UAE VAT Update (Sep-18)

UAE Federal Tax authority (FTA) has published a new public clarification (VAT Public clarification – VATP006), which provides requirements for when a tax invoice must be issued, and the particulars that must be included.

Highlights of the FTA clarification:

1. Whenever a taxable supply is made, a tax invoice must be issued and delivered to the recipient. It is mandatory to provide an invoice to the customer in all cases where a standard rated supply is made. It is not acceptable only to offer to print the invoice on request of the customer. It must be provided in all circumstances to the recipient of supply.

2. For a simplified tax invoice, there is no requirement to show the net value (the value before tax) for each line item.

3. A full tax invoice must show the tax value and net value (value before tax) for each line item, however the gross value (the total value including tax) does not have to be shown for each line item.

4. Where a tax invoice is issued in a currency other than AED, it must show the tax amount converted to AED and the exchange rate used for conversion (as per UAE central bank published rates).

5. Where the tax chargeable on the supply is calculated as a fraction of fils, the value must be rounded to the nearest fils (i.e. to 2 decimal places) on a line item basis.

If you would like to discuss any VAT matters and VAT services in Dubai & UAE, please drop us an email at info@premier-brains.com or call us at + 971 4 3542959.

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