UAE VAT Tax Invoice Format Explained

VAT-registered businesses in the UAE must issue a tax invoice for every sale where they charge VAT. According to the Federal Tax Authority (FTA), all invoices should include the specific information such as Tax Registration Number (TRN), invoice number, the date of transactions, VAT rate, and total amounts. The right format of the UAE tax invoice will assist you to stay in compliance, reduce audit risk and make valid claims of the VAT amount. This guide will cover types of invoices used in VAT within the UAE and the required fields in such invoices. We are also going to elaborate how to make an invoice that meets the existing FTA requirements. Let’s get started.

UAE VAT Invoice Compliance Requirements

VAT and tax invoice rules have official guidelines in the UAE. The core laws are what businesses need to undertake and the needed regulations of the invoices. The FTA observes conformity and provides support to enable the businesses to adhere to the regulations.

Legal requirements is based on following components:

• Federal Decree-Law No. 8 of 2017 (VAT Law): It was introduced with VAT and has the main principles like registration, taxable supply, the importance of issuing tax invoices and credit notes.
• VAT Executive Regulations (Cabinet Decisions): Specifying the requirements of the invoice with the information necessary and simplified invoices may be used when.
• Federal Decree-Law No. 28 of 2022 (Tax Procedures Law): Day to day tax functions and registration, VAT returns, payment, maintenance of records, audits and penalties.
• Executive Regulations of the Tax Procedures Law: Contain comprehensive penalties and procedures of compliance.
• Ministerial Decisions + FTA Guides/Clarifications: Provide further information on how the rules are applicable in actual cases.

Types of VAT Invoices Used in the UAE

Businesses in the UAE will have two types of VAT invoices. A standard tax invoice to use during B2B transactions and sales exceeding AED 10,000 and a simplified tax invoice to use during B2C transactions and sales below AED 10,000. From July 2026, obligatory e-invoicing will be implemented for B2B transactions to facilitate FTA

1. Standard Tax Invoice

When the sale amounts over AED 10,000 or the customer is VAT-registered, a standard tax invoice is used . It includes all the information of the seller, buyer and the goods or services sold. This information allows the transaction to be easily tracked and makes it possible to claim VAT such as input VAT or refunds. A Standard Tax Invoice should include the following on a mandatory basis:

Here are the following mandatory elements for Standard Tax Invoice:

• Header: “Tax Invoice”
• Supplier Details: Supplier name, address, TRN
• Customer Details: Customer name, address, TRN (if VAT-registered)
• Invoice Details: Unique sequential invoice number, invoice date (date of issue)
• Supply Date: Date of supply (if different from invoice date)
• Item Details: Description of goods/services, quantity (or service period), unit price
• VAT Details: VAT rate, VAT amount (per line item and total VAT)
• Totals: Total before VAT (net), total VAT, total including VAT (gross) in AED
• Discounts/Adjustments: Any discounts or adjustments shown clearly (if applicable)
• Reverse Charge Note: Mention reverse charge if it applies (if applicable)
  

2. Simplified Tax Invoice 

A simplified VAT invoice is just a shorter version of a regular invoice yet in compliance with the UAE VAT regulations. Use it on sales of less than AED 10,000, or when the sale is made to a customer who is not registered to VAT. Many small transactions are easier to handle with the format and it is popular with supermarkets, cafes, as well as small retailers. The Simplified Tax Invoice will require mandatory items that include:

• Header: “Simplified Tax Invoice” (or “Tax Invoice”)
• Supplier Details: Supplier name, address, TRN
• Invoice Details: Invoice date (date of issue), unique invoice number (recommended/best practice)
• Item Details: Description of goods/services
• VAT Details: VAT rate (if shown) and VAT amount included (or VAT-inclusive statement)
• Totals: Total amount payable including VAT in AED
• Exclusions: Buyer name, address, and TRN are usually not required on a simplified invoice

Standard vs Simplified Tax Invoice Comparison

Here is the quick comparison table to understand the key differences between a standard and a simplified tax invoice in the UAE:

UAE E-Invoicing Requirements & Timeline

The UAE will also implement mandatory e-invoicing in phases beginning 1 July 2026. At first, companies will enter voluntarily and e-invoicing will become mandatory. Rules primarily cover B2B and B2G transactions. Invoices should be issued in XML or JSON format by the businesses not PDF. These invoices have to be submitted via an Always-On-Service Provider (ASP) via the Peppol network. Every e-invoice information has to be provided to the FTA and stored in the UAE during the necessary time.

Key E-Invoicing Requirements

• Implement an ASP based on FTA certified e-invoicing system.
• Issue invoices in XML/JSON constrained format.
• Send invoices via Peppol network.
• Registrations of invoice information with FTA.
• Retention e-invoice information in the UAE to the necessary retention term.
• E-issue e-invoices and credit notes within 14 days of the transaction.
• B2B and B2G (B2C not yet) transactions.

KWS & CO reviews your invoicing process, validates required data fields, and guides your ASP and People readiness. Contact KWS & CO to prepare for UAE e-invoicing.

Common Mistakes That Make a Tax Invoice Non-Compliant

In the UAE, issuing a tax invoice that does not meet FTA requirements can result in a penalty of AED 5,000 per incorrect invoice. Below are the most common invoice mistakes flagged as non-compliant:

1. Invalid or Missing Tax Registration Numbers

Common e- invoicing errors include invalid TRN such as omission of digits, expired numbers or incorrect buyer details. TRNs are automatically matched with the VAT registry. TRNs are automatically matched with the VAT registry. Non-matches can block VAT claims of the buyer, designate non-compliant sellers and initiate FTA inspection in case of repetition.

• Flag the seller as non-compliant
• Make the invoice invalid for tax purposes
• Trigger FTA reviews if repeated

2. VAT Calculation and Rate Errors

Most teams think that presence of VAT in the invoice is fine but VAT should only be computed on the amount of tax to pay, not the entire bill. VAT is to be calculated by subtracting discounts, non-taxable charges and occasionally freight. When VAT is charged on the total amount, systems cause little error to multiply on a great number of invoices and easily identify any automatic check.

3. Using the Wrong Invoice Type Code

The UAE e-invoicing has certain invoice type codes. Every type of document, such as tax invoice, simplified tax invoice, credit note, debit note, etc has its format and rules. The invoice is also not compliant even when the VAT and totals are correct. The issuing of a standard invoice to a small cash sale or a simplified invoice to a large B2B sale makes the invoice non-compliant. 

4. Non-Structured Invoice Formats

PDF and email invoices do not adhere to UAE e-invoicing requirements. Invoices should be in a standardized electronic format that may be read and confirmed by tax systems with machine-readable elements like supplier information, buyer TRN, value added tax, type of tax and description of line items.

5. Delayed Submission to the Tax Platform

There are businesses that develop invoices within their system and upload them subsequently. UAE e-invoicing has to be submitted almost in real-time. Delayed payments undermine the audit trail and bring about inconsistency between the records of the seller and buyer. It should be provided in real time when the transaction takes place.

6. Missing Mandatory Fields

Certain information is necessary in each invoice. The omission of some fields such as customer address, country code, VAT details may cause rejection. These fields are not always filled by correct options on many ERP systems and a tax system can instantly search and find missing data.

How KWS & CO Can Help With UAE Tax Invoice Format?

KWS &CO can help businesses comply with the UAE format of tax invoices through the review of invoices. We detect gaps in compliance and development of appropriate templates of typical and simplified invoices, as well as credit and debit notes. We calculate VAT correctly, streamline invoice processes between teams and systems. Our team trains you on e-invoicing needs and facilitates audit-readiness and invoice amendments to minimize the penalty risk.

FAQs

What does a tax invoice mean in the UAE?

A tax invoice is a document presented by a VAT-registered company in the UAE that captures the sale and displays VAT information. It enables the purchaser to justify input VAT claims within the compliant regulatory frameworks.

At what time does a tax invoice have to be issued in the UAE?

The business under a VAT registration is required to make a tax invoice within 14 days after the date of supply. Reporting VAT in the correct period will be ensured by timely issuance, which will aid good record keeping and adherence.

What are the types of VAT invoices in the UAE?

There are two primary types of VAT invoices used in the UAE, a standard tax invoice used in B2B transactions of high value. Simplified tax invoice invoice used on low-value purchases or transactions with buyers and consumers below AED 10,000.

What should be specified on a UAE tax invoice?

The UAE tax invoice should provide the information related to Tax Invoice, supplier and customer numbers with TRNs, invoice number and dates, description of items, VAT rate and amount and total values in AED.

Is it possible to have a tax invoice in another currency UAE?

Yes, you can issue a tax invoice in a foreign currency in the UAE. You must also show the VAT amounts in AED by converting the foreign currency amounts to AED, as required by FTA rules.