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How to prepare a VAT invoice in the UAE

By addone, January 09, 2018 | Business Information VAT

The introduction of VAT has presented a number of new challenges for businesses in the UAE, with almost every area of an organisation being affected in some way. Arguably the most significant implication of VAT however surrounds the process of correctly identifying, recording, and charging VAT, therefore leaving many businesses asking the question of how to prepare a valid VAT invoice.

According to the Federal Tax Authority in the UAE, all VAT-registered businesses are required to issue a valid VAT invoice within 14 days of the supply of goods or services. To be deemed valid, there is a specific format that VAT invoices must follow, but the information contained in them can vary if you are creating a simplified VAT invoice for the supply of goods or services up to the value of AED10,000. It is also important to note that VAT invoices, both issued and received, must be retained for a minimum of five years.

What to include in a VAT Invoice

According to the Federal Tax Authority, a VAT invoice must include:

  • -“Tax Invoice” in a prominent place
  • -Name, address, and Tax Registration Number of the supplier
  • -Name, address, and Tax Registration Number of the recipient (if they are VAT registered)
  • -A sequential or unique identifying invoice number
  • -Date of issue
  • -Date of the supply of the goods or services
  • -Description of the goods or services
  • -The unit price, quantity, rate of tax, and amount payable in AED
  • -The value of any discount offered
  • -The total amount payable in AED
  • -The total amount of VAT chargeable in AED
  • -A statement relating to reverse charge (only applicable for purchases made outside of the UAE)

A Simplified VAT Invoice

For the supply of goods or services less than AED10,000, it is possible to send a simplified VAT invoice, which, as the name suggests, is a streamlined version of a standard invoice. According to the Federal Tax Authority, a simplified VAT invoice must include:

  • -“Tax Invoice” in a prominent place
  • -Name, address, and Tax Registration Number of the supplier
  • -Date of issue
  • -Description of the goods or services
  • -The total amount payable in AED
  • -The total amount of VAT chargeable in AED

 

 

 

Advisors M.E. offer a range of cost-effective VAT services for business in the UAE and Saudi Arabia. For further information, please contact rosie@advisorsme.com, or call a member of the team on +971 525657334.

 

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