VAT Invoice Compliance Checklist

The 12 Mandatory Components of a Standard Tax Invoice

Under **Article 59(1)** of the VAT Executive Regulations, a standard Tax Invoice (mandatory for transactions exceeding AED 10,000 or when supplying to registered businesses) must contain all 12 of the following elements:

1. 1 Title: The words **"Tax Invoice"** must be clearly and prominently displayed on the document.
2. 2 Supplier Identity: The full legal name, physical address, and Tax Registration Number (TRN) of the supplier.
3. 3 Recipient Identity: The full legal name, physical address, and TRN of the recipient (mandatory if the recipient is a registered business).
4. 4 Invoice Number: A sequential, unique Tax Invoice identification number based on a consistent serialization system.
5. 5 Date of Issue: The exact date on which the Tax Invoice is prepared and issued.
6. 6 Date of Supply: The date of supply if it differs from the issue date (e.g., date of delivery or payment receipt).
7. 7 Item Description: Detailed description of the goods delivered or services rendered.
8. 8 Pricing Breakdown: The unit price, supplied quantity, VAT rate applied (5%, 0% or Exempt), and taxable amount per item in AED.
9. 9 Discounts: Any discounts or rebates applied per item, showing the net taxable amount.
10. 10 Gross Value: The gross amount payable on the invoice in AED.
11. 11 VAT Charged: The total VAT amount charged on the invoice, shown clearly in AED.
12. 12 Exchange Rates: If the invoice is issued in a foreign currency, you must specify the exchange rate used (using the official daily exchange rates published by the UAE Central Bank).

Simplified Tax Invoice Guidelines

Under **Article 59(5)**, a supplier can issue a Simplified Tax Invoice in either of these two scenarios:

• Non-Registered Recipient: The supply is made to a customer who is not registered for UAE VAT (retail sales, B2C transactions).
• Low Value B2B: The supply is made to a registered business, but the total gross consideration for the transaction does not exceed AED 10,000.
• Simplified invoices require fewer details (no recipient TRN or itemized VAT calculations needed, though the gross value and total VAT charged must still be present).

Invoicing Timelines & Penalties

The UAE Tax Procedures Law enforces strict deadlines for invoice preparation and distribution:

• 14-Day Rule: A registered taxable person must issue a Tax Invoice within 14 days from the date of the supply.
• Late Issuance Penalties: Failure to issue a Tax Invoice or a Tax Credit Note within the required timeline can trigger an administrative penalty of AED 2,500 per occurrence.
• Non-Compliant Layout Penalties: Failure to display mandatory information (such as TRN or prices in AED) can result in a penalty of AED 2,500 for each non-compliant invoice template.