A tax invoice is not simply a bill with VAT added. UAE VAT law sets out what it must contain, and an invoice missing a required detail is not valid evidence for the buyer to recover the VAT on it.
What a full tax invoice must show
- The words Tax Invoice, clearly displayed
- Your name, address and Tax Registration Number
- The customer’s name, address and TRN where they are registered
- A sequential invoice number and the date of issue, plus the date of supply if different
- A description of the goods or services supplied
- The unit price, quantity, rate of VAT and amount payable in dirhams
- Any discount offered
- The gross amount payable and the VAT amount payable in dirhams
Simplified tax invoices
A simplified tax invoice can be used for retail-style supplies, where the customer is not registered for VAT or the consideration is below the set limit. It carries fewer details, but if your customer is a business that wants to recover the VAT, issue a full tax invoice.
Foreign currency invoices
If you invoice in another currency, the VAT amount must still be shown in dirhams, converted using the Central Bank exchange rate applicable at the date of supply. This is one of the most common findings in audits of exporters and online businesses.
Timing
A tax invoice must be issued within the period set in the VAT law after the date of supply. Late invoicing pushes VAT into the wrong return period, which is how businesses end up filing corrections they could have avoided.
E-invoicing is coming
From 2027, in-scope business-to-business and business-to-government invoices move to structured electronic invoices exchanged through an accredited provider. Cleaning up your invoice data now, especially customer names and TRNs, makes that transition far less painful.
Questions we are asked about this
My supplier's invoice has no TRN. Can I still recover the VAT?
No. Without a valid tax invoice the input VAT is not recoverable. Ask the supplier to reissue it correctly.
Can I issue invoices in a foreign currency?
Yes, but the VAT amount must also be shown in dirhams at the Central Bank rate for the date of supply.
Do I need a tax invoice for small purchases?
For recovering input VAT you need valid evidence. Simplified tax invoices are acceptable in the circumstances allowed by the VAT law.
Need help with this? VATAXSYS, VAT and Tax Consultant, handles vat filing for businesses across the UAE. Call +971 55 240 3135 or message us on WhatsApp for a free consultation.