Key takeaways
- VAT-registered suppliers must issue a tax invoice for taxable supplies, generally within 14 days of the date of supply.
- A full tax invoice shows "Tax Invoice", both parties’ details and TRNs, a sequential number, dates, item details, the VAT rate and amount, and the VAT in AED.
- A simplified tax invoice is allowed when the customer is not VAT-registered, or is registered and the amount is AED 10,000 or less.
- E-invoicing becomes mandatory for B2B and B2G invoices: from 1 January 2027 for businesses with revenue of AED 50 million or more, and 1 July 2027 for everyone else.
On this page
General information based on the UAE VAT legislation and Ministry of Finance announcements up to October 2026. It is not tax advice. Check the Federal Tax Authority's current guidance or ask a registered tax agent for your situation.
Who must issue a tax invoice?
Any business registered for VAT in the UAE must issue a tax invoice when it makes a taxable supply (standard-rated at 5% or zero-rated), and for certain deemed supplies. The invoice is normally due within 14 days of the date of supply. If you are not VAT-registered, you must not issue a "tax invoice" or charge VAT; a normal commercial invoice is used instead.
Full tax invoice checklist
Under the VAT Executive Regulation, a full tax invoice must include:
| Item | Notes |
|---|---|
| The words "Tax Invoice" | Clearly displayed on the document |
| Supplier's name, address and TRN | Tax Registration Number from the FTA |
| Recipient's name, address and TRN | TRN where the customer is VAT-registered |
| A sequential invoice number | Unique, so each invoice can be identified |
| Date of issue, and date of supply if different | |
| Description of the goods or services | Clear enough to identify what was supplied |
| Unit price, quantity, rate of tax and amount payable | For each good or service, in AED or the invoice currency |
| Any discount offered | |
| Gross amount payable | In AED |
| Tax amount payable in AED | Plus the exchange rate used if invoiced in another currency |
| Reverse charge statement | Where the recipient must account for the VAT |
When is a simplified tax invoice enough?
A simplified tax invoice can be issued when the recipient is not registered for VAT, or when the recipient is registered and the consideration is AED 10,000 or less. It shows "Tax Invoice", the supplier's name, address and TRN, the date, a description, and the total consideration and tax charged. A VAT-registered customer who wants to recover input tax on a larger purchase needs a full tax invoice.
Invoicing in a foreign currency
You may invoice in US dollars, euros or another currency, but the VAT amount must also be shown in AED, converted at the UAE Central Bank exchange rate applicable on the date of supply. Keep a note of the rate you used.
E-invoicing: what changes in 2026 and 2027
Ministerial Decisions No. 243 and 244 of 2025 introduce a national Electronic Invoicing System based on the Peppol framework. In-scope businesses must exchange structured electronic invoices through a government-accredited service provider rather than sending PDFs:
- From 1 July 2026: pilot programme, and voluntary adoption for any business.
- Businesses with annual revenue of AED 50 million or more: appoint a provider by 31 July 2026; mandatory from 1 January 2027.
- All other businesses: appoint a provider by 31 March 2027; mandatory from 1 July 2027.
- Government entities: mandatory from 1 October 2027.
The mandate covers business-to-business and business-to-government transactions; business-to-consumer sales are outside the e-invoicing system at launch. Some exclusions apply, and further decisions may adjust details, so watch the Ministry of Finance and FTA announcements.
Practical tips
- Use one numbering sequence (for example INV-2026-0001) and never reuse numbers.
- Calculate VAT consistently per line or per invoice, rounded to the fils. The VAT calculator helps with adding or removing 5%.
- Keep invoices and records for at least five years (longer for some real-estate records).
- Until e-invoicing applies to you, the invoice generator creates a PDF with all the fields above. It runs in your browser, so client and pricing details are not uploaded.
Sources
Fact-checked against the sources above. We test every tool we mention. Editorial policy.
