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 →