Difference between Normal Invoice and Tax Invoice in Uae

Difference between Normal Invoice and Tax Invoice in Uae

In the United Arab Emirates (UAE), a normal invoice is a document that a business issues to its customers for the sale of goods or services. A normal invoice typically includes the name and address of the business, the date of the invoice, a unique invoice number, and the description, quantity, and price of the goods or services being sold.

A tax invoice, on the other hand, is a document that a registered business issues to its customers for taxable supplies of goods or services. In addition to the information included in a normal invoice, a tax invoice must also include the value of the taxable supply in AED, the applicable VAT rate, the VAT amount, and the total amount payable, including VAT.

The main difference between a normal invoice and a tax invoice is that a tax invoice includes VAT-specific information and is used for taxable supplies, while a normal invoice does not include VAT-specific information and is used for non-taxable supplies.

Normal Invoice

Date: 01/01/2022 Invoice No.: 123456

Supplier: ABC Company Address: 123 Main Street, Dubai, UAE

Customer: XYZ Company Address: 456 Main Street, Dubai, UAE

Description Quantity Price (AED) Total (AED)
Goods 1 500 500
Services 1 1,000 1,000

Total: 1,500

Tax Invoice

Date: 01/01/2022 Invoice No.: 123456

Supplier: ABC Company Tax Registration No.: 123456 Address: 123 Main Street, Dubai, UAE

Customer: XYZ Company Tax Registration No.: 987654 Address: 456 Main Street, Dubai, UAE

Description Quantity Unit Price (AED) Value (AED) VAT Rate VAT Amount (AED) Total (AED)
Goods 1 500 500 5% 25 525
Services 1 1,000 1,000 5% 50 1,050

Total: 1,575

Please note that these are just examples and the details and amounts may vary depending on the specific circumstances of the transaction.