Blog

How to prepare VAT Invoices in the UAE

VAT will be implemented all over the UAE from 1st January 2018. Federal Tax Authority has provided latest information according to which you can learn how VAT invoices need to be maintained for every type of business in Emirates. Two types of invoices are required according to the FTA for VAT in the UAE. Submission of lesser amount will be required to maintain a simplified invoice of VAT, which implies on retail industry and supermarkets. However, if the business is generating more than specified amount, bookkeeper has to maintain a detailed invoice.

Simplified invoice of VAT for lesser amount supply is as under:

  • Tax invoice is required to be in a prominent place
  • Issuing date should be mentioned
  • TRN, address, and name of supplier should be stated
  • Brief description of services and goods should be marked
  • Total VAT chargeable and total amount payable should be there

For supplies more than the stated amount, VAT invoice should be as under:

  • Tax invoice is required to be in a prominent place
  • Issuing date should be mentioned
  • If the date of issue and date of supply is different, both should be mentioned
  • TRN, address, and name of supplier and recipient
  • Unique identifying number or a sequential should be assigned
  • Brief description of services and goods should be marked
  • Volume or quantity supplied, rate of tax, unit price, and amount payable in AED
  • Tax amount in AED
  • Gross value in AED
  • Discount offer values
  • Reverse charge statement if applicable

Based on the UAE Ministry of Fund, businesses will be asked to restructure their functions, financial management and book-keeping, technology, and individual resource mix, to be able to get ready for VAT.

Depending how frequent the procedure is, companies will require resources predicated on the complexity with their operations; considering that VAT isn’t just a finance concern but moves through all functional departments of the business.

Companies have to be conscious about not only their own readiness, but also that of suppliers and other exterior agencies. It is because the company can pay VAT and catch records wherever required to claim refunds.

Businesses will also have to consider revamping their IT systems and add VAT to invoices.

Hiring new personnel should be considered a clear and present factor as well to help UAE companies prepare for execution of the imminent move from the tax.

Well-planned change management and execution will be critical to a company’s success in employing VAT.

Other Interesting Blog Entries
Effects of VAT on Restaurants in the UAE

Value added taxes (VAT) are a utilization taxes that are recharged on each level to obtain goods and services. VAT does apply for restaurant

Online Registration Portal for Excise Tax & VAT in UAE

Federal Tax Authority working in the UAE has introduced Official Website for Tax. It also offers Excise Tax registration option. This will enable the