What is a simplified tax invoice and when can I use it?

Article 59 – Tax invoices 32 1. A Tax Invoice shall contain all of the following particulars: a. The words “Tax Invoice” clearly displayed on the invoice. 32 Article amended as per Cabinet Decision No. 100 of 2024. Cabinet Decision No. 52 of 2017 and its amendments – Unofficial translation 49 b. The name, address, and Tax Registration Number of the Registrant making the supply. c. The name, address, and Tax Registration Number of the Recipient where he is a Registrant. d. A sequential Tax Invoice number or a unique number which enables identification of the Tax Invoice and the order of the Tax Invoice in any sequence of invoices. e. The date of issuing the Tax Invoice. f. The date of supply if different from the date the Tax Invoice was issued. g. A description of the Goods or Services supplied. h. For each Good or Service, the unit price, the quantity or volume supplied, the rate of Tax and the amount payable expressed in AED. i. The amount of any discount offered. j. The gross amount payable expressed in AED. k. The Tax amount charged under the provisions of the Decree-Law expressed in AED, together with the rate of exchange applied where the currency is converted from a currency other than the UAE dirham. l. Where the invoice relates to a supply under which the Recipient of Goods or Recipient of Services is required to account for Tax, a statement that the Recipient is required to account for Tax, and a reference to the relevant provision of the Decree-Law. 2. A simplified Tax Invoice shall contain all of the following particulars: a. The words “Tax Invoice” clearly displayed on the invoice. b. The name, address, and Tax Registration Number of the Registrant making the supply. c. The date of issuing the Tax Invoice. d. A description of the Goods or Services supplied. e. The total Consideration and the Tax amount charged expressed in AED. 3. If there are or will be sufficient records available to establish the particulars of a supply, a Registrant is not required to issue a Tax Invoice for the supply where the supply is a wholly zero-rated supply. 4. Where a Registrant is required to issue a Tax Invoice, the Tax Invoice must meet the requirements of Clause 1 of this Article. 5. As an exception to Clause 4 of this Article, and in cases other than where the reverse charge mechanism applies in accordance with Article 48 of the Decree-Law, the Registrant may issue a simplified Tax Invoice that meets the requirements of Clause 2 of this Article in either of the following two situations: Cabinet Decision No. 52 of 2017 and its amendments – Unofficial translation 50 a. Where the Recipient of Goods or Recipient of Services is not a Registrant. b. Where the Recipient of Goods or Recipient of Services is a Registrant and the Consideration for the supply does not exceed AED 10,000 (ten thousand dirhams). 6. A Registrant shall not issue separate Tax Invoices in respect of supplies where he makes more than one supply of Goods or Services to the same Person and those supplies are included on a summary Tax Invoice issued and delivered to the Recipient of Goods or Recipient of Services. 7. Where the Authority considers that there are or will be sufficient records available to establish the particulars of any supply or class of supplies, and that it would be impractical to require that a Tax Invoice be issued by the Registrant, the Authority may determine that, subject to any conditions that the Authority may consider necessary: a. Any of the particulars specified in Clauses 1 or 2 of this Article shall not be contained in a Tax Invoice. b. A Tax Invoice is not required to be issued or delivered in certain cases. 8. The Registrant may issue a Tax Invoice by electronic means provided that: a. the Registrant must be capable of securely storing a copy of the electronic Tax Invoice in compliance with the record keeping requirements. b. the authenticity of origin and integrity of content of the electronic Tax Invoice should be guaranteed. 9. Where a Recipient agrees to raise a Tax Invoice on behalf of a Registrant Supplier in respect of a supply of Goods or Services, that document shall be treated as if it had been issued by the supplier if the following conditions are met: a. The Recipient of the Goods or Services is a Registrant. b. The supplier and the Recipient agree in writing that the supplier shall not issue a Tax Invoice in respect of any supply to which this Clause applies. c. The Tax Invoice shall contain the particulars required under Clause 1 of this Article. d. The words “Tax Invoice raised by buyer” are clearly displayed on the Tax Invoice. 10. Where a Tax Invoice is issued pursuant to Clause 9 of this Article, any invoice issued by the Supplier in respect of that supply shall be deemed not to be a Tax Invoice. 11. Where an agent who is a Registrant makes a supply of Goods or Services for and on behalf of the principal of that agent, that agent may issue a Tax Invoice in relation to that supply as if that agent had made the supply, provided that the principal shall not issue a Tax Invoice, subject to: Cabinet Decision No. 52 of 2017 and its amendments – Unofficial translation 51 a. the agent retaining sufficient records in such a manner as to determine the name, address and Tax Registration Number of the principal supplier, and b. the principal supplier retaining sufficient records in such a manner as to determine the name, address and Tax Registration Number of the agent. 12. Where the Supply of Goods or Services is considered as supplied in an Implementing State, the Registrant must include the following additional particulars in the document issued: a. the tax registration number of the Recipient of Goods or Recipient of Services issued to him by the competent authority of the Implementing State in which the supply is treated as taking place, b. a statement identifying the supply as between a supplier in the State and a Recipient of Goods or Recipient of Services in an Implementing State, and c. any other information specified by the Authority. 13. For the purposes of Clause 2 of Article 67 of the Decree-Law, the Registrant shall issue the Tax Invoice within 14 (fourteen) days from the date of the supply provided for in Article 25 or 26 of the Decree-Law, except in the following cases: 1) where the Tax Invoice is issued in accordance with Clause 2 of this Article, the Registrant shall issue the Tax Invoice on the date of supply, 2) for the purposes of Clause 6 of this Article, the Registrant shall issue a summary of the Tax Invoice and deliver it to the Recipient of Goods or Recipient of Services within 14 (fourteen) days of the end of the calendar month within which the date of supply occurs for such supplies. 3) any other cases specified by the Authority. 14. Where the Authority grants approval under Clause 7 of this Article, such approval may be withdrawn at any time where the Authority considers that the conditions of approval are no longer met. 15. As an exception to Clause 5 of this Article, the Authority may specify the cases in which a Tax Invoice that meets the requirements of Clause 1 of this Article must be issued, even if one of the cases provided for in Clause 5 of this Article applies.

12.2.3. Timing for issuing tax invoices A tax invoice must be issued within 14 calendar days of the date of supply. For further information on the date of supply please refer to Chapter 8. The only exception to this rule is a summary tax invoice that may be issued by a taxable person. Where a taxable person makes more than one supply of goods or services to the same recipient during a month, the taxable person may issue a single tax invoice for these supplies in the same calendar month as the supplies took place. In these circumstances, the summary tax invoice will be treated as issued on time, even if it is issued more than 14 day from the date of supply of any supply covered by the tax invoice. 12.3. Key information on a tax invoice 12.3.1. Full and simplified tax invoices In order for a tax invoice to be valid it must contain the following particulars:             the words “Tax Invoice” clearly displayed on the invoice; the name, address, and TRN of the supplier; where the recipient of the supply is registered for VAT, the name, address, and TRN of the recipient; a sequential tax invoice number or a unique invoice number; the date of issuing the tax invoice; the date of supply (where different from date of issue of the tax invoice); a description of the goods or services supplied; for each good or service, the unit price, the quantity or volume supplied, the rate of VAT and the amount payable expressed in AED; the amount of any discount offered; the gross amount payable expressed in AED; the tax amount payable expressed in AED together with the rate of exchange applied; and where the invoice relates to a supply under which the recipient is required to account for VAT, a statement that the recipient is required to account for VAT, and a reference to the relevant provision of the Law. In addition to a ‘full’ tax invoice, in certain situations a person may issue a ‘simplified tax invoice’. A simplified tax invoice may be issued in the following two situations:   where the recipient is not registered for VAT; or where the recipient is registered for VAT and the consideration for the supply does not exceed AED 10,000. The information required to be stated on a simplified tax invoice is not as extensive as for the full invoice, and includes:   47 the words “Tax Invoice” clearly displayed on the invoice; the name, address, and TRN of the registered supplier; VAT Guide | Taxable Person | VATG001

Simplified Tax Invoice: A registrant may issue a simplified tax invoice in the following cases: 1 Where the recipient is not registered for VAT; or Where the recipient is registered for VAT but the consideration for the supply does not exceed AED 10,000. 2 Please note that ‘consideration’ is all that is received or expected to be received in return for the supply of Goods or Services, whether this is in money or other acceptable forms of payment. The simplified invoice must contain each of the following details: - The words “Tax Invoice” clearly displayed on the invoice. - Date of issuance of the tax invoice. - The name, address and TRN of the registered supplier. - Description of the goods or services supplied. - The total consideration and the VAT amount charged. 2 Submit your tax return on time The FTA usually allocates three-month tax periods (quarterly) to a registrant, however, it may specify shorter or longer tax periods for registrants, if it deems it necessary. A registrant is required to submit their tax return no later than the 28th day from the end of each tax period, or on the following working day if the corresponding date falls on an official holiday or a weekend. Examples of tax return periods: - Monthly (January, February, March, ... etc). - Quarterly (e.g. January – March, April – June, July – September, October – December)). - Quarterly (e.g. March – May, June – August, September – November, December – February). - Semi-annually (January – June and July –December) - Quarterly (e.g. February – April, May – July, August – October, November – January). In all cases, a registrant must file their VAT returns within the periods specified by the FTA, even if there are no taxes payable for the period in question. The VAT returns must be submitted through the e-services portal and must include: • The value of supplies subject to the standard tax rate made during the tax period and the imposed output tax, per Emirate. • Tax refunds provided to tourists under the Tax Refunds for Tourists Scheme, for retailers who provide tax refunds to tourists in the UAE under the official tourists refund scheme. • The value of supplies subject to the zero-rate provided during the tax period. • The value of provided supplies exempt from VAT during the tax period. • The value of supplies subject to Reverse Charge received during the tax period. • Goods imported into the UAE • The value of purchases and expenses incurred during the tax period if you are seeking to claim the input tax, and the refundable tax value. • Any supplies which were subject to the reverse charge for which you would like to recover input tax.