Tax Invoices and Tax Credit Notes

The government of United Arab Emirates have issued various laws and regulations as a part of VAT regime and one of the major law is Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax.

Title Thirteen of the above Decision explains what the Tax Invoices and Tax Credit Notes should contain. A brief summary of particulars to be included in these documents is as below. For detailed details, kindly read Title Thirteen.

As a minimum, Tax Invoice shall contain all of the following particulars:

1. The words “Tax Invoice” clearly displayed on the invoice.
2. The name, address, and Tax Registration Number of the Registrant making the supply.
3. The name, address, and Tax Registration Number of the Recipient where he is a Registrant.
4. A sequential Tax Invoice number or a unique number which enables identification of the Tax Invoice and the order of the Tax Invoice in any sequence of invoices.
5. The date of issuing the Tax Invoice.
6. The date of supply if different from the date the Tax Invoice was issued.
7. A description of the Goods or Services supplied.
8. For each Good or Service, the unit price, the quantity or volume supplied, the rate of Tax and the amount payable expressed in AED.
9. The amount of any discount offered.
10. The gross amount payable expressed in AED.
11. The Tax amount payable expressed in AED together with the rate of exchange applied where the currency is converted from a currency other than the UAE dirham.
12. Where the invoice relates to a supply under which the Recipient of Goods or Recipient of Services is required to account for Tax, a statement that the Recipient is required to account for Tax, and a reference to the relevant provision of the Decree-Law.

A Simplified Tax Invoice shall contain all of the following particulars:

1. The words “Tax Invoice” clearly displayed on the invoice.
2. The name, address, and Tax Registration Number of the Registrant making the supply.
3. The date of issuing the Tax Invoice.
4. A description of the Goods or Services supplied.
5. The total Consideration and the Tax amount charged.

The Tax Credit Note shall contain the following:

1. The words “Tax Credit Note” clearly displayed on the invoice.
2. The name, address, and Tax Registration Number of the Registrant making the supply.
3. The name, address, and Tax Registration Number of the Recipient where he is a Registrant.
4. The date of issuing the Tax Credit Note.
5. The value of the supply shown on the Tax Invoice, the correct amount of the value of the supply, the difference between those two amounts, and the Tax charged that relates to that difference in AED.
6. A brief explanation of the circumstances giving rise to the issuing of the Tax Credit Note.
7. Information sufficient to identify the supply to which the Tax Credit Note relates.