VAT in the UAE at a glance
VAT was introduced in the UAE on 1 January 2018 at a standard rate of 5%. Businesses must register once their taxable supplies pass AED 375,000 in 12 months, and may register voluntarily from AED 187,500. Registered businesses charge VAT, file returns with the Federal Tax Authority (FTA) and keep proper records.
What a tax invoice should show
In general, a full tax invoice includes:
- the words "Tax Invoice"
- your name, address and Tax Registration Number (TRN)
- the customer's name, address and TRN where applicable
- a unique, sequential invoice number and the date
- a description, quantity and price for each item
- the VAT rate and amount, shown in AED
- the total amount payable
Simplified invoices
For smaller consumer sales, a simplified tax invoice with fewer details can be used, which is why shop and restaurant receipts look shorter than a B2B invoice. The exact rules and limits are set by the FTA, so check the current guidance for your sales.
Credit notes and corrections
If you refund a customer or correct an invoice, issue a credit note that refers to the original instead of editing the old document. Good software links the two automatically.
Keep your records
VAT records generally need to be kept for at least five years, and longer for certain real estate records. Searchable digital storage makes audits far less stressful than boxes of paper.
This guide is general information and not tax advice, so confirm details with the FTA or a tax adviser. BillMate POS and billing produces VAT-ready invoices and receipts and VAT return reports so the numbers are ready when you file. Next, read about UAE e-invoicing.
See BillMate POS & Billing in action
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