What must a UAE tax invoice show?
A tax invoice is the document your customer relies on to recover input tax, so the FTA sets out what it must carry. In general terms that means the supplier's TRN, the customer's TRN where they are registered, a sequential invoice number, the date of issue and the date of supply, a description of what was supplied, the VAT on each line and the totals in AED.
Check the current FTA guidance for the full list. Simplified tax invoices and invoices in a foreign currency have rules of their own.
- Supplier and customer TRNs
- A sequential invoice number with no gaps
- Date of issue and date of supply
- Rate and amount of VAT on each line
- Totals, including the VAT payable, in AED
Which VAT treatments does a contractor deal with?
Most construction work is charged at the standard rate of 5%. Some supplies are zero-rated and some are exempt, and the difference matters: zero-rated supplies are still taxable supplies, while exempt supplies sit outside the tax.
Under the reverse charge, the buyer rather than the supplier accounts for the VAT, typically on services bought from abroad and on certain specified supplies. The tax appears as both output and input tax in the buyer's own return.
How do retention and advance recovery affect VAT on a payment certificate?
Retention withholds payment, not tax: the full certified value of the work is taxed, and the retained amount is simply paid later.
Advance recovery is different. The advance was taxed when it was invoiced, so the amount recovered on a later certificate reduces that certificate's taxable value. Getting either one wrong shows up as an overstated or understated return.
When must you register for VAT and file returns?
Registration is mandatory once taxable supplies and imports pass AED 375,000, and a business may register voluntarily from AED 187,500 of taxable supplies or taxable expenses. Each registered business receives a TRN.
Returns are filed on EmaraTax, with the tax paid, within 28 days of the end of each tax period, which is usually quarterly. The return reports standard-rated supplies emirate by emirate, alongside zero-rated and exempt supplies, reverse-charge amounts, imports and recoverable input tax.
UAE compliance figures at a glance
| Rule | Figure | Source |
|---|---|---|
| UAE standard rate of VAT | 5% | Federal Decree-Law No. 8 of 2017 on Value Added Tax |
| Mandatory VAT registration threshold (taxable supplies and imports over the past 12 months, or expected in the next 30 days) | AED 375,000 | Federal Decree-Law No. 8 of 2017 on Value Added Tax; Executive Regulation |
| Voluntary VAT registration threshold (taxable supplies or taxable expenses) | AED 187,500 | Federal Decree-Law No. 8 of 2017 on Value Added Tax; Executive Regulation |
| VAT return and payment due by the 28th day after the end of the tax period (usually quarterly; monthly for some businesses) | 28 days | Federal Decree-Law No. 8 of 2017 on Value Added Tax; Executive Regulation |
Last reviewed 14 Nov 2026. A summary, not tax or legal advice. Confirm your obligations with an adviser.
How Civova handles this
Civova issues tax invoices and credit notes with supplier and customer TRNs, sequential numbers, VAT per line and totals in AED, and supports standard-rated, zero-rated, exempt and reverse-charge treatments. Payment certificates become tax invoices with advance recovery taken off the taxable base and retention held back from payment only. Input VAT on supplier bills and petty-cash receipts is recorded as entered on the receipt.
At return time Civova gives you the figures per emirate, box by box, with every transaction behind each figure. Civova does not file on EmaraTax: your accountant enters the figures there. This page is general information, not tax advice.