What every invoice must show
- A tax invoice with the words Tax Invoice, the supplier's TRN, the date of supply, the rate and the VAT amount in AED.
- Simplified tax invoices are allowed for supplies under AED 10,000 to non-registered customers.
Numbering, keeping and correcting invoices
Each full tax invoice carries a sequential number, or another unique number that shows its place in the sequence (Executive Regulation, Article 59(1)(d)). Amounts are stated in AED. For a foreign-currency sale, the VAT amount is shown in AED with the exchange rate used, and the conversion follows the Central Bank rate on the date of supply (VAT Law, Article 69).
A correction is made with a tax credit note, headed "Tax Credit Note", showing the original value, the corrected value, the difference and the tax on it in AED, a short reason, and details that identify the original supply (Article 60).
Records are kept for five years after the tax period, plus four more years while a dispute or tax audit is open (Cabinet Decision No. 74 of 2023, Article 3). Copies are acceptable if identical to the originals and readable on request (Article 4). The FTA may accept English records but can ask for an Arabic translation (Article 5).
Penalties under Cabinet Decision No. 40 of 2017 as amended: AED 2,500 for each detected failure to issue a tax invoice or credit note, and AED 10,000 (AED 20,000 if repeated within 24 months) for failing to keep required records.
Electronic invoicing in the United Arab Emirates
Mandatory B2B and B2G e-invoicing runs on a Peppol five-corner model through FTA-accredited service providers. In the first phase, businesses with annual revenue above AED 50 million had to appoint an accredited provider by 30 October 2026 (extended from 31 July) and go live on 1 January 2027. Later phases follow during 2027; confirm your phase with the FTA.