The Federal Tax Authority (FTA) and the Ministry of Finance (MoF) in the UAE have thoroughly outlined the requirements for implementing e-invoicing. Businesses must ensure compliance for seamless invoice issuance and transmission to the buyer. Every e-invoice generated through the e-invoicing framework includes a set of fields organised into numerous categories. The supplier must compulsorily fill the mandatory fields in an e-invoice in accordance with the directive to avoid e-invoice rejection by the system. The other fields are optional.
Mandatory fields of an e-invoice
Per the UAE e-invoicing regulations, a standard electronic tax invoice contains 51 mandatory fields, while a commercial e-invoice contains 49. Here is a breakdown of all the mandatory fields in an electronic invoice and their meanings.
Invoice details
The invoice details category contains unique identifiers that set an invoice apart from other electronically generated invoices.
- Invoice number: A unique ID generated for every invoice for easy distinction and identification.
- Invoice date: The issue date of the invoice.
- Invoice type code: Every e-invoice falls under a distinct category based on its function.
- Invoice currency code: The currency used for the invoice amounts, excluding the total tax amount.
- Invoice transaction type code: This invoice identification code depends on the transaction type. These can include: Free Trade Zone, Supply through e-commerce, Deemed Supply, Continuous Supply, Margin Scheme, Disclosed Agent Billing, Exports, and Summary Invoice.
- Payment due date: The date by which payment is due.
- Business process type: It has a predefined value which specifies the business process context of the transaction. It enables easy invoice processing and is available only in e-invoices.
- Specification identifier: A predefined value that signifies the specification of the data conformity rules, such as those for the business, cardinalities, and semantic content.
- Payment means type code: The code denotes the details of the payment to be made or the settlement.
Seller details
The supplier or seller is the entity generating the e-invoice using the e-invoicing system. The seller details contain information about the supplier.
- Seller name: The full registered name of the seller as per the national registry. This registry may be related to the traders, legal entities, or taxable people.
- Seller electronic address: This is the same as the Tax Identification Number (TIN) and refers to the seller’s address where the invoice’s application-level response will be sent.
- Seller electronic identifier: The seller identification. For instance, all UAE-registered businesses will have a value of 0235.
- Seller legal registration identifier: The official registrar will issue this seller identifier.
- Seller legal registration identifier type: The identifier must be any of the following: PAS for Passport, TL for Commercial or Trade License, CD for Cabinet Decision, and EID for Emirates ID.
- Seller tax identifier: Also called the Seller Tax Identification Number. The tax-registered sellers need to provide their Tax Registration Number (TRN) in this field.
- Seller tax scheme code: Enter the VAT’s default value in this field.
- Seller address line 1: Enter the primary address line.
- Seller city: The specific city according to the seller’s business registration address.
- Seller country subdivision: The county, province, state, etc., of the seller’s registered business address.
- Seller country code: The seller’s country code. For example, the UAE’s code is AE.
Buyer details
The buyer is the entity receiving the e-invoice from the supplier. The buyer details contain all the distinct details of the e-invoice receiver.
- Buyer name: The full buyer’s name according to the registration details.
- Buyer's electronic address: The buyer’s full address where the invoice will be sent.
- Buyer electronic identifier: The buyer’s identifier.
- Buyer tax identifier: Also called the Buyer Tax Identification Number. Tax-registered buyers must provide their TRN in this field.
- Buyer tax scheme code: Enter the VAT default value.
- Buyer address line 1: Add the buyer's first address line.
- Buyer city: The location of the buyer as per the registration details.
- Buyer country subdivision: The state, province, and region of the buyer’s registered location.
- Buyer country code: The country identification code of the buyer’s address.
Document totals
The document totals signify the transaction amount and the pending payment amount, and the summary thereof, with and without tax.
- Sum of invoice line net amount: The sum of the invoice’s net amounts.
- Invoice total amount without tax: The total invoice amount, excluding tax.
- Invoice total tax amount: The sum of the invoice’s tax amount.
- Invoice total amount with tax: The invoice’s total amount, including tax.
- Amount due for payment: The outstanding amount expected to be paid by the buyer.
Tax breakdown
The e-invoice's tax breakdown category includes all details of the taxes applied and their significance, as per the tax category.
- Tax category taxable amount: The tax category rate (if applicable) and the total of taxable amounts as per the tax category code.
- Tax category tax amount: The total tax amount for the tax category.
- Tax category code: The code applicable to the invoice’s specific tax category.
- Tax category rate: The percentage tax rate according to the tax category.
Invoice line
The invoice line category contains an itemised entry which provides details of goods or services provided, their net price, quantity, and other specifics.
- Invoice line identifier: The unique identifier assigned to a specific invoice line.
- Invoiced quantity: The quantity of goods/services charged.
- Unit of measure code: The unit of measure according to which the quantity of goods/services is measured.
- Invoice line net amount: The invoice line’s total amount before tax.
- Item net price: The item price minus the item price discount without the tax.
- Item gross price: The unit price minus the item price discount without tax.
- Item price base quantity: The item units to which the price is applicable.
- Invoiced item tax category code: The invoiced item’s tax category code.
- Invoiced item tax rate: The percentage tax rate applied to the invoiced item.
- VAT line amount in AED: The VAT amount for every line item in AED. (This is not a mandatory field in the commercial e-invoice.)
- Invoice line amount in AED: The total payable amount for every line item in AED. (This is not a mandatory field in the commercial e-invoice.)
- Item name: The item name.
- Item description: A short description of the item for easy identification.
Why are mandatory fields crucial?
The e-invoicing system is based on seamless integration, compliance, efficiency, and transparency. The core of this system starts with correct data entry, which begins with ensuring that all mandatory fields are filled out. Failure to provide the data will result in invoice rejection and may lead to future penalties for non-compliance. The penalties include VAT recovery issues, fines, cash flow disruptions, and overall delays. Businesses should take a disciplined approach to ensure all mandatory fields are completed and submitted for further processing.
E-invoicing is driving a digital transformation in the UAE demographic. Filling the necessary mandatory fields in an e-invoice is the first step towards compliance. By doing so, businesses ensure they are making the best use of the e-invoicing framework. Failure to comply with the rules can result in penalties, as e-invoices are continuously rejected, leading to business issues such as cash-flow disruptions. This can negatively impact the business. All businesses should stay up to date and compliant.
