Tax Invoice under VAT in UAE

A Tax Invoice is mandatory for all registrants providing taxable supplies to other registrants when the consideration for the supplies exceeds AED 10,000.

A registrant must issue a Tax Invoice when making a taxable supply of goods or services, as it is a crucial document under VAT in the UAE. A Tax Invoice is mandatory for all registrants providing taxable supplies to other registrants when the consideration for the supplies exceeds AED 10,000. Therefore, companies should meet two conditions to issue a Tax Invoice:

  • It is necessary to register the recipient.
  • The price of the supplies should be higher than AED 10,000.

Format For Tax Invoices

A sample format of a tax invoice is provided below. It also involves the mandatory information that must be included in one.

Note: When the Tax Invoice relates to a supply for which the recipient is liable to pay tax, it should include a statement that the receiver must account for tax under Article 48 of the VAT Law.

Most UAE businesses, except retail firms, handle supplies that require them to provide tax invoices.
The VAT regime mandates that all registrants issuing invoices adhere to these standards. Because the VAT statute outlines the necessary elements that any Tax Invoice must include. Failure to have the required information on tax invoices may result in the imposition of an administrative penalty. In this regard, it would benefit all businesses to use software that automatically selects the information needed for a tax invoice. It will alert the user if the tax invoice needs to add any required information. Afterward, the software would quickly generate tax invoices. In the end, most importantly, it will keep track of all the information a tax invoice must include.


Suppliers must appropriately provide Tax Invoices for the benefit of the recipient of the supply. The recipient’s right to an input tax deduction for the supply is based on the Tax Invoice. Businesses should take the necessary steps to ensure that Tax Invoices issued under VAT are correct and complete.

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