The UAE is the fifth largest market in the world for global retail. Many businesses in the UAE provide goods and services exclusively or primarily to recipients who are not subject to VAT.
Examples: supermarkets, retail stores, restaurants, etc. There are also a number of companies that provide goods and services primarily to registered persons, and in some cases to persons who are not registered for VAT in the UAE.
In such cases, is such a business required to issue a detailed tax invoice for such supplies, including all the mandatory information required for a tax invoice? If you’re a business dealing with customers, it can be difficult to provide all the details required on your VAT invoice, such as recipient addresses. At the same time, it is most important to issue an invoice to show that the delivery has been completed.
To resolve this dilemma, the VAT Act provides for the possibility of issuing a “simple tax invoice” when a person subject to VAT supplies goods to a person who is not subject to her VAT. I am. I. Recipients are both private customers and businesses whose turnover does not exceed the VAT registration threshold. For more information on her VAT registration requirements in the UAE, please see our VAT Registration Blog.
Let’s take an example to understand how a registrant can issue her simple tax invoice with VAT.
Example: Jehan & Co., a registered company in Abu Dhabi, supplies Mr. Ali, a consumer in Dubai, with his two keyboards. The simple tax invoices issued by Jehan & Co. are as follows:
As you can see, the simplified tax bill requires less information than the tax bill. The main advantage of a simple tax invoice is that it does not require the recipient’s name and address. This is very useful for businesses that deal with consumers regularly or for unregistered businesses. These businesses can now easily set up the software they use to create and quickly process invoices.
Finally, let’s answer some frequently asked questions from companies regarding simple invoices.
You can also register for VAT Registration on our website: