Vat Tax Invoice

All about VAT Invoices in the UAE

With the introduction of VAT, the Federal Tax Authority (FTA) is implementing VAT Invoices. Two types of invoices are being introduced – regular and simplified. Before we take a look at what information should be displayed on each of them, let’s first consider what a VAT Invoice is:

  • Written document which records the details of a taxable supply made
  • Can only be issued by a VAT registered business
  • Invoice must be issued within 14 calendar days of the date of supply
  • Need to be kept for at least 5 years

The issuance of a valid tax invoice may dictate the time of supply, and therefore determine in which tax period the output tax should be accounted for. A VAT registered business must issue a tax invoice to the recipient of a domestic taxable supply of goods and services. In certain conditions, the customer may be able to issue a “self-billed” tax invoice on behalf of the supplier. The receipt of a valid tax invoice is the primary documentary evidence to support the recovery of VAT incurred by the purchaser. Continue reading →