Revision Passcard

1. PASSCARD
© 2020 Skillmount and Bintern Portal
Chapter 13
Tax Invoice
Skill Diploma in Taxation & VAT - UAE
Course accredited by JAIN Deemed to be University

2. When must a tax invoice be issued?
A tax invoice is a written paper or electronic document which records the
details of a taxable supply which has been made.
A VAT registered person must issue a tax invoice (also known as “VAT
invoice”) and deliver it to the recipient when it makes a taxable supply of
goods or services.
No Tax invoice to be issued for a supply of ‘exempted category
goods/service
Tax Invoice
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TAXATION&
VAT- UAE

3. Who must issue a tax invoice?
A tax invoice must normally be issued, or arranged to be issued, by a
supplier of goods or services.
However, in certain situations a tax invoice may either not be required or
may be issued by another person.
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Tax Invoice TAXATION&
VAT- UAE

4. Buyer-created tax invoices
In certain commercial situations, it may be easier for a recipient of goods or
services to identify the particulars of what has been supplied, and
therefore to issue a tax invoice.
For example, where scrap metal is sold to a scrapyard, the details of the
supply (e.g. the quality and value of scrap metal) might not be known until
the scrap is received and valued at the scrapyard. In these situations, the
supplier and the recipient may agree that the recipient will issue the tax
invoice instead of the supplier.
A buyer-created tax invoice may be issued where:
• The recipient is registered for VAT; and
• The supplier and the recipient agree in writing that the supplier will not
issue a
• Tax invoice in respect of any supply to the recipient.
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Tax Invoice TAXATION&
VAT- UAE

5. Invoices issued by agents
Where a VAT-registered agent makes a supply of goods or
services on behalf of the principal supplier of those goods
or services, the agent may issue a tax invoice in relation to
that supply with the particulars of the agent (such as
name, address and TRN) – as if that agent had made the
supply of goods or services itself.
The invoice should, however, contain a reference to the
principal supplier (including the supplier’s name and TRN)
somewhere on the invoice.
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Tax Invoice TAXATION&
VAT- UAE

6. Timing for issuing tax invoices
A tax invoice must be issued within 14
calendar days of the date of supply.
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Tax Invoice TAXATION&
VAT- UAE

7. Key information on a Tax invoice
Full 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.
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Tax Invoice TAXATION&
VAT- UAE

8. Key information on a Tax invoice
simple 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 registered supplier
• The date of issuing the tax invoice;
• A description of the goods or services supplied; and
• The total consideration and the VAT amount charged.
© 2020 Skillmount and Bintern Portal
Tax Invoice TAXATION&
VAT- UAE

9. Key information on a Tax invoice
Invoices in a foreign currency
• The currency stated on a tax invoice must be the UAE
Dirham.
• In the event that a supply is made in a currency other
that the UAE Dirham, the amount must be converted
into and stated in UAE Dirham on the tax invoice. The
invoice may still contain information regarding prices in
the original currency.
• When converting the foreign currency into the UAE
Dirham, the exchange rate used must be a rate
approved by the UAE Central Bank.
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Tax Invoice TAXATION&
VAT- UAE

10. Key information on a Tax invoice
Rounding rules
Where the invoice amount is a fraction of a fils,
the amount should be rounded to the nearest
fils (that is, to two decimal places) on a
mathematical basis, being:
– Rounded up if the fraction is a half or more; and
– Rounded down if the fraction is less than a half.
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Tax Invoice TAXATION&
VAT- UAE

11. © 2020 Skillmount and Bintern Portal
Tax Invoice TAXATION&
VAT- UAE

12. Key requirements of a tax credit note
In order for a tax credit note to be valid, it must reflect the error in the original tax
invoice. Therefore, a credit note should contain the following:
• The words “Tax Credit Note”;
• The name, address, and TRN of the supplier;
• Where the recipient is registered for VAT, their name, address, and TRN;
• The date of issuing the tax credit note;
• The value of the supply shown on the tax invoice, the correct amount of the
value of the supply, the difference between those two amounts, and the VAT
charged that relates to that difference in AED;
• A brief explanation of the circumstances giving rise to the adjustment; and
• Information sufficient to identify the supply to which the adjustment relates.
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Tax Invoice TAXATION&
VAT- UAE

13. © 2020 Skillmount and Bintern Portal
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