One year from the day the supply was provided is the outer limit.
Rounding and tax invoices in a foreign currency
VAT that comes to a fraction of a fils is rounded to the nearest fils, which means two decimal places. Both formulas are in the UAE VAT calculator. The FTA rounds line by line, since a full invoice shows the VAT of each line: AED 2.357 becomes 2.36 and AED 9.862 becomes 9.86.
An invoice may be issued in dollars, euros or another currency. The VAT and the gross amount then appear in dirhams as well, and the invoice states the exchange rate. Three rules set the rate:
- It is the rate the Central Bank of the UAE publishes for the date of supply.
- It is used as published, with all its decimals: 3.672500, never 3.7.
- The Central Bank posts the day's rates at or after 6 pm. An invoice raised earlier in the day may use the rate on its site at that moment.
A consultancy bills USD 10,000 at the rate of the FTA's example, 3.672500. Beside the dollar figures the invoice shows a net amount of AED 36,725.00, VAT of AED 1,836.25 and a gross amount of AED 38,561.25.
An invoice in a foreign currency that shows no VAT in dirhams is not a valid tax invoice, the FTA says.
We do this for you VAT registration in the UAE from $350 a month with accounting
Tax credit note in the UAE: when to issue it and what it contains
A tax credit note lowers the VAT of an invoice already issued. The law names five events: the sale is cancelled, its tax treatment changes, the price is altered, the goods or services are returned, or VAT was charged in error.
When the correction lowers the VAT, the supplier issues the credit note within 14 days of the event. When it raises the VAT, the supplier issues a new tax invoice for the additional amount. A credit note carries:
- the words Tax Credit Note on the face of the document
- the name, address and TRN of the supplier, and of the customer when registered
- the date of issue
- the value of the supply on the invoice, the correct value, the difference and the VAT on that difference in AED
- a short explanation of why it is issued
- enough detail to identify the sale it corrects
The FTA's example: goods are sold for AED 105 with VAT, and a credit note follows for AED 21 with VAT. A second credit note on the same invoice starts from a value of AED 80 before VAT: AED 100 less AED 20.
The supplier reduces its output VAT. The customer reduces its input VAT in the tax period in which it receives the note.
Reverse charge, margin scheme and invoices issued by the buyer or an agent
| Case | What changes on the invoice |
|---|---|
| Sale under the reverse charge inside the UAE | A statement that the customer accounts for the VAT, with the article of the law. Always the full form |
| Import of goods or services | No invoice to yourself since 1 January 2026: keep the supplier's invoice and the import papers |
| Profit margin scheme | A statement that VAT was charged on the margin. The VAT amount is left off |
| Invoice raised by the buyer | Both sides registered, a written agreement, and the words Tax Invoice raised by buyer |
| Sale through an agent | The registered agent may invoice as if it were the seller and keeps the name, address and TRN of its principal |
| Summary invoice | One invoice for the month's sales to one customer replaces the separate ones |
What the customer needs to recover the VAT
A registered customer deducts input VAT in the first tax period in which two things are true. It holds the tax invoice with the details of the purchase, and it has paid or intends to pay in time. The payment rule and the deadlines are in input VAT recovery in the UAE. Before a purchase invoice goes into the return, check five points:
- The document is headed Tax Invoice and names the supplier with its TRN. Check the number at the first deal: TRN verification in the UAE.
- Above AED 10,000 it carries your own legal name, address and TRN.
- The description matches what you bought.
- The VAT is in dirhams, with the exchange rate when the invoice is in another currency.
- The supplier's file is in order: since 1 October 2026 the FTA also asks what you checked about the supplier.
A simplified invoice is a tax invoice too. The Regulation lets a supplier give one to a registered customer for a sale of AED 10,000 or less, and it supports the deduction of that purchase.
Keep issued and received invoices for 5 years after the tax period. The VAT Regulation asks for 15 years where the records relate to real estate.
Penalties for a wrong or missing tax invoice, and what e-invoicing changes
| What went wrong | Penalty |
|---|---|
| No tax invoice within the time limit | AED 2,500 for each case found |
| No tax credit note within the time limit | AED 2,500 for each case found |
| Conditions for issuing invoices and credit notes electronically not met | AED 2,500 for each case found |
| Invoices and other tax records not kept | AED 10,000, and AED 20,000 for a repeat within 24 months |
| Tax records not given to the FTA in Arabic when it asks | AED 5,000 |
These amounts have applied since 14 April 2026. The table has no line for a wrong field. The FTA has said of one such case, an invoice with no VAT in dirhams, that the business has failed to issue a valid tax invoice. A wrong VAT amount that reaches the return adds AED 500 for an incorrect return and 1% of the difference a month until it is disclosed.
How the format changes with e-invoicing
E-invoicing in the UAE starts on 1 January 2027 for the largest businesses and on 1 July 2027 for the rest. Invoices to businesses and government then travel as data through an accredited provider. Article 59 stays. The FTA says an e-invoice is a tax invoice when it carries the particulars.
- The simplified form and the exemption for wholly zero-rated sales do not apply to invoices issued as e-invoices.
- Rounding moves from the line to the invoice total.
- A customer that is not yet in the system still receives an ordinary tax invoice, for example a PDF.
We check your invoices before each return as part of accounting in the UAE, from $350 a month, and file the application behind them: VAT registration in the UAE.
