When can a simplified tax invoice be used in the UAE?
In two cases under Article 59 of the VAT Executive Regulation: when the customer is not a registrant, or when the customer is a registrant and the consideration does not exceed AED 10,000. It cannot be used where the reverse charge applies. It needs fewer particulars than a full tax invoice.
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Why contractors rarely use it
Most construction invoices go to registered developers and contractors and exceed AED 10,000, so they need the full invoice. Small maintenance jobs for homeowners are where a simplified invoice fits.
Splitting invoices
The regulation also bars issuing separate invoices for supplies made in one transaction, so a large job cannot be split to stay under AED 10,000.
How SupaJack Construct helps
Tax invoices raised in SupaJack Construct carry the supplier's and customer's TRNs, a sequential number, the certificate reference, the 5% rate and VAT in AED. The system checks that a TRN has exactly 15 digits and applies the AED 10,000 ceiling for simplified invoices to registered customers.
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 maintenance contractor fixes a leak at a villa for a homeowner for AED 1,800 plus AED 90 VAT. The homeowner is not registered, so a simplified invoice is enough. The same AED 1,800 job for a registered facilities company could also use one, being under AED 10,000.
Questions people ask
Is the customer's TRN needed on a simplified invoice?
No.
What is the limit for registered customers?
AED 10,000 of consideration.
Can it be used under the reverse charge?
No.