An original tax invoice is issued by a UAE business that makes taxable deliveries and is delivered to the recipient of goods or services who is subject to UAE VAT Law. Under UAE VAT rules, all registrants must provide a Tax Invoice for assessable supply to other registrants where the provisions exceed AED 10,000. The requirements for the tax invoice are set out in Federal Law Number (8) of 2017 on VAT, as well as Executive Regulation Numbers 46 of 2020 and 52 of 2017, and taxable firms are required to follow the regulations while producing the tax invoice.
Failure to follow the VAT Law while sending the Tax Invoice may result in administrative penalties, however, the top VAT experts in the UAE can provide experienced advice on the TAX Invoice requirements. Here’s an overview of the Tax Invoice and the legal requirements for VAT registrants:
The Tax Invoice is defined in Article 1 of the VAT Decree-Law No. (8) of 2017 as a written or electronic document in which the occurrence of a Taxable Supply is recorded along with relevant facts. According to UAE VAT Law, the Tax Invoice might be a written or electronic document. According to Article 65 of the VAT Law, registrants who make taxable supplies must issue and send the original Tax Invoice to the recipients of goods and services.
In addition, the registrant who makes a considered supply must issue an original Tax Invoice and give it to a Recipient of Goods or Recipient of Services if one is available or preserve it in his records if one is not available. Businesses can get further information from licensed tax agents in Dubai about the conditions and requirements for tax invoices.
According to Article 59 (1) of the VAT Law’s Executive Regulations, taxable firms must include the following information on their invoices to comply with VAT obligations in the UAE:
When the supply is less than the specified amount and the Recipient of Goods or Recipient of Services is not a Registrant, a simplified tax invoice is produced, as per Article 59 (5) of Executive Regulation Number 46 of 2020 and 52 of 2017. When the clients are retail buyers who do not need to furnish a VAT number, such invoices are typically provided. In the UAE, supermarkets, and enterprises in the retail industry typically send simplified tax invoices.
According to the VAT Law, VAT registrants must comply with the conditions of a tax invoice. If taxable persons do to comply with the invoicing, they may face stiff penalties from the Federal Tax Authority (FTA). Taxable firms can avoid penalties by forming a partnership with the top tax agents in Dubai right once. According to article 25 (o) of Federal Law No. (7) of 2017 on Tax Procedures, the following are the principal consequences that taxable businesses face if they fail to comply with UAE VAT legislation.
Failure to comply with the tax invoice requirements under VAT in the UAE will result in severe penalties, necessitating the hiring of top VAT consultants in Dubai, like Alya Auditors.
We are well-known in the business community for offering specialist tax services such as UAE VAT registration, VAT deregistration, VAT compliance / VAT Return, excise tax services, and VAT reconsideration services, among others. Through a trained staff of VAT specialists and licensed tax agents in Dubai, UAE, we ensure that businesses receive effective services. Businesses can ensure compliance with our effective VAT services in Dubai, UAE.