FTA Public Clarification: VATP006-Tax-Invoices

Application of the Article 59 of the Executive Regulations: Tax Invoices

There are a number of circumstances in which businesses have sought clarity over the application of the Tax Invoice Requirements.

Most important highlight in this public clarification is stating that, whether Taxable Person is issuing Full Tax Invoice or Simplified Tax Invoice, the same should be issued and delivered to the recipient.
Further, this public clarification can be divided into 4 parts:
1) Full Tax Invoice Requirements
2) Simplified Tax Invoice Requirements
3) Tax Invoices issued in Foreign Currency
4) Rounding off of Tax Invoice Values

1) Full Tax Invoice Requirements

  • Line items have to show the tax value and net value, it is not mandatory to show the gross value, as the total gross amount payable for the invoice shall be stated.

2) Simplified Tax Invoice Requirements

  • Line items have to be shown at the gross value.
  • There is no requirement for line items to be shown on the tax invoice at a net value. At the bottom of the simplified tax invoice, the total consideration is shown (i.e. the total gross value), with a separate line showing the tax included within that value.

ABC Co

TRN:xxxxxxxxxxxxxx
Date: xxxxxxx
Invoice No. xxxx

Tax Invoice

Particulars Amount
Apples 10.00
Bananas 15.00
Milk 10.50
Total 35.50
Vat 1.69

3) Tax Invoice issued in Foreign Currency

  • Tax invoice should show the total gross amount payable expressed in AED.
  • The tax amount payable expressed in AED
  • The Exchange rate applied (as per the exchange rates published by the UAE Central Bank on the date of supply)

4) Rounding off of Tax Invoice Values

  • Tax value stated on the tax invoice should be rounded to the nearest whole Fils (i.e. to 2 decimal places) by applying mathematical logic

For example:

2.357 AED would become 2.36
9.862 AED would become 9.86