When must a tax invoice be issued in the UAE?
Within 14 days of the date of supply. Article 67 of Federal Decree-Law No. 8 of 2017 on VAT sets the 14-day rule, with the date of supply taken from Article 25 or 26. Construction contracts usually fall under Article 26, where the date is the earliest of the invoice, the payment due date or payment.
What this means for interim payments
On a continuous construction contract the invoice itself often fixes the date of supply. Where the contract sets a payment due date before an invoice is raised, or the client pays first, that event fixes the date and the 14 days run from it.
Under Article 26, if none of those events happens, VAT is triggered 12 months after the work was provided.
E-invoicing
Article 67 is subject to the rules for registrants within the electronic invoicing system, which the Ministry of Finance is phasing in. Contractors should follow the e-invoicing timeline for their size band.
How SupaJack Construct helps
A progress invoice can only be raised from an approved payment certificate, and it carries the certificate's figures, the VAT and the TRNs. The invoice date is recorded, so the VAT return uses the right period.
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 main contractor's contract sets the payment due date as 30 days after certification. A certificate issued on 1 April has a due date of 1 May. If no invoice is raised and nothing is paid before then, 1 May is the date of supply and the tax invoice is due by 15 May.
Questions people ask
Does a payment certificate count as the date of supply?
No, but it may set the payment due date that does.
What if the client pays before the invoice?
Payment fixes the date of supply and the 14 days run from it.
Are there exceptions to the 14 days?
The Executive Regulation may set other periods for specific cases.