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Read more informationLEGAL UPDATE ON TAX INVOICE
Tax Invoice is a written or electronic archive in which the taxable person records complete details of taxable supplies made during the financial year. The Federal Law Number (8) of 2017 concerning the Value Added Tax (the VAT Law) sets down the necessary elements required for a Tax Invoice along with the Executive Regulation Number 52 of 2017 concerning regulations on VAT (the VAT Regulation). It is fundamental that all taxable activities issued under the VAT administration meet these prerequisites. If a Tax Invoice issued don't fit the required criteria, it could prompt an Administrative Penalty. Henceforth, organizations should take measures to guarantee that Tax Invoices issued under VAT are precise and complete.
Under the VAT law in UAE, a Tax Invoice is to be issued by all registrants for assessable supplies to other registrants, where the provisions surpass AED 10,000 (UAE Dirhams ten thousand).
There are two types of tax invoices; simplified VAT invoice and a detailed VAT invoice. The simplified VAT invoice is for supplies less than the specified amount. It issues when the clients are retail purchasers and don't have to give a VAT number. This kind of receipt is for supermarkets and retail industry. Detailed VAT invoice is for supply more than the predetermined sum. This sort of revenue is for wholesalers and merchants managing in higher amounts.
1) A simplified Tax Invoice must comprise of the following specifics:
2) A detailed tax invoice shall comprehend all of the following particulars:
Article 59 of the VAT Regulations provides a complete format of the Tax Invoice. The supplier can plan its tax invoice and organize in light the prerequisite, yet needs to guarantee that the tax invoice has all the data mentioned above.