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 |
Get our free FTA-compliant invoice template
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.