How to prepare VAT invoice in UAE – UAE VAT invoice format

How to prepare VAT invoices in UAE

VAT Invoice Format

FTA has defined a VAT invoice format in UAE. How to prepare VAT invoice in UAE is a very important question and task for all the business.  A VAT invoice must have Tax Registration Number (TRN).

All the businesses must follow the format of VAT invoice issued by FTA otherwise they will get the VAT fines and penalties.

According to the  FTA, there will be two kinds of invoices for VAT in UAESupply for less than the specified amount will be considered to maintain a simplified VAT invoice – specifically for supermarkets and retail industry. However, supply for more than the specified amount will have to make a detailed invoice.

Simplified VAT invoice for supply less than the specified amount should consider the below:

  • “Tax invoice” in a prominent place
  • Name, address & TRN of supplier
  • Date of issue
  • Description of goods or services
  • Total amount payable
  • Total VAT chargeable

The VAT invoice for supplies above than the specified amount should consider the below:

  • “Tax invoice” in a prominent place
  • Name, address & TRN of supplier
  • Name, address & TRN of recipient (where they are a registrant)
  • A sequential or unique identifying number
  • Date of issue
  • Date of supply if different to the date of issue
  • Description of goods or services
  • Unit price, quantity or volume supplied, rate of tax and amount payable in AED
  • Value of any discount offered
  • Gross value payable in AED
  • Tax amount payable in AED
  • Statement relating to reverse charge if applicable
VAT invoice format

SAB Auditing offers Tax Agent Services in the UAE to the clients by giving them proper guidance and assisting them to comply with the new TAX provisions in the UAE.

SAB Auditing of Accounts is a certified tax Agent in UAE. Our Tax Experts have handled and controlled a lot of situations and provided the best suitable solutions to the companies to corroborate that businesses will constantly operate in a smooth and best possible way.

SAB is equipped with a team of thriving VAT specialists who can help your business to overcome expected roadblocks such as lack of familiarity with VAT rules & regulations, structure and compliance issues, lack of resources and lack of a compliant accounting system.

39 thoughts on “How to prepare VAT invoice in UAE – UAE VAT invoice format

  • Hello…

    Our’s is a Steel Fabrication company and it started in april 2017.

    Till now we have business transactions over 1 million.

    Our employee strength is 1 to 15 .

    Assist us to register in Vat and to do our tax filing and returns.

  • Sir,

    Our turnover is less than 3.75 but registered and availed Trn number.
    Pls advice how to make invoice and invoice format. We have not installed tally and billing manually

  • Is it necessary to give the total horizontally? or we can design our invoice showing total vertically (Gross Amount Total, VAT Total & Net Total). I have searched all government guidelines and they have mentioned only required fields, no matter what is the design of invoice.

  • Are we allowed to raise consolidated invoices for the month, for example I usually practice raising invoices on 31st for material supplied from 1st-31st. Is this practice allowed or will I have to raise invoices weekly/bi-weekly?

  • Sir Kindly clarify these points;

    1. For commercial invoice or shipping invoice, do we need to put “TAX INVOICE” ?
    2. For invoicing in other currencies like US dollar is it mandatory for the invoice to be in AED? Or we proceed with USD and later part in filing for vat return just to convert it to AED?

  • Sir,
    Do we have to raised tax invoice on gross value or net value in construction company???
    Gross Value -Advance -Retention=Net Value
    Which amount will be charged for VAT??
    Gross or net

    • but your supplier will charge you VAT and you will pay it from your own pocket and it will be a loss for you as well as a risk of getting penalties and fines because you are not collecting tax from your clients on behalf of the government and it is against the Law.

  • Our company name was thomas&james LLC and now changed the name to T&J LLC. Our many suppliers are still raising tax invoice to us in the old name.(Thomas &James LLC) .Our trade license number,address and ownership and all other things reamianed the same.

    Can we claim back the tax paid to our suppliers in the old name.(thomas&james LLC in place of T&J LLC)

    Jo mangal

  • Hi,

    We are working as Export company? What kind of invoice we will submit for custom purpose? Is it tax invoice?
    Our selling price is less than the bill of entry but if we declare same as tax invoice, custom will request us to pay duty instead of refund?
    Kindly clarify.

  • Hello, how to create an Invoice in Contracting Company? Is Vat applicable on % of Work Completion Or on Net Value (after deducting retention/etc.)?

  • We are in the project related trading business and stage wise payments from customer. Advance payment, progressive payment and after delivery. We can issue system generated TAX invoice at the time of delivery. How can we issue TAX Invoice for advance payment and progressive payment. Before we have proforma invoice for advance payments, now as per FTA we need to issue TAX Invoice. Please provide the accounting entry details while issue the advance payment tax invoices and entry upon receipt of fund.

  • Dear Sir,
    We are a real estate company ,do we need to pay 5% as VAT from our commission collected ? or we just want to collect 5 % from the commercial property and pay to the government .

  • We are labour accommodation provider, providing accommodation to companies for their labour and services separately from March 2018. We understand services are taxable and obtained vat registration in June 2018 and fta provided us first vat period from 1st June 2018. Now if we want to invoice customer for the period Mar 18 to May 2018, can we put invoice dates corresponding to the period Mar 2018 – May 2018 ?

    Appreciate your response

    Best Regards,

    • Yes you can, but you should have LPO or service request for the prior period along with the delivery note which indicates the time of service delivery. (The time of service delivery must be clearly stated in the invoice.)
      Let us know if you need VAT, Accounting or Audit services. We are certified by the Ministry of Economy as well as Federal Tax Authority.

  • Dear Sir,
    We are trading company in Sharjah. We are selling electrical goods to cash customer and trading company also. Please give advice to make invoice. Please send me a sample invoice for
    1. Cash customer
    2. Trading customer

  • Hi sir, We have some suppliers who submit the service related invoices, these invoices do not have any QTY- as this is understood that QTY is 1.00 in case of service.

    Should be insist the supplier to submit invoice mentioning the QTY ?

    • No, you don’t have to insist the supplier to submit invoice mentioning the QTY. It would be better if you give us a call on 042594747 in order for us to understand the scenario in a better way with more details. Thank you!

  • how to manage school account for vat? we have zero rated fees, transport fee (exempt) and some other fee (standard rated). how to make tax invoice? and then submit these records?

    • You need to segregate and mention the VAT rate in each invoice, if it is rated then you must mention 5% and if it is zero rated, then you must mention 0%. If it is exempt then mention that it is exempted. And then submit to FTA.
      For more information, Feel free to contact us.

      Thank you

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