Can a UAE tax invoice be issued in US dollars or euros?
Yes, as long as the VAT is shown in AED. Article 59 of the VAT Executive Regulation requires the unit amounts, the gross amount and the VAT expressed in AED, and where a currency other than the dirham is converted, the invoice must show the exchange rate applied.
On this page
Which rate
Use a consistent, documented rate. The UAE Central Bank publishes daily rates, which many businesses use. Whatever source is used should be applied consistently and kept with the records.
Construction contracts in foreign currency
Contracts priced in US dollars or euros for international clients or specialist suppliers are common. The certificate may be in the contract currency, but the tax invoice must carry the AED VAT figure for the return.
How SupaJack Construct helps
Invoices carry the AED amounts the ledger and VAT return use. The ERP holds currency masters and Central Bank rates, so a converted amount can be traced to the rate applied.
Related tools and guides
See the VAT guide for contractors, the VAT calculator, the payment certificate calculator, the retention calculator, finance and VAT in SupaJack Construct, the answer on whether a payment certificate triggers VAT and the meaning of e-invoicing.
Worked example
A contractor invoices a European client EUR 100,000 plus 5% VAT for work in Abu Dhabi. At a rate of 4.0, the invoice shows VAT of EUR 5,000 and AED 20,000, and states the rate used.
Questions people ask
Must VAT be in AED?
Yes.
Must the rate be shown?
Yes, where a currency is converted.
Which rate source?
A consistent, documented source such as the UAE Central Bank.