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E-Invoicing in UAE

Flick Network is a leading reg-tech company delivering advanced solutions for e-invoicing and digital compliance across the Middle East and India. We operate under the name Specialized Achievers Company Limited in Saudi Arabia and as Signitive Technologies Private Limited in India. With a growing presence in the UAE, we assist businesses of all sizes in meeting the latest e invoice UAE regulations mandated by the Federal Tax Authority (FTA).<br>

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E-Invoicing in UAE

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  1. Flick Network We're building a future-proof network, that’ll help you and your business grow withoutworrying about those ever-changing requirements. https://www.flick.network/

  2. E-Invoicing in UAE: A Complete Guide for Your Business https://www.flick.network/en-ae/e-invoicing-uae Introduction to E-Invoicing in UAE ● UAE is adopting mandatory e-invoicing for B2B and B2G by July 2026. ● All invoices must be issued, sent, received, and stored electronically using government-approved systems. ● No more paper or PDF invoices outside this system. ● The aim is to enhance efficiency, transparency, and tax compliance.

  3. Key Objectives: Cut down paper usage ● Minimize errors ● Prevent tax evasion ● Align with global digital standards ● Reference: ? ? flick.network/en-ae/e-invoicing-uae

  4. Framework, Timeline & Key Updates UAE’s E-Invoicing Framework & Timeline Framework: ● Based on Peppol 5-Corner Model ○ Parties: Seller → Seller's AP → Buyer’s AP → Buyer → FTA ○ Ensures secure, fast, and standardized invoice exchange.

  5. Mandatory From: ● July 2026 for all B2B & B2G transactions Key Updates: ? ? 14 Mar 2025: Accreditation criteria released for service providers ● ? ? 27 Feb 2025: Public consultation deadline for Peppol framework ● ? ? 6 Feb 2025: Data Dictionary released by FTA ● ? ? 25 Oct 2024: FTA publishes official eInvoicing portal ● ? ? 14 Feb 2024: Dubai E-invoicing Exchange Summit – Peppol model confirmed ● Visit for details: ? ? flick.network/en-ae/e-invoicing-uae

  6. 1. Reverse Charge Mechanism (RCM) in UAE VAT: A Complete Guide https://www.flick.network/en-ae/reverse-charge-mechanism-uae-vat What is RCM? ● Under Reverse Charge Mechanism, VAT liability shifts from supplier to buyer. ● Used when the supplier is not VAT-registered in UAE, yet the supply is taxable.

  7. RCM vs. Forward Charge Forward Charge Reverse Charge (RCM) ● Buyer calculates, declares, and pays VAT ● Supplier collects and remits VAT ● Supplier issues VAT invoice ● Supplier issues invoice without VAT ● Common for local transactions ● Common for imports and non-UAE suppliers

  8. When is RCM Applicable? Import of goods/services from foreign suppliers ● Specific notified supply categories under UAE VAT Law ● Example: Import Transaction ● SmartTech Trading LLC (Abu Dhabi) imports AED 8,000 worth from Global Gadgets Ltd (Singapore) ● Supplier doesn’t charge VAT ● Buyer calculates 5% VAT = AED 400

  9. Recorded as: ● Output VAT (Box 3) – AED 400 ● Input VAT (Box 10) – AED 400 (if eligible) Also appears in Box 6 of VAT Return Form 201 ● Key Takeaway ● ● Even if the supplier is abroad & not VAT-registered in UAE, the buyer must account for VAT under RCM. ? ? Explore UAE VAT e-Invoicing →

  10. 2. How to File VAT Return in UAE – Step-by-Step Guide for Businesses https://www.flick.network/en-ae/vat-return-uae What is VAT Return? ● A document showing taxable sales, purchases, imports & exports during a tax period. ● Filed via EMARATAX portal of the Federal Tax Authority (FTA). Standard form used: VAT 201 ●

  11. Key VAT Return Sections 1. VAT on Sales (Output VAT) – VAT collected from customers. 2. VAT on Purchases (Input VAT) – VAT paid to suppliers. 3. Net VAT Due ● If Output VAT > Input VAT → Pay difference to FTA ● If Input VAT > Output VAT → Request refund or carry forward

  12. Who Must File VAT Returns? ● All UAE VAT-registered businesses & individuals ● Mandatory Registration: Annual taxable turnover > AED 375,000

  13. Filing Process & Deadlines Step-by-Step Filing Process 1. Login to EMARATAX: https://eservices.tax.gov.ae 2. Go to “VAT Returns” section 3. Choose Form VAT 201 4. Enter Sales, Purchases, Imports/Exports 5. Review Net VAT due or refundable 6. Submit Return 7. Make Payment (if VAT is payable)

  14. Filing Frequency ● Monthly or Quarterly – Based on FTA assignment Return Filing Deadline: 28th of the following tax period ● Avoid penalties – File on time and ensure accurate entries ? ? Full guide: www.flick.network/en-ae/vat-return-uae

  15. 3. Understanding VAT in the UAE: Key Rates, How to Register & Exemptions https://www.flick.network/en-ae/vat-in-uae Understanding VAT in the UAE Key Rates, Registration, & Exemptions ? ? What is VAT? ● A 5% consumption-based tax on goods & services. ● Introduced on Jan 1, 2018 under Federal Decree Law No: 8 of 2017. ● Applies at each stage of the supply chain. ● Final tax burden falls on the consumer.

  16. Why UAE Introduced VAT? ● To diversify the economy beyond oil. ● Strengthen government revenue. VAT Return Filing: ● Must file VAT Form 201 within 28 days of each tax period. Learn more: https://www.flick.network/en-ae/vat-in-uae

  17. UAE VAT Rates & Compliance Standard Rate – 5% Applicable to: ● Retail goods ● Food & beverages ● Commercial property rentals ● Professional & electronic services ● Utilities ● Imported goods

  18. Zero Rate – 0% Supplies eligible for input VAT recovery: ● Export of goods/services ● International transport ● Education & healthcare (certain categories) ● Crude oil & natural gas

  19. VAT Exemptions (No VAT recovery possible) ● Residential buildings (non-zero-rated) ● Undeveloped land ● Passenger transport (local) ● Selected financial services (implicit margin-based)

  20. Key Topics Covered in Full Guide 2025 VAT rule updates VAT calculation methods Company registration steps E-invoicing & tax digitization Tourist VAT refunds Non-compliance penalties Explore full VAT Guide: https://www.flick.network/en-ae/vat-in-uae

  21. 4.VAT Late Payment Penalty in UAE: Due Dates, Calculations and Examples https://www.flick.network/en-ae/vat-late-payment-penalty-uae VAT Late Payment Penalty in UAE Overview of VAT in UAE ● Introduced: 1 January 2018 ● Regulated by: Federal Tax Authority (FTA) Applicable to all VAT-registered businesses ●

  22. Why Penalties Are Imposed ● Late VAT Registration ● Non-filing or Delayed Filing of VAT Returns Late Payment of VAT Dues ●

  23. Key Late Payment Penalty Rules Situation Penalty Imposed 2% of unpaid tax immediately ● VAT not paid by due date ● 7th day after due date Additional 4% of unpaid tax ● Daily penalty from day 1 after 1st month 1% daily (up to 300%)

  24. How to Avoid Penalties ● Timely VAT filing ● Set reminders for due dates ● Use FTA-approved accounting software Explore full guide https://www.flick.network/en-ae/vat-late-payment-penalty-uae

  25. Example – VAT Late Payment Penalty Calculation (Optional) Example: If AED 10,000 VAT is unpaid: Timeline Penalty Applied Amount (AED) Day 1 (Due Date) 2% Immediate Penalty 200 Day 7 Additional 4% Penalty 400 Day 31 onward 1% daily until paid (e.g. 10 days = 10%) 1000 Total penalty 1600

  26. Tip: Always verify FTA portal for latest due dates and filing schedules. Visit: www.flick.network/en-ae/vat-late-payment-penalty-uae

  27. 5. Types of VAT Invoices in the UAE: Tax vs Simplified Guide https://www.flick.network/en-ae/types-of-vat-invoices-uae Understanding VAT Invoices in the UAE Types of VAT Invoices (as per FTA Guidelines): ● Tax Invoice ○ For B2B transactions over AED 10,000 ○ Mandatory if both parties are VAT registered ● Simplified Tax Invoice ○ For B2C transactions or B2B below AED 10,000

  28. When is a Tax Invoice Required? ● Supplier and buyer are VAT-registered ● Value exceeds AED 10,000 ● May also apply to reverse charge supplies (must state reverse charge) ? ? Learn about VAT Penalties: Flick.network

  29. What Must a Tax Invoice Include? Mandatory Fields (Tax Invoice): ● Title: "Tax Invoice" visibly stated ● Supplier’s name, address, TRN ● Buyer’s name, address, TRN (if registered) ● Unique invoice number ● Invoice date and supply date (if different) Description of goods/services ●

  30. ● Quantity, unit price, total excl. VAT ● VAT rate & amount ● Discounts (if any) ● Total incl. VAT ● Reverse charge note (if applicable) ? ? Stay compliant and avoid penalties: flick.network/en-ae/vat-late-payment-penalty-uae

  31. 6.How to Get Accredited as an E-Invoicing Service Provider in the UAE: A Comprehensive Guide https://www.flick.network/en-ae/e-invoicing-service-provider-accreditation-uae How to Get Accredited as an E-Invoicing Service Provider in the UAE Overview & Legal Framework Why E-Invoicing Accreditation Matters ● Enhances operational efficiency and tax compliance ● Aligns with UAE’s digital tax infrastructure ● Regulated by the UAE Ministry of Finance

  32. Legal Foundation ● UAE Constitution ● Federal Laws & Decrees: ○ Law No. 1 of 1972 – Ministerial powers ○ Decree-Law No. 13 of 2016 – Establishes FTA ○ Decree-Law No. 8 of 2017 – VAT Law ○ Decree-Law No. 28 of 2022 – Tax Procedures Decree-Law No. 47 of 2022 – Corporate Tax ○

  33. Accreditation Process Accreditation Essentials ● Meet eligibility standards set by the Ministry ● Undergo systematic evaluation & approval ● Fulfill ongoing compliance monitoring ● Adhere to renewal/cancellation policies

  34. Key Focus Areas ● Data security & interoperability ● Technical infrastructure ● Legal obligations & reporting Learn more: www.flick.network/en-ae/e-invoicing-service-provider-accreditation-uae

  35. 7.How to Apply for a VAT Refund in the UAE https://www.flick.network/en-ae/vat-refund-uae What is a VAT Refund? ● A VAT refund allows businesses or individuals to recover excess input VAT. ● Applicable when VAT paid on purchases > VAT collected on sales. ● Refund is submitted to the Federal Tax Authority (FTA).

  36. Who Can Claim a VAT Refund? 1. Foreign Businesses ○ No fixed presence or VAT registration in the UAE. ○ Can claim VAT on eligible UAE business expenses. 2. UAE Nationals Building New Homes ○ Can reclaim VAT paid on construction materials and contractor services for personal residences. 3. Tourists in the UAE ○ Eligible for VAT refunds on personal purchases. ○ Processed at airport kiosks upon departure.

  37. Apply or Learn More: flick.network/en-ae/vat-refund-uae

  38. Steps to Apply for VAT Refund (Optional) How to Apply for a VAT Refund? ● Log in to the FTA e-Services portal. ● Submit VAT refund form (Form VAT311 for registered businesses). ● Attach necessary documents (invoices, Emirates ID/passport copy, bank details). ● FTA reviews the application within 20 business days. Approved amount is transferred to your bank account. ●

  39. 8.Step-by-Step VAT Return Filing in UAE (FTA Guide) https://www.flick.network/en-ae/vat-return-filing-uae-process What is a VAT Return? ● A report submitted to the Federal Tax Authority (FTA) ● Shows VAT collected on sales and VAT paid on purchases Covers: Imports, Exports, Exempt & Zero-Rated Sales ●

  40. Filing Platform All VAT returns are filed via EMARATAX Form: VAT 201

  41. Filing Frequency Monthly or Quarterly, based on turnover Deadline: 28th day after the end of each tax period

  42. VAT Return Scenarios VAT Payable: Collected VAT > Paid VAT Refundable VAT: Paid VAT > Collected VAT Option to claim refund or carry forward

  43. Who Must File a VAT Return? VAT Return Obligation ● Mandatory: Turnover > AED 375,000/year ● Voluntary: Turnover or expenses > AED 187,500/year ● No Sales? Still must file if TRN is active ● Exempt/Unregistered? No filing required

  44. Important Notes VAT filing is compulsory once registered Even zero transactions require return submission FTA may penalize for non-filing

  45. Learn the Full Process: flick.network/en-ae/vat-return-filing-uae-process

  46. 9. How to Calculate VAT in UAE | Easy VAT Formula & Examples https://www.flick.network/en-ae/how-to-calculate-vat-in-uae What is VAT? ● VAT (Value Added Tax) is a 5% indirect tax on most goods and services in the UAE. ● Introduced in 2018, paid by the customer, collected by businesses, and remitted to the government.

  47. How VAT Works in the Supply Chain Manufacturer → adds 5% VAT while selling to Wholesaler Wholesaler → adds 5% VAT while selling to Retailer Retailer → includes VAT in the price paid by Customers

  48. Standard VAT Rate 5% on most goods and services Some items are zero-rated or exempt under UAE VAT law

  49. VAT Calculation Methods Two Simple Formulas to Calculate VAT VAT Exclusive Price Use when price does not include VAT Formula: VAT = Original Price × 5% Total Price = Original Price + VAT Example: AED 1,000 × 5% = AED 50 VAT → Total = AED 1,050

  50. VAT Inclusive Price Use when price includes VAT Formula: VAT = (Total Price × 5) ÷ 105 Original Price = Total Price - VAT Example: AED 1,050 × 5 ÷ 105 = AED 50 VAT → Original Price = AED 1,000 Learn More: https://www.flick.network/en-ae/how-to-calculate-vat-in-uae

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