Definition

A Tax Invoice is the official invoice format required in the UAE for VAT-registered businesses. It must contain specific details set by the Federal Tax Authority to be valid for VAT claims.

Key points

• Mandatory fields: “Tax Invoice” title, TRN, invoice number, date, supplier and customer details, description, VAT rate, VAT amount, and totals.
• Two formats: Full tax invoice (for B2B sales above AED 10,000) and simplified tax invoice (for smaller B2C sales).
• Must be kept for at least 5 years.

Practical example

A Dubai IT firm issues an invoice to a corporate client with all VAT details clearly shown, allowing the client to reclaim input VAT.

Why it matters

A compliant tax invoice is essential for businesses to collect VAT legally and for customers to recover input VAT.