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 in UAE.
According to the FTA, there will be two kinds of invoices for VAT in UAE, Supply 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.
FTA Tax Invoice Format in UAE
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 on Discounted Invoices
VAT will be charged on the value which is arrived after considering the discount. VAT will be charged on the prices after giving the discount.
The discount will be allowed to be reduced from the value of supply only if the following conditions which are prescribed in UAE VAT Executive regulations are met:
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- The customer has benefited from the reduction in price
- The supplier funded the discount
Tax Invoices Issued in Foreign Currencies
The required contents of a tax invoice issued in foreign currencies will be as follows:
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- the tax amount payable expressed in AED.
- the exchange rate applied (as per the exchange rates published by the UAE Central Bank on the date of supply).
Rounding on Tax Invoices
Where a tax invoice is required to be issued and the tax chargeable on the supply is calculated as a fraction of a Fils, the value may be rounded to the nearest Fils on a mathematical basis.
Given that the tax amount should be calculated on a line by line basis on a full tax invoice as mentioned above, in practice this means that such rounding, if performed, should also be undertaken on a line by line basis.
Registered Tax Agent in UAE
BMS 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. 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.
BMS 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.
