How to Issue a Valid Tax Invoice Under UAE VAT Law

What is a Tax Invoice?

A tax invoice is an official document issued by a VAT-registered business that records a taxable supply of goods or services.
It’s a legal requirement under UAE VAT law and is essential for:

• Claiming input VAT
• Complying with FTA audit requirements
• Avoiding penalties

Types of VAT Invoices in UAE

The FTA allows two main formats:

1. Full Tax Invoice

• Used for supplies over AED 10,000
• Contains all mandatory fields listed by the FTA

2. Simplified Tax Invoice

• Used for supplies under AED 10,000
• Can be issued to retail customers and does not require buyer details

Mandatory Details for a Full Tax Invoice (FTA Requirements)

A VAT-compliant invoice must include:

1. “Tax Invoice” clearly stated at the top
2. Supplier’s name, address, and TRN (Tax Registration Number)
3. Customer’s name, address, and TRN (if registered)
4. Invoice date and supply date (if different)
5. Unique invoice number
6. Description of goods or services supplied
7. Quantity of goods or extent of services
8. Unit price, amount excluding VAT, and VAT rate applied
9. VAT amount payable in AED
10. Total amount including VAT in AED
11. For zero-rated/exempt items, clear indication of VAT status
12. Exchange rate if the invoice is in foreign currency (as per UAE Central Bank)

Mandatory Details for a Simplified Tax Invoice

1. “Tax Invoice” heading
2. Supplier’s name, address, and TRN
3. Invoice date
4. Description of goods/services supplied
5. Total amount payable (including VAT)
6. VAT amount in AED

Common Mistakes That Make an Invoice Non-Compliant

• Missing TRN
• Not mentioning VAT rate and amount separately
• Using a proforma invoice as a tax invoice
• Incorrect currency conversion
• No serial/unique invoice number
• Failing to state “Tax Invoice” clearly

Most Searched VAT Invoice FAQs (2026)

Q: Can I issue invoices in USD or EUR?
A: Yes, but VAT amount must be shown in AED with the correct exchange rate.

Q: Can I email tax invoices to clients?
A: Yes, electronic invoices are allowed if they meet FTA requirements.

Q: Can a freelancer issue a tax invoice?
A: Yes, if registered for VAT and holding a valid TRN.

Q: Can I issue a tax invoice without TRN?
A: No, issuing VAT invoices without a TRN is illegal.

Conclusion

A VAT-compliant tax invoice is critical for legal compliance, customer trust, and VAT reclaim eligibility. Missing even one required field can lead to FTA rejections and penalties.

Need Help Creating VAT-Compliant Invoices?

At Think Biz Management Consultancies, we help you:

• Create FTA-approved invoice templates
• Automate invoicing with accounting software
• Train your staff on VAT invoice compliance
• Correct existing invoice issues to avoid penalties
• Manage VAT filing with accurate documentation

Contact us today for a free consultation.
We’ll ensure your invoices are 100% compliant and audit-ready.