A UAE tax invoice must contain the words ‘Tax Invoice’, your TRN, customer’s TRN if VAT-registered, supply description, VAT amount, and total. Simplified invoices (under AED 10,000) can omit some fields. Issuing a non-compliant invoice = AED 5,000 penalty per occurrence.
Full tax invoice — mandatory fields
- The words ‘Tax Invoice’ clearly visible
- Sequential invoice number (no gaps)
- Date of issue and date of supply (if different)
- Supplier’s name, address, TRN
- Recipient’s name, address, TRN (if VAT-registered)
- Description of goods or services
- Quantity, unit price, total before VAT
- Discount if any
- VAT rate applied (5%, 0%, or exempt) per line
- VAT amount in AED
- Total payable inc VAT in AED
Simplified tax invoice (under AED 10,000)
For B2C sales below AED 10,000, you can issue a simplified invoice with fewer fields:
- The words ‘Tax Invoice’
- Supplier’s name, address, TRN
- Date
- Description of goods/services
- Total inc VAT
- VAT amount or rate
Most retail receipts (POS-printed at checkout) are simplified invoices. For B2B above AED 10K you must issue a full invoice on request.
Multi-currency invoices
You can issue invoices in foreign currencies (USD, EUR, etc.), but VAT amount must always also be shown in AED at the FTA-published exchange rate on the supply date:
- Show currency rate clearly on the invoice
- FTA accepts spot rate or daily reference rate
- Stick to one method consistently — switching causes audit queries
E-invoicing — the 2026 direction
UAE is moving towards mandatory e-invoicing similar to KSA’s ZATCA. As of 2026:
- Public consultations published; phased rollout expected 2026-2027
- Format likely to be PEPPOL-based XML
- Real-time validation through FTA portal
- Most major accounting tools (Zoho, QuickBooks, Xero) preparing integrations
Penalties for non-compliant invoices
| Issue | Penalty | Per |
|---|---|---|
| Failure to issue tax invoice | AED 5,000 | Per occurrence |
| Issuing wrong format | AED 2,500 | Per invoice |
| Failure to keep records | AED 10,000 | First time |
| Repeat record keeping | AED 50,000 | Each repeat |
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Word + Google Docs format with all mandatory fields. Customisable to your branding. Free.
Frequently asked questions
Is the word 'Tax Invoice' really mandatory?+
Yes. FTA explicitly requires it. Invoices headed simply ‘Invoice’ are non-compliant and trigger AED 5,000 penalties.
Can I issue invoices in USD?+
Yes, but VAT amount must also appear in AED using the exchange rate on the supply date.
Do I need the customer's TRN?+
Required if the customer is VAT-registered (B2B). Optional for B2C. Most companies require it on every B2B invoice for input VAT recovery.
How long do I keep tax invoices?+
5 years from the end of the tax period. FTA can audit up to 5 years back.
What about credit notes?+
Credit notes follow the same format as tax invoices but marked ‘Tax Credit Note’. Used for returns, reductions, errors.
Is e-invoicing mandatory?+
Not yet, but UAE is rolling it out 2026-2027. Start using a system that supports it (Zoho, QuickBooks Online) to be future-ready.