Tax Invoice Format in UAE Explained for 2025

Understanding tax invoice format in UAE is essential for every VAT registered business. A compliant invoice anchors input claims and supports audits, which helps avoid penalties under updated Article 59 rules and new e invoicing plans.

This guide explains mandatory fields, simplified versus full invoices, timing rules and layout points for Excel or ERP templates.

It also highlights the latest changes that prepare businesses for structured e invoices planned for the 2026 rollout so finance teams stay organised and audit ready.

Why Tax Invoice Format Matters In UAE VAT

Under Federal Decree Law No. 8 of 2017 and its Executive Regulation, a tax invoice is the core document that proves a taxable supply and supports VAT recovery.

Article 59 sets specific content for tax invoices and simplified tax invoices. Recent amendments inserted a rule that invoices must be issued within 14 days of the date of supply, except for defined exceptions.

Failure to issue compliant invoices or keep proper records can trigger administrative penalties that range from 20,000 AED or even higher when combined with wider VAT breaches.

For finance teams, this means invoice layout is not a design choice. It is a regulatory requirement linked to refunds, audits and even reputation with suppliers and customers.

Mandatory Fields on a Standard Tax Invoice in UAE

For supplies between registrants or amounts above the simplified threshold, Article 59 requires a full tax invoice with:

• The words “Tax Invoice” clearly displayed.
• Supplier name, address and Tax Registration Number.
• Recipient name, address and TRN when the recipient is registered.
• A unique sequential invoice number.
• Date of issue and date of supply if different.
• Description of goods or services, quantity and unit price excluding VAT.
• Consideration, discounts, VAT rate and VAT amount for each line or total.
• Total amount payable in AED and, if foreign currency appears, the rate used.
• Statement for reverse charge transactions that the recipient must account for tax.

Simplified Tax Invoices In 2025

The Executive Regulation still permits simplified invoices for lower value supplies or supplies to non registered customers, when consideration does not exceed AED 10,000.

A simplified tax invoice has fewer fields. It must show the words “Tax Invoice”, supplier name and address and TRN, date of issue, description of goods or services, total consideration and VAT amount charged.

For 2025, these formats remain valid, yet e invoicing reforms will gradually restrict use when businesses enter the electronic system scope. 

Advisory alerts on Cabinet Decision amendments already highlight that simplified invoices will not be available for many taxpayers once e invoicing goes live in 2026.

Businesses should therefore keep simplified formats but design them so they can convert smoothly to full invoice layouts once required.

Timelines and Language Tips

The 2024 changes to the Executive Regulation added an explicit 14 day deadline to issue tax invoices after the date of supply, apart from listed special cases.

Invoices can be issued in Arabic or in both Arabic and another language. The FTA can request Arabic translations of any document, so bilingual formats are widely used across Dubai and other emirates.

Where consideration is in foreign currency, VAT must still appear in dirhams, using Central Bank rates on the date of supply or another approved method.

How To Design a Practical Format for Tax Invoice in UAE​?

For day to day work, finance teams usually embed legal rules inside a simple layout:

• Header block with logo, “Tax Invoice” label, supplier details and TRN plus recipient details and TRN.
• Body table with line descriptions, quantities, unit prices, discounts and VAT rate columns that auto calculate VAT and line totals.
• Footer section with totals excluding VAT, VAT amount, grand total in AED and payment terms.
• Space for notes such as reverse charge wording, currency conversion details, or references to framework agreements.

Important Advice: In tax invoice excel format in UAE, protect formula cells and restrict data entry cells so staff cannot overwrite VAT calculations. In ERP systems, lock tax codes and format once tested.

Preparing For E Invoicing and 2026 Changes

Federal Decree Law No. 16 of 2024 and later Cabinet decisions formally recognise electronic invoices and set the stage for a national e invoicing system.

Public updates indicate that a centralised Electronic Invoicing System will start with a pilot in July 2026 and move to phased mandatory adoption based on taxpayer size and sector.

Key design points for e invoices include structured formats, unique invoice reference numbers, QR codes, secure signatures and real time or near real time reporting to the FTA.

Businesses that already standardise paper or PDF formats in 2025 will find the migration easier, since the same data elements feed both their VAT returns and the future electronic gateway.

Common Errors Linked To Tax Invoice Format in UAE

Common VAT audit findings in the UAE include missing TRNs, incorrect tax rates, invoices without “Tax Invoice” wording, simplified invoices issued above the threshold and mismatched totals between lines and grand totals.

Failure to issue invoices at all or repeated content errors can lead to penalties, which recent summaries show at levels between 20,000 AED as per violation for some cases, besides wider penalty exposure for related return errors. Therefore, ensuring the format of tax invoice under VAT in UAE is important.

A periodic internal review of sample invoices against Article 59 requirements, plus clear written procedures for staff, can significantly reduce these risks.

How Arnifi Helps Ensue a Clean Tax Invoice Format In UAE?

Arnifi assists UAE businesses that want compliant, efficient invoice formats embedded in their accounting or ERP systems. We begin with a review of existing templates against Article 59 and the latest FTA guides, including bilingual content, currency rules and timing requirements.

Once gaps are identified, Arnifi designs standard invoice formats for full and simplified supplies, configures tax codes and rounding logic, and prepares documentation so staff understand each field. 

Where clients plan e invoicing adoption, Arnifi aligns layouts with the structured data elements expected under the new system, so the same template works for both printed invoices and electronic reporting. Hire the best accounting and bookkeeping services in UAE from Arnifi to ensure a risk-free invoice format.

FAQs

Who must issue a tax invoice in UAE VAT?

Any VAT registered supplier must issue compliant tax invoices for taxable supplies to registrants and for most higher value supplies to consumers.

When must a tax invoice be issued after supply?

Current Executive Regulation amendments require issue within 14 calendar days, apart from specific exceptions.

Can a tax invoice be only in English?

English content is common, but the FTA can request Arabic versions, so bilingual layouts are safer.

Is a simplified invoice acceptable for all small sales?

No. It is restricted to non registered customers and supplies not exceeding AED 10,000. Above that, a full tax invoice is needed.

Are Excel tax invoice templates allowed in UAE?

Yes, if content matches Article 59 rules and records are stored securely in line with Tax Procedures Law requirements.