Issue
Article 59 of Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree Law No. (8) of 2017 on Value Added Tax (“Executive Regulations”) prescribes the requirements of a tax invoice and the circumstances in which one must be issued.
There are a number of circumstances in which businesses have sought clarity over the application of the requirements outlined in Article 59.
Summary
This Public Clarification explains the application of the Article 59 of the Executive Regulations with regards to tax invoices, and specifically explains the following requirements:
In all cases where a taxable supply is made, a tax invoice must be issued and delivered to the recipient. This includes supplies which meet the conditions for a simplified tax invoice to be issued;
Where simplified tax invoices are issued, there is no requirement to show the net value (i.e. the amount excluding the tax) for line items;
Where full tax invoices are issued, line items have to show the tax value and net value, it is not mandatory to show the gross value;
Tax invoices issued in a foreign currency must show the tax amount converted to AED and the exchange rate used for the conversion; and
Rounding on tax invoices should be performed on a line item basis to the nearest Fils.