Article 59 of Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No. (8) of 2017 on Value Added Tax (“Executive Regulations”) prescribes the requirements of a tax invoice and the circumstances in which one must be issued. FTA has issues clarification on Tax invoices vide circular No: VATP006
Tax invoice must be issued whenever a taxable supply is made. As per FTA guidelines, Tax invoice is of 2 types:
- Simple VAT invoice
- Detailed VAT invoice
It is to be ensured that whenever a taxable supply is being made, the tax invoice should be issued and delivered.
Content of Simple VAT Invoice:
- The word “TAX INVOICE” at a prominent place.
- Details of supplier. (Name, address, TRN)
- Date of issuance of invoice.
- Description of goods supplied.
- Total amount payable and total vat chargeable.
Content of detailed VAT invoice:
In addition to the content of a simple VAT invoice, detailed invoice
must also include the following:
- Details of recipient. (Name, address, TRN)
- Invoice number.
- Date of supply.
- Price per unit.
- Rate of tax charged.
- Discount, if any
- Gross value of invoice and VAT payable.
- Statements relating to Reverse charge, if any.