Tally Solutions | Updated on: August 23, 2023
Tax invoice is a very important document to be issued and received by registrants under VAT in UAE. It is essential for suppliers to issue complete and VAT compliant invoices to customers, ensuring that the mandatory details required in a Tax invoice as per the VAT law are present in the invoice.
Similarly, when registered persons purchase goods or services, they should ensure that the invoices received contain the details required to be eligible for input tax recovery. Following is a checklist of all the factors to be kept in mind for issue of a complete and compliant tax invoice under VAT in Saudi Arabia. This can be used by registered suppliers as well as recipients of supply as a checklist for a VAT compliant invoice.
| Mandatory details required | |||
| 1 | Date of issue of invoice | ||
| 2 | A sequential invoice number which uniquely identifies the tax invoice | ||
| 3 | The Tax Identification Number of the supplier | ||
| 4 | Name and address of the supplier and the customer | ||
| 5 | Quantity and nature of the goods supplied or the scope and nature of the services supplied | ||
| 6 | The taxable amount per rate or exemption | ||
| 7 | The unit price exclusive of VAT | ||
| 8 | Discounts or rebates, if any, if they are not included in the unit prices | ||
| 9 | The rate of tax applied | ||
| 10 | The amount of tax payable, shown in Riyals | ||
| Case-specific details required | |
| 1 | If the date on which the supply took place is different from the date of issue of the tax invoice, the date of supply should be specified |
| 2 | In case tax is not charged at the basic rate, a narration explaining the tax treatment applied to the supply should be given |
| 3 | In cases where the customer is required to self-account for tax on the supply, the customer’s Tax Identification Number and a statement that the customer must account for the tax, should be given |
| 4 | In case the supply is of used goods, a reference to the fact that VAT is charged on the profit margin on the supply should be given and the invoice should not show the amount of tax charged |
| Time limit to issue tax invoice VAT invoice should be issued latest by 15th of the month following the month in which the supply took place | |
| Language of invoice VAT invoice should be in Arabic, in addition to any other language as a translation |
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