As of 1 January 2018, the government of UAE enacted a 5% value-added tax on specific goods and services. Under this new tax law, mostly all type of industries are covered but with some special rules for education, healthcare, international transportation, properties, bare land, local transport, crude oil/natural gas, investment in gold/silver/platinum, financial services, life insurance, exports.

When Should You File a VAT Return?

All registered businesses should submit a monthly or quarterly record of their VAT return as may be notified to them through there VAT registration certificate. Further, it is advisable for registered businesses to also check VAT return period in their online account on www.tax.gov.ae since recently Federal Tax Authority (“FTA”) has relaxed the filing period by few months in certain cases.

Timely submission of your return will keep your records and books in good standing with the tax authorities and avoid any penalties that can be imposed.

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How to charge VAT?

UAE VAT Registered Taxable Person (corporate or individual or other) – All VAT registered taxable persons must issue a Tax Invoice when taxable goods or services are supplied in the UAE on/or after 1 January 2018. Federal Tax Authority has established certain rules regarding type of invoice that may be issued when a taxable good or service is supplied and also regarding timing of issuing such invoices.

Which Type of VAT Invoice: Simplified or Detailed?

According to the guidelines issued by Federal Tax Authority (FTA) in relation to the contents of UAE VAT Tax Invoice, there are two types of Tax Invoice that can be issued:

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• Simplified Tax Invoice – Issuing a Simplified Tax Invoice is an option which may be applied by a Taxable Person if certain conditions are met. Simple VAT Invoices can be issued for supply less than AED 10.000. Simple VAT Invoices are issued for retail consumers, and they don’t require a VAT number. This type of invoice is common for supermarkets and other businesses within the retail industry.

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• Detailed Tax Invoice – Detailed VAT Invoice is an option when a registered business supplies goods or services to another registered user. These invoices will be issued for supply of goods or services more than AED 10,000.

The below chart outlines conditions necessary for a Taxable Person to be eligible for issuing a Simplified VAT invoice.

VAT Tax Invoice Requirements UAE

Understanding VAT Tax Invoice Requirements

Once you have determined which invoice format will be issued, you must include the minimum requirements for the FTA when filing your monthly VAT Invoice.

Detailed Tax Invoice Requirements

Simplified Tax Invoice Requirements

● “Tax invoice” in a prominent place ● Sequential number ● Date of issue of invoice ● Time of supply (if different) ● Name, address and TRN of supplier ● Name, address and TRN of recipient ● Description of goods or services ● Unit price, quantity supplied, rate of tax and amount payable in AED ● Value of any discount allowed ● Gross value payable in AED ● Tax amount payable in AED ● Exchange rate applied (if applicable) ● Statement relating to reverse charge, if applicable

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

When to Issue a Tax Invoice: The Basics

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• Article 67 of UAE VAT Decree law requires the Registrant shall be issued a Tax Invoice within 14 days of the date of supply, as stated in Article (25) of this Decree-Law (see below).

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• Article 25 of UAE VAT Decree Law requires a Tax shall be calculated on the date of supply of Goods or Services, which shall occur before any of the following:

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• 1.
• The date on which Goods were transferred (if such transfer was under the supervision of the supplier).

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• 2.
• The date on which the Recipient of Goods took possession of the Goods (if the transfer was not supervised by the supplier).

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• 3.
• The date on which the assembly or installation of Goods was completed (applicable when Goods are supplied with assembly and installation).

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• 4.
• The date on which the Goods are imported under the Customs Legislation.

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• 5.
• The date on which the Recipient of Goods accepted the supply, or a date no later than (12) months after the date on which the Goods were transferred or placed under the Recipient of Goods disposal (if the supply was made on a returnable basis).

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• 6.
• The date on which the Services were completed.

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• 7.
• The date of receipt of payment or the date on which the Tax Invoice was issued.

Please note special provision applies concerning the supply of goods or services that includes periodic payments or consecutive invoices.

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If you have any additional comments, questions, or concerns pertaining to the UAE VAT Tax Invoice Format and need Tax consultancy in Dubai or VAT services in Dubai & UAE, please contact us at info@premier-brains.com. Our team is trained to handle the most complex of returns and are happy to assist.