UAE Tax Invoice Requirements (Article 59): Full vs Simplified Invoices (AED 10,000 Limit)
Full Tax Invoice vs Simplified Tax Invoice in the UAE
Under Article 59 of Cabinet Decision No. 52 of 2017 (the Executive Regulations of the UAE Federal Decree-Law No. 8 of 2017 on Value Added Tax), VAT-registered businesses must issue a valid Tax Invoice within 14 calendar days of the date of supply (Article 67 of the VAT Decree-Law).
UAE law distinguishes two types of tax invoices:
| Feature | Full Tax Invoice — Art. 59(1) | Simplified Tax Invoice — Art. 59(5) |
|---|---|---|
| When Permitted | Mandatory for all B2B supplies above AED 10,000 | Allowed for B2C (unregistered buyer) OR B2B where total consideration is AED 10,000 or less |
| Required Heading | Clearly displayed "Tax Invoice" | Clearly displayed "Tax Invoice" |
| Supplier TRN | Mandatory 15-digit FTA TRN | Mandatory 15-digit FTA TRN |
| Recipient Details & TRN | Mandatory name, address, and 15-digit TRN (if registered) | Not required |
| Line-Item Breakdown | Unit price, quantity, net amount, VAT rate, and VAT payable in AED per line | Description, total consideration, and total VAT included |
| Reverse Charge Allowed? | Yes (with mandatory Art. 48 notice) | No — never allowed on Reverse Charge supplies |
The 12 Mandatory Particulars of a Full UAE Tax Invoice
Pursuant to Article 59(1) of the UAE VAT Executive Regulations, a full Tax Invoice must contain:
- The words "Tax Invoice" clearly displayed on the document.
- The name, address, and 15-digit Tax Registration Number (TRN) of the supplier.
- The name, address, and 15-digit TRN of the recipient (where the recipient is registered for UAE VAT).
- A sequential or unique Tax Invoice number enabling identification of the document and its order.
- The Date of Issue and the Date of Supply (if different from the date of issue).
- A clear description of the goods or services supplied.
- For each good or service: the unit price, the quantity or volume supplied, the rate of tax (e.g. 5% or 0%), and the amount payable expressed in AED.
- The amount of any discount offered.
- The gross amount payable expressed in AED.
- The Tax amount payable expressed in AED, together with the exchange rate applied where the invoice currency is not AED (Article 59(1)(j)).
- Where the Reverse Charge Mechanism applies under Article 48, an explicit statement that the recipient is required to account for the tax.
Foreign Currency Invoices (USD, EUR, GBP)
Many Dubai and Abu Dhabi companies invoice international and regional clients in USD or EUR. Under Article 59(1)(j), billing in a foreign currency is completely legal provided that the invoice displays:
- The total VAT payable converted into AED, and
- The exchange rate approved by the UAE Central Bank on the date of supply (for USD, the UAE Dirham is officially pegged at 1 USD = 3.6725 AED).