Simplified Tax Invoice under VAT in UAE

Simplified Tax Invoice format

As per the mandatory details required, a sample format of a Simplified Tax Invoice is shown below

Invoice for cash sales generated from TallyPrime

As you can observe, the details required to be shown in a Simplified Tax Invoice, are lesser as compared to a Tax Invoice. While both a Tax Invoice and Simplified Tax Invoice have to be prepared with the same heading 'Tax Invoice', a significant difference is that in the Simplified Tax Invoice, the recipient's details are not required.

Hence, a Simplified Tax Invoice is easier to prepare, as compared to a Tax Invoice. However, for retail businesses and businesses whose supplies to registrants are for a value less than AED 10,000, it is important to ensure that simplified tax invoices are issued for all taxable supplies of goods or services. Similar to a Tax invoice, Simplified Tax Invoices are important documentary proof of taxable supplies having taken place. These invoices will also serve as the basis for return filing by suppliers and for the claim of the input tax credit by registered recipients. For businesses which are required to issue Simplified Tax Invoices, using a VAT software which will automate the task of preparing the invoices, will make it easier. It is important to select a software which automatically prepares a Simplified Tax Invoice based on the nature of a transaction, fills the details required in a Simplified Tax Invoice and maintains the details of these invoices in a secure manner for future reference.