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What Information Must be Included in Your Tax Invoice
Post By: admin July 27 2021

What Information Must be Included in Your Tax Invoice In UAE?

Tax Invoice is the quintessential record issued by a VAT-registered person to the recipient when a taxable supply of goods or services is done.  Article 59 of the Executive Regulations on VAT directs the requisites for a Tax invoice and when it must be issued. A tax invoice must include certain important information such as the inclusion of the word “Tax Invoice”, Supplier’s name, Address, Tax Registration Number, Total amount, and more. Before getting into the details about the requirements of a tax invoice in UAE, know some basic information about Tax invoices, their types, and other related conditions. 

What is a Tax Invoice?

A tax invoice can be referred to as a written or electronic document issued by a registrant when the supply of taxable goods or services is made. As per the VAT law, it is mandatory for all the registrants to issue a tax invoice for all kinds of taxable supplies made to other registrants if the consideration of such supplies exceeds AED10000.  In the following sections we'll look at what information must be included on a tax invoice.

For issuing a tax invoice the following two conditions must be met:

  • The recipient must be registered
  • The consideration made for the supplies must exceed AED 10000

 As per the FTA guidelines there are two types of Tax Invoices:

Simplified tax invoice

This invoice is issued for the supplies less than the specified amount. It is issued when the client is a retail purchaser who does not have the VAT number. This type of invoice is for supermarkets and other retail industries who supply goods to end customers.

Detailed tax invoice

This invoice is issued for the supplies more than the specified amount. It is issued to the registrants who are allotted with the VAT number. These types of invoices are mainly for traders and wholesalers. The invoice is issued by a registered business to another registered user for the goods or services supplied.

What are the key contents of a Tax Invoice?

Contents of tax invoice are classified on the basis of simplified and detailed tax invoices as follows:

Simplified tax invoices

  • The word “Tax Invoice” must be displayed at a notable place
  • Supplier’s name, address and the Tax Registration Number must be included
  • Date on which it is issued
  • Adequate description of the goods or services supplied
  • Total amount to be payable for the supplies made
  • Total tax charged on the supplies

Detailed tax invoices

  • The word “Tax Invoice” must be displayed at a notable place
  • Supplier’s name, address and the Tax Registration Number must be included
  • Recipient’s name, address and the Tax Registration Number must be  included (if they are registrants)
  • It must contain a unique tax invoice number, which can be used to identify the tax invoice.
  • Date on which it is issued
  • Date of supply if it is different from the date of issuance of invoice
  • Adequate description of the goods or services supplied
  • Chargeable price per unit, quantity supplied,  applicable tax(in AED)
  • Amount of discount if applicable
  • Gross payable amount(in AED)
  • Amount of tax payable (in AED)
  •  Reverse charge statement if applicable


As per the FTA guidelines every supplier must comply with the above said contents in a Tax Invoice. It should contain all the required detail, if the suppliers or the registrants do not comply with the following contents then they will have to pay an Administrative Penalty, hence all the business entities must ensure that they comply with the respected laws and regulations. Even the customers or the recipient of the taxable supplies must ask for an invoice for which they have paid the consideration, because it is an evidence of the transaction made related to the supplies. It will also by providing transparency, will protect the recipient from being cheated like giving higher rates of tax than the actual rates etc.

Also Read How a tax consultant can save business money

How can a business entity avoid errors in a Tax Invoice? 

As per the VAT law every registrant must mandatorily provide adequate information in Tax Invoice, it must not be incomplete or contain any false information otherwise the registrant will be liable to pay administrative penalty. The perfect way to ensure that the invoice contains all the required information as per the law is to use a software which would notify the user if any information is not included and it would also help to make the changes in the invoice as per the updates brought in the law. Adopting such software will save the registrant from paying the penalties and issuing the invoices on time to the recipient. In fact businesses should take these measures to provide complete and accurate invoices.

How can CDA help?

CDA is one of the leading auditing and accounting firms in Dubai. It provides internal audit, payroll services, bookkeeping services, financial consultancy and many more services to its clientele with a personalized approach. It will help you to ensure that you comply with all the laws and regulations of VAT, also its professional team will help you to avoid the aforesaid administrative penalties. CDA never compromises with laws and regulations and it always follows the ethical way of providing services and also ensures whether their clients are also on the right track. With the help of the CDA team you can achieve your target without facing any hindrance in your path.