FTA Pubic Clarification Regarding Tax Invoices

Relevant Section of law: Article 59 of Cabinet Decision No. 52 of 2017: Tax Invoices

Summary:

In all cases where taxable supply is made it is mandatory to issue tax invoice. There are two type of tax invoices acceptable. (i) Normal Tax Invoice (ii) Simplified Tax Invoice.

The comparison between the two types of tax invoices is mentioned below for the purpose of understanding:

 

 

Normal Tax Invoice

 

Simplified Tax Invoice

 

 

Issued in case of Taxable Supply

 

 

Issued in case of Taxable Supply

 

Can be issued to both registered and unregistered recipients

 

 

Can only be issued in case the recipient of Goods is not registered for VAT

 

 

Can be issued for any amount

 

 

Can only be issued if recipient is unregistered and the consideration for supply is less the AED 10,000

 

 

Requirement to show net value of taxable supply i.e. Amount excluding VAT for each line item

 

 

No Requirement to show net value of taxable supply i.e. Amount excluding tax for each line item

 

Requirement to show net value (Amount excluding tax), tax value (Vat amount) there is no requirement to show gross amount for line items (Amount including VAT)

 

 

Simplified tax invoice values are always shown at gross amount i.e. amount including VAT

 

Requirement to convert invoices issued in foreign currency to AED and mention exchange rate used for conversion

 

 

Requirement to convert invoices issued in foreign currency to AED and mention exchange rate used for conversion

 

 

Rounding shall be performed on line item basis

 

 

Rounding shall be performed on the gross value of supplies

 

Format for Simplified Tax Invoice:

 

Tax Invoice
 

Name of Supplier:

 

 

Address of Supplier:

 

Tax Registration Number of Supplier:

 

 

Date of Invoice:

 

Description of Goods

 

 

Amount (AED)

 

Apple

 

 

10.00

 

Bananas

 

 

15.00

 

Milk

 

 

10.50

 

Total

 

 

35.50

 

VAT

 

1.69

 

 Format for Normal Tax Invoice:

 

Tax Invoice
 

Name of Supplier:

 

 

Address of Supplier:

 

Tax Registration Number of Supplier:

 

 

Date of Invoice:

 

 

Name of Customer:

 

 

 

Tax Registration Number of Customer:

 

Payment Terms:

 

Date of Supply:

 

 
 

Description of Goods

 

 

Unit Price (AED)

 

 

Quantity

 

Amount Excl VAT (AED)

 

 

VAT Rate

 

 

VAT Amount (AED)

 

Apple

 

 

10.00

 

1

 

10.00

 

5%

 

0.5

 

Bananas

 

 

20.00

 

1

 

20.00

 

5%

 

1.00

 

Milk

 

 

40.00

 

1

 

40.00

 

5%

 

2.00

 

 

Total

 

 

70.00

 

3.50

 

Gross Amount including VAT (AED)

 

 

73.50

 

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