Definition

A Simplified Tax Invoice is a shortened version of a tax invoice permitted under UAE VAT law for sales to non-registered customers or when the total value of a transaction is below the threshold set by the Federal Tax Authority (FTA). It contains fewer details than a full tax invoice but still meets all legal requirements for VAT reporting.

Key points

• Used mainly for retail or B2C transactions.
• The total consideration (including VAT) must not exceed AED 10,000.
• Must clearly state the words “Simplified Tax Invoice”.
• Must include supplier name, TRN, invoice date, total amount (including VAT), and VAT amount.
• Can be issued electronically or on paper but must be stored for five years.

Practical example

A café issues a bill of AED 105 (AED 100 + 5 VAT) to a walk-in customer. Instead of preparing a full VAT invoice, it issues a simplified tax invoice showing its TRN, date, and VAT amount.

Why it matters

Simplified tax invoices make VAT compliance easier for businesses with high-volume, low-value sales while maintaining FTA reporting accuracy.