The regulation of Tax Invoices and Tax Credit Notes is a cornerstone of the UAE’s Value Added Tax (VAT) system, ensuring transparency, accountability, and proper tax collection. Articles 59 and Article 60 of the Executive Regulation of Federal Decree-Law No. 8 of 2017 define the requirements for these critical documents. These articles have undergone recent amendments through Cabinet Decision No. 100 of 2025, which became effective on September 29, 2025.
Article 59: Tax Invoices
Article 59 sets forth the mandatory particulars for a valid Tax Invoice, which serves as the primary record of a taxable supply. For a full Tax Invoice, the following information is required:
- The words “Tax Invoice” must be clearly displayed.
- The name, address, and Tax Registration Number (TRN) of the Registrant making the supply.
- The name, address, and TRN of the recipient, if they are a Registrant.
- A sequential or unique invoice number for identification.
- The date the invoice was issued.
- The date of supply if it differs from the invoice date.
- A description of the goods or services supplied.
- For each item, the unit price, quantity, tax rate, and the amount payable in AED.
- The amount of any discount offered.
- The gross amount payable in AED.
- The tax amount charged in AED, along with the exchange rate if the currency was converted.
- A statement that the recipient is required to account for the tax, with a reference to the relevant provision of the Decree-Law, if applicable.
The regulation provides flexibility by allowing a simplified Tax Invoice in certain situations. This simplified version must include the words “Tax Invoice,” the supplier’s name, address, and TRN, the date of issue, a description of the supply, and the total consideration and tax amount in AED. This option is available when the recipient is not a Registrant or when the consideration for the supply does not exceed AED 10,000 and the recipient is a Registrant.
A Tax Invoice is not required for a wholly zero-rated supply if there are or will be sufficient records available.
In addition, the article specifies that Tax Invoices can be issued electronically, provided that the supplier can securely store a copy and the authenticity and integrity of the content are guaranteed. A recipient may also raise a Tax Invoice on behalf of a supplier, or an agent may do so on behalf of a principal, under a written agreement and with specific information clearly displayed on the invoice.
Article 60: Tax Credit Notes
Article 60 outlines the requirements for issuing a Tax Credit Note, a document used to adjust the tax amount on a previously issued Tax Invoice. The following particulars are mandatory for a Tax Credit Note:
- The words “Tax Credit Note” must be clearly displayed.
- The name, address, and TRN of the supplier and the recipient (if a registrant).
- The date of issue.
- A clear explanation for the issuance of the note.
- Information that is sufficient to identify the original supply to which the note relates.
- Details of the financial adjustment, including the original value from the Tax Invoice, the corrected value, the difference between these amounts, and the tax charged on that difference in AED.
- The article also notes that if multiple Tax Credit Notes are issued for the same Tax Invoice, the adjusted value must be based on the previous credit note.
The article also specifies that Tax Credit Notes can be issued electronically. It also allows a recipient or an agent to issue the note on behalf of the supplier under certain conditions, including a written agreement and the retention of records.
The document also mentions that where a Registrant is required or voluntarily chooses to issue an electronic invoice or credit note, certain clauses within Articles 59 and 60 will not apply, as determined by a decision issued by the Minister.
E-Invoicing: A Step Towards Digital Tax Compliance
The amendments to Articles 59 and 60 reflect the UAE’s move towards a digital tax environment. The regulation explicitly permits the issuance of Tax Invoices and Tax Credit Notes by electronic means, a crucial step in modernizing tax.
This indicates the government is preparing for a dedicated e-invoicing system that will streamline procedures for taxpayers and enhance the efficiency of tax collection.
Need Professional Assistance? Connect with RVG
At RVG Chartered Accountants, we help businesses navigate UAE VAT regulations, including Tax Invoices and Credit Notes under Articles 59 & 60, with clarity and confidence.
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