Simplified tax invoice: what it means in UAE tax.
The meaning of simplified tax invoice under UAE VAT law: how it works, a worked example in AED, common mistakes and the legal references.
A simplified tax invoice is a shorter UAE VAT invoice allowed for sales to unregistered customers, or to registrants where the value is AED 10,000 or less.
What simplified tax invoice means
A simplified tax invoice is a shorter version of the tax invoice. It must still show the words "Tax Invoice", the supplier's name, address and tax registration number, the date of issue, a description of what was supplied, and the total consideration and VAT charged in dirhams. It does not need the customer's details, unit prices or a line by line breakdown.
A registrant may use it in two situations: where the customer is not registered for VAT, or where the customer is registered and the consideration does not exceed AED 10,000. It cannot be used where the reverse charge applies.
For retailers, cafés, salons and other businesses with many small sales, the simplified invoice keeps till receipts compliant without extra detail. It differs from the full invoice in timing too: a simplified invoice must be issued on the date of supply, not within 14 days.
How it works
- Use it for customers who are not VAT registered, whatever the value.
- Use it for VAT registered customers only where the consideration does not exceed AED 10,000.
- Issue it on the date of supply; the 14 day window for full tax invoices does not apply.
- The FTA can specify cases where a full tax invoice is required even if a simplified one would otherwise be allowed.
- Where a business issues electronic invoices under the electronic invoicing system, the simplified invoice rules do not apply.
Worked example
A furniture showroom in Ajman sells a dining set to a registered restaurant and hands over a till receipt at the counter.
| Dining set before VAT | AED 8,000 |
| VAT at 5% | AED 400 |
| Total paid by the restaurant | AED 8,400 |
The value is under AED 10,000, so a simplified tax invoice issued on the day is enough for this registered customer.
Common mistakes
- Issuing simplified invoices to registered customers for sales above AED 10,000.
- Using a simplified invoice for a supply where the customer must account for VAT under the reverse charge.
- Leaving the supplier's tax registration number off the till receipt.
The law
- Cabinet Decision No. 52 of 2017 (Executive Regulation of the VAT law), Article 59, Clauses 2, 5, 13(a), 15 and 16
- Federal Decree-Law No. 8 of 2017 on Value Added Tax, Article 65, Clause 3 and Article 67
Frequently asked questions
Can a registered customer claim input tax on a simplified tax invoice?
A simplified tax invoice is a form of tax invoice, so it can support a claim where the other conditions for deducting input tax are met. Make sure the supplier's tax registration number is shown.
Is the AED 10,000 limit before or after VAT?
The regulation refers to the consideration for the supply. If you are near the limit, issue a full tax invoice to avoid doubt.
Related terms
Tax invoice · Tax credit note · Input tax · Tax registration number. See every term in the UAE tax glossary.
For the full picture, read our guide: Bookkeeping for restaurants and cafés in Dubai: what to track every month.
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