FTA’s Clarification on VAT invoices

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Feb, 2020

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.

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