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:
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Normal Tax Invoice |
Simplified Tax Invoice
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Issued in case of Taxable Supply
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Issued in case of Taxable Supply |
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Can be issued to both registered and unregistered recipients
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Can only be issued in case the recipient of Goods is not registered for VAT
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Can be issued for any amount
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Can only be issued if recipient is unregistered and the consideration for supply is less the AED 10,000
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Requirement to show net value of taxable supply i.e. Amount excluding VAT for each line item
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No Requirement to show net value of taxable supply i.e. Amount excluding tax for each line item |
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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)
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Simplified tax invoice values are always shown at gross amount i.e. amount including VAT |
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Requirement to convert invoices issued in foreign currency to AED and mention exchange rate used for conversion
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Requirement to convert invoices issued in foreign currency to AED and mention exchange rate used for conversion
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Rounding shall be performed on line item basis
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Rounding shall be performed on the gross value of supplies |
Format for Simplified Tax Invoice:
| Tax Invoice | |
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Name of Supplier:
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Address of Supplier: |
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Tax Registration Number of Supplier:
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Date of Invoice: |
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Description of Goods
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Amount (AED) |
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Apple
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10.00 |
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Bananas
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15.00 |
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Milk
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10.50 |
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Total
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35.50 |
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VAT
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1.69 |
Format for Normal Tax Invoice:
| Tax Invoice | |||||
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Name of Supplier:
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Address of Supplier: |
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Tax Registration Number of Supplier:
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Date of Invoice: |
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Name of Customer:
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Tax Registration Number of Customer: |
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Payment Terms: |
Date of Supply:
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Description of Goods
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Unit Price (AED) |
Quantity |
Amount Excl VAT (AED) |
VAT Rate |
VAT Amount (AED) |
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Apple
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10.00 |
1 |
10.00 |
5% |
0.5 |
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Bananas
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20.00 |
1 |
20.00 |
5% |
1.00 |
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Milk
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40.00 |
1 |
40.00 |
5% |
2.00
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Total
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70.00 |
3.50 |
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Gross Amount including VAT (AED)
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73.50 |
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