What does the UAE Federal VAT Law require for invoice content?
Effective: 2018-01-01 · Authority: FTA (Federal Tax Authority)
UAE Federal Decree-Law No. 8 of 2017 establishes VAT at 5 percent and defines mandatory invoice content for VAT-registered businesses. Required fields include supplier name and TRN, recipient name and address, invoice date and number, supply description, taxable amount, VAT rate, and VAT amount. Tax invoices must be issued within 14 days of supply.
What is the TRN and when is it required on UAE invoices?
The Tax Registration Number (TRN) is the UAE VAT registration identifier. It must appear on all tax invoices issued by VAT-registered suppliers. Buyers must also provide their TRN on purchase orders to enable suppliers to issue compliant tax invoices. The FTA's TRN verification tool allows businesses to validate counterparty TRNs.
Frequently Asked Questions
- What is the difference between a tax invoice and a simplified tax invoice in the UAE?
- A full tax invoice is required for supplies to other VAT-registered businesses. A simplified tax invoice can be issued for supplies to non-registered recipients or for supplies under AED 10,000. Simplified invoices require fewer fields but must still include TRN, date, description, and VAT amount.
- What is the penalty for issuing non-compliant invoices in the UAE?
- The UAE VAT regulations provide for penalties for issuing invoices that do not meet mandatory content requirements. Penalties are assessed by the FTA and can include fines per non-compliant invoice. Systematic non-compliance can trigger broader tax audits.
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