25.09.2018

The United Arab Emirates: VAT Update

Update regarding VAT invoicing and guidance in The UAE

UAE VAT Update

There's been a number of updates regarding VAT regulations within the United Arab Emirates in the last year. The UAE introduced a VAT regime back in 2017, along with Saudi Arabia. Other regions in The Gulf have been following their footsteps.

The tax authority (FTA) as published a new Publis Clarification (VATP006) - Tax Invoices, clarifying the application of Article 59 of the Executive Regulations. The Clarification explains the following requirements:

  • A taxable supply is made: a tax invoice must be issued and delivered to the recipient.
  • Simplified tax invoices are issued: there is no requirement to show the net value of line items.
  • Full tax invoices are issued: line items have to show the tax value and net value, it is not mandatory to show the gross value.
  • Tax invoices issued in a foreign currency: these must show the tax amount converted to AED and the exchange rate used for the conversion.
  • Rounding on tax invoices: this should be performed on a line item basis to the nearest Fils.

They have also updated the 'VAT User Guide - May 2018' and 'Tax Groups User Guide-July 2018'. The updated guidance includes important information on how to assign a new e-mail ID for accessing a taxable person's online account and de-activating an existing ID.

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