UAE VAT Invoice Format: Tax Invoice Template (2026)

A UAE tax invoice must show the words "Tax Invoice", your business name, address and TRN, a sequential invoice number, the date, a description of what you sold, the 5% VAT amount in AED and the total. Sales to unregistered customers, or of AED 10,000 or less, can usually use a shorter simplified tax invoice. Issue it within 14 days of the sale.

This guide lists every required field, shows a full and a simplified template, explains how to calculate UAE VAT both ways, and covers deadlines, credit notes and penalties.

Checked on 29 October 2026 against UAE tax adviser guidance based on the VAT law and its Executive Regulation, and the revised penalty table effective 14 April 2026. Confirm details on tax.gov.ae or with a registered tax agent. This is general information, not tax advice.

Who needs to issue a VAT tax invoice in the UAE?

Every VAT-registered business must issue a tax invoice for taxable sales (at 5% or 0%). If you're not VAT-registered, you must not show VAT or call your document a tax invoice. Not sure if you need to register? See VAT registration in the UAE for online sellers and shops.

What must a full UAE tax invoice include?

A full tax invoice must show:

The words "Tax Invoice", clearly shown
Your business name, address and TRN (Tax Registration Number)
Customer name and address, and the customer's TRN if they're VAT-registered
A unique, sequential invoice number
The date of issue, and the date of supply if different
A description of the goods or services
For each item: quantity, unit price, VAT rate and amount payable in AED
Any discount
The taxable amount, the VAT amount and the gross total, all in AED
Where relevant: the exchange rate used (if invoicing in another currency) or reverse charge wording

When you need a full invoice: when the customer is VAT-registered and the total including VAT is more than AED 10,000. Many businesses issue full invoices to all business customers anyway.

What is a simplified tax invoice?

A simplified tax invoice is a shorter version, typical for shop receipts and online orders to ordinary shoppers. It shows:

The words "Tax Invoice"
Your business name, address and TRN
Date of issue
Description of the goods or services
Total amount payable and the VAT charged

You can use a simplified tax invoice when:

The customer is not VAT-registered (most shoppers), or
The customer is VAT-registered and the total including VAT is AED 10,000 or less
Advisers expect that once your e-invoicing phase starts (1 July 2027 for most small businesses), invoices to VAT-registered business customers will need to be full e-invoices, whatever the amount. See UAE e-invoicing.

	Full tax invoice	Simplified tax invoice
"Tax Invoice"	Yes	Yes
Your name, address, TRN	Yes	Yes
Customer name, address, TRN	Yes	Not usually needed
Invoice number	Yes	Usually included in practice
Line-by-line quantity, unit price, VAT rate	Yes	Not required
VAT amount in AED	Yes	Yes
Typical use	B2B sales over AED 10,000	Shop receipts, online orders, B2C

UAE tax invoice template

Full tax invoice (example)

TAX INVOICE

Supplier:  Al Noor Fashion Trading LLC
           Shop 12, Al Karama, Dubai, UAE
           TRN: 100XXXXXXXXXXX3

Customer:  Bloom Boutique FZ-LLC
           Office 4, Business Bay, Dubai
           TRN: 100YYYYYYYYYYY3

Invoice no:      INV-2026-00148
Date of issue:   29 October 2026
Date of supply:  29 October 2026

Item	Qty	Unit price	Taxable	VAT 5%	Total
Linen abaya, black	40	120.00	4,800.00	240.00	5,040.00
Chiffon scarf	100	30.00	3,000.00	150.00	3,150.00
Delivery	1	50.00	50.00	2.50	52.50

Discount:                 AED     0.00
Taxable amount (ex VAT):  AED 7,850.00
VAT (5%):                 AED   392.50
Total payable (inc VAT):  AED 8,242.50

Payment terms: 30 days
Bank: [IBAN]

This customer is VAT-registered and the total is under AED 10,000, so a simplified invoice would also be allowed; many businesses still issue a full invoice to business customers.

Simplified tax invoice (online order or shop receipt)

TAX INVOICE

Al Noor Fashion Trading LLC
Shop 12, Al Karama, Dubai
TRN: 100XXXXXXXXXXX3
Invoice WEB-2026-03921
29 October 2026

Linen abaya (M) × 2    AED 378.00
Chiffon scarf × 1      AED  42.00
Delivery (Sharjah)     AED  15.00
---------------------------------
Total (inc VAT)        AED 435.00
VAT included (5%)      AED  20.71

You can copy these layouts into a spreadsheet or your billing software. The TRNs above are placeholders.

How do I calculate VAT in the UAE?

The UAE standard VAT rate is 5%.

Add VAT to a price (price excludes VAT)

VAT = price × 0.05
Total = price × 1.05

Remove VAT from a price (price includes VAT)

VAT = total × 5 ÷ 105 (the same as total ÷ 21)
Price before VAT = total ÷ 1.05

Worked examples:

You have	Calculation	VAT	Before VAT	Total
AED 100 before VAT	100 × 0.05	AED 5.00	AED 100.00	AED 105.00
AED 180 before VAT	180 × 0.05	AED 9.00	AED 180.00	AED 189.00
AED 210 including VAT	210 ÷ 21	AED 10.00	AED 200.00	AED 210.00
AED 435 including VAT	435 ÷ 21	AED 20.71	AED 414.29	AED 435.00
AED 1,000 including VAT	1,000 ÷ 21	AED 47.62	AED 952.38	AED 1,000.00

Common mistake: taking 5% of a VAT-inclusive price. 5% of AED 210 is AED 10.50, but the VAT inside AED 210 is only AED 10.00.

Round VAT to the nearest fils (two decimal places). To skip the sums, use the free UAE VAT calculator: it adds or removes 5% VAT instantly.

When must I issue a tax invoice?

Within 14 days of the date of supply (usually the day you deliver the goods or receive payment, whichever comes first). For online orders, many sellers issue the invoice automatically when the order is paid or delivered.

What currency and language can a UAE tax invoice use?

Currency: you can invoice in another currency, but the VAT amount must be shown in AED, converted at the Central Bank of the UAE exchange rate on the date of supply. Show the rate used.
Language: tax invoices are commonly issued in English, Arabic or both. The FTA may ask for an Arabic translation of documents, so bilingual invoices are a safe choice if you sell to Arabic-speaking customers.

What is a tax credit note?

A tax credit note is the document you issue when you reduce the VAT on an earlier sale, for example after a return, cancellation, post-sale discount or overcharge. It should show "Tax Credit Note", your name, address and TRN, the customer's name, address and TRN (if registered), the date, a reference to the original invoice, the reason, and the value and VAT being reduced in AED. Issue it within 14 days of the reduction and send it to the customer.

What are the penalties for invoice mistakes?

Under the revised penalty table that took effect on 14 April 2026, as reported by UAE tax advisers:

Violation	Penalty
Not issuing a tax invoice (or alternative document) on time	AED 2,500 per case
Not issuing a tax credit note on time	AED 2,500 per case
Not meeting the conditions for electronic tax invoices or credit notes	AED 2,500 per case

Separate penalties apply for late VAT registration, late returns and late payment. See VAT registration in the UAE.

Can I issue tax invoices electronically?

Yes. Electronic tax invoices (for example, PDF invoices emailed or receipts from a POS or online store) are allowed if they meet the FTA's conditions, such as being readable, stored securely and unaltered. Separately, UAE e-invoicing (structured invoices sent through accredited providers) becomes mandatory for invoices to other businesses from 2027. See UAE e-invoicing: what shops and online sellers need to know.

Common VAT invoice mistakes

Missing "Tax Invoice" or your TRN, which makes the invoice invalid for VAT
Charging VAT before you're registered, which isn't allowed
Gaps or repeats in invoice numbers: keep one sequence per series
Calculating 5% on a VAT-inclusive price, which overcharges VAT
Forgetting delivery fees: delivery you charge for is part of the sale and carries VAT
No invoice for WhatsApp, Instagram or COD orders: every taxable sale needs one, however it was ordered
Not issuing a credit note for returns, so your VAT return shows too much output tax

VAT invoices automatically with Nodi

Nodi issues UAE VAT tax invoices with your TRN and 5% VAT for every sale, whether it happens at the counter, in your online store or in a WhatsApp or Instagram chat, with sequential numbering and sales reports for your VAT return. UAE e-invoicing support is planned before July 2027. Plans start from AED 59 a month, and you can try the full Scale plan for 30 days for AED 3.

See Nodi POS · Start your AED 3 trial

Frequently asked questions

What is the format of a tax invoice in the UAE?

It must show "Tax Invoice", your name, address and TRN, the customer's details (for a full invoice), a sequential invoice number, the date, a description of the goods or services, quantities and prices, the 5% VAT amount in AED and the total.

What is the difference between a tax invoice and a simplified tax invoice in the UAE?

A full tax invoice includes the customer's details and line-by-line VAT. A simplified tax invoice leaves out the customer's details and can be used for unregistered customers, or registered customers when the total is AED 10,000 or less.

How do I calculate 5% VAT in the UAE?

To add VAT, multiply the price by 1.05. To find the VAT inside a VAT-inclusive price, divide it by 21 (or multiply by 5 and divide by 105).

How many days do I have to issue a tax invoice in the UAE?

14 days from the date of supply.

Can a business that isn't VAT-registered issue a tax invoice?

No. Only VAT-registered businesses can issue tax invoices and charge VAT.

What is the penalty for not issuing a tax invoice in the UAE?

AED 2,500 per case under the penalty table effective 14 April 2026, as reported by UAE tax advisers.

Does a UAE tax invoice need to be in Arabic?

English is commonly used. The FTA may ask for an Arabic translation, so bilingual invoices are a safe choice.

Sources

Virtuzone, Tax invoice format UAE, 10 June 2026 (required fields, simplified invoice rules, 14-day deadline, AED conversion, penalties from 14 April 2026)
Crowe UAE, Cabinet Decision No. 129 of 2025: amendments to administrative tax penalties
Federal Tax Authority, tax.gov.ae (VAT guides and Executive Regulation)
Meydan Free Zone, UAE tax invoice requirements (third-party)

UAE VAT Invoice Format: What a Tax Invoice Must Show (with Template)