Tax Invoicing format in UAE

Hi There,

Here in UAE we have TAX invoicing format to be implemented as per Law. The format should be as follows:

Now we need to create the same formatted one in Manager. Is it possible and How?

Kindly help as the Federal Tax Authorities (FTA) had issued fines for not following the same format.

Thanks in Advance
Rubin

Your law does not specify format. It specifies content. All this is accommodated if you import and use the UAE localizations, include your tax number in Business Details, and mark transactions as tax-inclusive.

the example image provided by @Rubins31 has the invoice which is similar to tax-exclusive in Manager even though the statement says inclusive of VAT. maybe all they meant was simply to show the total which includes the tax value too.
anyway Manager confirms with the checklist provided and @Rubins31 can make sales invoices without enabling the tax-inclusive checkbox.

Hi Tut,
Total before VAT is mandatory to be displayed.

Also Total before VAT and VAT Incl. should be displayed above Total.

I am not sure why they expect such format, the reason I request is that they have fined some retail outlet mentioning that they have not followed similar format, though they have mentioned all the values (contents) expected in the mentioned form, however in different sequence.

Also normal tax invoice format mentioned as per the sample and detailed invoice which should have each items to be mentioned separately with the tax value in a column.

Please find the below image (of a retail outlet) for using such invoice some one got fine for AED: 5000/-.

image

Your suggestions and advice please.

Thankyou. But Total before VAT to be displayed mandatorily. Any suggestions

Provide a link to any law or government regulation requiring this.

The links are as follows:

click on link https://tax.gov.ae/en/tax-topics-a-z and choose for Tax invoices, you will be able to download a PDF document mentioning the requirements.

Also Click on to https://tax.gov.ae/en/vat/guides-listing where you can see Tax invoices full guide which mentions the requirements according to the Law.

Kindly check and advise.

Thanks

The document references 4 items required on a Tax Invoice - no where does it mention total before tax

@Rubins31, you have provided links to documents I have studied in detail before in answering other forum questions. Nowhere have I ever seen any UAE regulation addressing the format of a tax invoice nor requiring any information that cannot be satisfied with Manager. This is true for both full and simplified tax invoices. (Your graphic only shows a simplified tax invoice.)

I also note that even your example does not point to the “Total before VAT” line. This is important, because (consistent with other UAE regulations and guidance) it is what allows use of tax-inclusive pricing as implemented in Manager. But tax-exclusive pricing is also permitted. Both satisfy UAE requirements. I invite your attention to pages 47-48 of https://tax.gov.ae/-/media/Files/EN/PDF/Guides/Taxable-Person-Guide-June-2018.pdf.

Anecdotes about others’ problems with tax authorities are dangerous. Especially in a place like the UAE, where the VAT regimen is very new and people have little experience with it, government actions are easily misunderstood. You say, for example, that this retail outlet was fined for using such an invoice. You apparently interpreted this to mean the fine was because the format was incorrect. But in fact, the tax invoice (a simplified one) is missing legally required information: the name, address, and TRN of the supplier. (I also note, by the way, that the graphic example you provided—even though from the Federal Tax Authority—does not mention the requirements for name and address, even though it shows them.) It is always better to go back to the official, written source of requirements.

Thank you Tut for the time spend in reading the docs. My suggestion is that it would be a good idea to have the Total before VAT row above the VAT incl. and Total with VAT value as per the format. Is it possible.

Regarding the retail outlet non-compliance Tax Invoice, I have only scanned a part to project as I did not want to show the company details, TRN number etc… Actually the fins has been issued because of the reason I have mentioned earlier only as the customer is known to me and the inspectors told them as non-compliance and the reason is because of the sequence in mentioning the values.

They wanted the sequence as follows: (Let us say Seq-FTA)

  • Amount of each Items with VAT in each row
  • Total before VAT
  • Vat incl.
  • Total with VAT

Sequence is important. where as in Manager if we click the inclusive of VAT, we get the following sequence: (Let us say Seq-Man)

  • Amount of each Items with VAT in each row
  • Total with Vat
  • VAT Incl.

In this sequence Seq-Man, there is a difference compared to the required sequence Seq-FTA.

So by any chance can we produce Tax Invoice based on the sequence Seq-FTA, which would be more informative and serves the purpose with much clarity (though the current Manager’s format Seq-Man is compliant as per your statements but can be of less clarity and less informative).
Thanks.

I’ll make two more comments:

  1. Not only are merchants and consumers sometimes unaware of exact legal provisions when tax regimens change, but so are tax authority personnel. I know it is hard to argue with them, but the fact remains that your decree law and implementing regulations do not require a specific order of information. Manager’s presentation follows what is standard in many other places around the world. (Nearly 200 jurisdictions use some form of VAT.) If you want to change this, you can, with a custom theme. You would need to introduce multiple complete loops through the totals array, each with a bunch of replacement filters. That’s a lot of work for something that isn’t really required.

  2. The example you have shown and called Seq-FTA actually mixes characteristics of tax-inclusive and tax-exclusive invoices. So it is quite unusual in its own right compared to what is used elsewhere in the world. I also note that of all the users in the UAE (and there are many), you are the only one who has raised this as an issue. Others (and their tax authority overseers) seem happy with the default format.

Hi Tut,

If possible consider Seq-FTA changes in your next release and at least for UAE customers if there is a sooner possibility. What we are discussing in the forum is a simple invoicing format. There is also another format as detailed invoicing format for invoices above AED: 10000/-

Please have a look and let us know the possibilities in your next release.

Please advise would it be possible for ourselves to modify such invoicing by custom methods, if so guide us to proceed further.

Thanks.

Please understand, @Rubins31, I am not the developer. No release belongs to me. I am a forum moderator, another user like you. But from my experience, I can tell you a few more things:

  • What you think is a “simple invoicing format” change would not be as simple as you think.
  • There are no separate versions for different countries. Manager is used all around the world.
  • You cannot modify the invoicing format with the specific changes you described, because the variables are not called for a tax-inclusive sales invoice form. If a variable is not used by the program for a particular form, no custom theme can alter that.
  • The developer is highly unlikely to make such a change when it is not required by law and does not match common accounting practice. He sometimes introduces changes upon the suggestion by a single person when they make good sense for other users or add general capability to the program. But I have never seen a change in response to misinterpretation of an informational diagram.

Hi,
Im reading the topic, im in UAE based too, but i dont see any issue.
FTA is not particular on the format, as long as the “tax invoice” , TRN details of the buyer & seller is there, address too.
The system has options if you want inclusive of VAT or not.

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I am following the same inbuilt format of Manager until now. I am concerned after some one got a fine for not following their prescribed format, which I have discussed previously in all the chain of messages of this subject. Please comment after going through all the messages. Thanks.

I already read all the messages and completely understood the concern you are expressing. And I already commented. I have nothing more to offer when you are concerned about someone else’s story that does not match UAE regulations. Perhaps you should contact the FTA directly and discuss your concern with them.

You are right Tut about visiting FTA. But I already visited the FTA office and asked for clarification before starting to write in the forum. In fact they only showed me the invoice format pdf doc and asked me to be compliant with the same. Also discussed with them about the fine matter and they told me the reason was non compliant with reference to value to be displayed in the sequence and as per the pdf doc shown. What else can we do??

It seems you have an issue with the tax authority, not Manager.