On 9 September 2018, the Federal Tax Authority issued a Public Clarification on the requirements for the issuance of value added tax (VAT) invoices as required by article 59 of the Executive Regulations, which was issued pursuant to the VAT Decree-Law.
The Public Clarification specifies that:
- a VAT invoice must be issued and delivered to the recipient of a taxable supply in all cases. This includes supplies that meet the conditions for which a simplified VAT invoice is to be issued;
- where simplified VAT invoices are issued regarding the supply of multiple items, the net value (i.e. the amount excluding the VAT) does not need to be indicated for each invoice item;
- each line item must show the VAT amount and net value where full VAT invoices are issued (the gross value is not mandatory on the invoice);
- VAT invoices issued in a foreign currency must show the VAT amount converted to AED and the exchange rate used for the conversion; and
- rounding off VAT invoices must be performed on a line item basis to the nearest Fils (i.e. two decimal places).