Related Invoice & Business Tools
Free UAE VAT Invoice Generator — FTA Compliant, Federal Decree-Law No. 8/2017 & 16/2025
Auto-switches between Full Tax Invoice (B2B / >AED 10,000) and Simplified (B2C / ≤AED 10,000) with correct mandatory fields for each.
Real-time format check for both supplier and buyer TRN — 15 digits as issued by FTA. Missing or incorrect TRN = non-compliant invoice.
Per-line VAT at 5%, 0% (zero-rated), or Exempt. AED equivalent shown automatically for foreign currency invoices using CBUAE exchange rate.
AED, USD, EUR, GBP, SAR. FTA requires VAT amount in AED regardless of invoice currency — automatically calculated.
RCM field for imported services — flags that recipient accounts for VAT, not supplier. Common for foreign software, consulting, cloud services.
A4 invoice with all FTA mandatory fields, UAE green theme, amount in words (AED), IBAN, 14-day issuance note, e-invoicing compliance disclaimer.
UAE VAT Invoice Mandatory Fields — Full Tax Invoice vs Simplified
| Field | Full Tax Invoice (B2B / >AED 10,000) | Simplified Tax Invoice (B2C / ≤AED 10,000) |
|---|---|---|
| Heading | "TAX INVOICE" — mandatory label | "TAX INVOICE" — same requirement |
| Supplier Name, Address, TRN | Mandatory | Mandatory |
| Invoice Number | Sequential, unique | Sequential, unique |
| Invoice Date | Mandatory | Mandatory |
| Date of Supply | If different from invoice date | If different from invoice date |
| Buyer Name, Address, TRN | Mandatory (buyer must be VAT-registered) | NOT required (B2C) |
| Description of Goods/Services | Specific per line | General description acceptable |
| Unit Price (excl. VAT) | Mandatory per line | NOT required (total amount sufficient) |
| Quantity & Unit | Mandatory per line | NOT required |
| Discount (if any) | Must be shown | Must be shown if applicable |
| Taxable Amount per line | Mandatory | Total consideration sufficient |
| VAT Rate per line | Mandatory | Mandatory |
| VAT Amount (in AED) | Mandatory — always in AED even if invoice in foreign currency | Mandatory — in AED |
| Total Amount (incl. VAT) | Mandatory | Mandatory |
| Exchange Rate | Required if non-AED — use CBUAE rate on supply date | Required if non-AED |
| Reverse Charge Note | Required if RCM applies | Required if RCM applies |
UAE VAT Rates — FTA 2025/2026
| Rate | Applies To | Input VAT Recovery |
|---|---|---|
| 5% (Standard) | Most goods and services — electronics, furniture, professional services, retail, F&B, telecoms, entertainment, software, construction | Yes — input VAT fully recoverable |
| 0% (Zero-rated) | Exports of goods and services outside UAE/GCC; international transport; healthcare (most medical services & essential medicines); education (nursery/pre-school); first sale of residential property; crude oil & natural gas | Yes — input VAT fully recoverable even at 0% |
| Exempt | Selected financial services; local passenger transport; bare land; residential property (subsequent supply); life insurance | No — input VAT NOT recoverable |
Frequently Asked Questions — UAE VAT Invoicing
The UAE standard VAT rate is 5%, one of the lowest globally. VAT was introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. Zero-rated supplies (0% VAT, input VAT still recoverable) include exports, international transport, most healthcare, pre-school education, and crude oil. Exempt supplies (no VAT, no input VAT recovery) include certain financial services, bare land, and residential property resale. The FTA administers VAT through the EmaraTax portal (emaratax.gov.ae). The 5% rate remains unchanged under Federal Decree-Law No. 16 of 2025.
TRN (Tax Registration Number) is a 15-digit number issued by the FTA upon VAT registration. It must appear on every tax invoice. Format: 15 consecutive digits, e.g. 100123456700003 (last 3 digits typically 003 for standard VAT accounts). Mandatory VAT registration threshold: AED 375,000 annual taxable turnover. Voluntary registration: AED 187,500. You can verify any supplier's TRN free on the FTA portal: tax.gov.ae/en/taxregcheck.aspx. Invoices with missing or invalid TRNs are non-compliant and cannot be used by buyers to claim input VAT.
Full Tax Invoice (Standard): Required for B2B supplies over AED 10,000. Must include buyer name, address, TRN, quantity, unit price, taxable amount per line, VAT per line. Buyer uses this to claim input VAT. Simplified Tax Invoice: Used for B2C supplies or any supply at or below AED 10,000. Buyer details not required. Unit prices and quantities not mandatory. Only the total consideration and VAT amount need to be shown. From July 2026, e-invoicing will be mandatory for B2B transactions — simplified invoices will not be available for many businesses once e-invoicing is live.
Under UAE VAT law, tax invoices must be issued within 14 days of the date of supply (goods delivered or services completed). This 14-day rule was explicitly clarified in the 2024 amendments to the Executive Regulations. Invoices may be issued in Arabic only, or in a bilingual format (Arabic + another language) — the FTA can request Arabic translations. Issuing an invoice in a foreign currency is permitted, but VAT must always be stated in AED using the UAE Central Bank (CBUAE) exchange rate on the date of supply.
The Reverse Charge Mechanism (RCM) in UAE applies when a UAE-registered business receives services from a non-UAE supplier (e.g. foreign software subscriptions, overseas consulting, cloud services). Instead of the foreign supplier charging VAT, the UAE recipient must self-assess 5% VAT and pay it directly to the FTA through their VAT return. The UAE business can also claim the VAT back as input tax if the service relates to taxable supplies. From 2025, RCM also applies to certain precious metals and stones traded in the UAE. Select "Yes — Recipient accounts for VAT" in the Reverse Charge field above.
UAE e-invoicing is mandatory for B2B transactions starting with a pilot in July 2026, rolling out to phased mandatory adoption based on taxpayer size. E-invoices must use structured formats (XML/JSON), contain unique invoice reference numbers, QR codes, and digital signatures. Businesses must integrate with an FTA Accredited Service Provider (ASP). B2C e-invoicing will follow in later phases. This tool generates a compliant draft PDF — for formal e-invoicing submission, register with an FTA ASP and connect to the centralized Electronic Invoicing System.
Under Cabinet Decision No. 52 of 2023, the FTA imposes AED 2,500 per invoice for the first offence of issuing a non-compliant invoice, and AED 5,000 for repeat violations. In 2024, the FTA conducted 93,000 field inspection visits (135% increase year-on-year) and recovered AED 348 million in taxes and fines — invoice compliance is a primary focus. Common violations: missing TRN, wrong VAT rate, not showing VAT in AED for foreign currency invoices, invoice number not sequential, not issuing within 14 days of supply.