VAT Invoice Format
UAE
VAT invoice
format UAE is an extremely important task for all the businesses registered
under VAT. A tax Invoice is an important document to be issued by a registrant
when a taxable supply of goods or services is made.
All the
businesses must follow the VAT invoice format issued by the FTA to avoid VAT
fines and penalties in UAE. How to prepare a tax invoice in UAE is a very
critical question and task for all businesses.
VAT-registered
business making a taxable supply shall issue an original tax invoice and
deliver it to the recipient of the supply. This requirement applies without
exception for any supplies subject to VAT at 5%, therefore in the event a
taxable supply is made it is a requirement that a tax invoice is both issued
and delivered to the recipient.
FTA Tax Invoice
Format UAE
Businesses
must follow the FTA Tax Invoice Format UAE. A VAT invoice must have a Tax
Registration Number (TRN). There are two types of tax invoices:
Simplified tax
invoice
Full tax
invoice
Simplified
Tax Invoice
In a
simplified tax invoice, line items will be shown at the gross value.
The required
contents of a simplified tax invoice will be as follows:
·
The words “Tax Invoice” are clearly displayed on the
invoice.
·
The name, address, and Tax Registration Number (TRN) of
the supplier.
·
The date of issuing the tax invoice.
·
A description of the goods or services supplied.
·
The total consideration and the tax amount charged.
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.
For
example:
Apples 10.00
Bananas 15.00
Milk 10.50
Total 35.50
VAT 1.69
Full Tax Invoice
In full tax
invoice, line items will be shown at the net value.
The required
contents of a full tax invoice will be as follows:
·
Name, address, and TRN of the recipient.
·
A unique invoice number must be sequential
·
Date of Supply, if it is different from the date of
issue.
·
Price per unit, the supplied quantity/volume, rate of
tax, and the payable amount in AED.
·
Discount, if applicable.
·
The payable Net value of the Invoice in AED.
·
Payable Tax Amount in AED.
A further
requirement of a full tax invoice is to show the total gross amount payable
expressed in AED. As a full tax invoice includes several line items, each shall
have the net amount payable (excluding the tax) as well as the tax due. The FTA
accepts that a full tax invoice does not need to include gross amounts (i.e.
inclusive of tax) for each line item, as the total gross amount payable for the
invoice shall be stated.
Tax Invoices Issued
in Foreign Currencies
The required
contents of a tax invoice issued in foreign currencies will be as follows:
·
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).
Rounding on Tax
Invoices
Where a tax
invoice is required to be issued and the tax chargeable on the supply is
calculated as a fraction of a Fils, the value may be rounded to the nearest
Fils on a mathematical basis.
Given that
the tax amount should be calculated on a line by line basis on a full tax
invoice as mentioned above, in practice this means that such rounding, if
performed, should also be undertaken on a line by line basis.
By rounding
the value on a mathematical basis, it is meant that the 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
VAT on Discounted
Invoices
VAT will be
charged on the value which is arrived after considering the discount. VAT will
be charged on the prices after giving the discount.
The discount
will be allowed to be reduced from the value of supply only if the following
conditions which are prescribed in UAE VAT Executive regulations are met:
·
The customer has benefited from the reduction in price.
·
The supplier funded the discount.
For example,
the value of supply is AED 10,000 and discount is AED 500. In this case, the
value of supply will be AED 9,500 which is arrived after considering the
discount value. VAT will be charged on AED 9,500.
GoTrack will
take care of all the concerns related to VAT and provide you advises in light
of latest changes in VAT rules and regulation. Let GoTrack help you while
dealing with your tax matters, Contact us.
