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How to prepare VAT invoice in UAE


Know here How to prepare VAT invoice in UAE in Details. A VAT invoice is an essential document whose format varies from country to country. The UAE follows a set of regulations for the same, which you must be familiar with, if you are keen to do business here. How to register as a Tax Agency

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How to prepare VAT invoice in UAE

The Federal Tax Authority (FTA) has clearly defined the VAT invoice format in the UAE. It must have a Tax Registration Number (TRN). Irrespective of the business that you are into, it is very crucial to know how to prepare VAT invoice in the UAE. If you do not comply with the format issued by FTA, you might have to bear fines and penalties. As laid down by the FTA, there are two kinds of invoices for VAT in the UAE; supply for less than the specified amount will be expected to maintain a simplified VAT invoice; this holds good for supermarkets and the retail industry. However, if the supply exceeds the specified amount, then you will need to have a detailed invoice.

If your supply is less than the specified amount, you should have a simplified VAT invoice with the following things-

  1. Tax invoice in a prominent position
  2. Name, address, and TRN of supplier
  3. Date of issue
  4. Description of goods or services
  5. Total payable amount
  6. Total VAT chargeable

How to prepare VAT invoice in UAE Know Here

For supplies above the specified amount, you need to furnish the following details:

  1. Tax invoice clearly displayed on the invoice
  2. Name, address, and TRN of supplier
  3. Name, address, and TRN of recipient, if they are a registrant
  4. A unique and sequential invoice number
  5. Date of issue
  6. Date of supply, if it is different
  7. Description of goods or services
  8. Unit price, quantity or volume of the supply, rate of tax and amount payable in AED
  9. Discount value, if any
  10. Gross value payable in AED
  11. Tax amount payable in AED
  12. Statement related to reverse charge, if applicable

A full tax invoice should also show the total gross amount payable, which is mentioned in AED. Since a full tax invoice includes several line items, each is supposed to have the net payable amount as well as the due tax. The FTA affirms that a full tax invoice does not necessarily need to include gross amounts for each line item, since it anyway mentions the total gross amount payable for the invoice. For a tax invoice issued in foreign currencies, the tax amount payable should be put down in AED, along with the exchange rate applied.

Get Transaction advisory in Dubai

Transaction advisory in Dubai makes in mandatory for all registrants to issue a tax invoice for taxable supplies to other registrants, where the supplies concerned exceeds 10,000. Thus, the following criteria are to be met for issuing a tax invoice:

  • The recipient should be registered, and
  • The supplies in question should be more than AED 10,000

Our consultant from GCC Filings will extend every kind of assistance when it comes to preparing VAT invoices in the UAE. Our professionals are thoroughly familiar with the tax procedures and will offer effective advice so that you have a smooth, seamless experience.

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