The latest issue of the UAE Official Gazette includes amendments to national VAT law (the Federal Decree-Law No. (8) of 2017 regarding Value Added Tax (VAT)). These changes are driven by the upcoming e-invoice mandate in the country.
This is the first time that the VAT law in the country has been changed to include electronic invoice and credit note definitions, and the VAT system now also includes a definition of the billing system. The next step for the Ministry of Finance will be to work on the regulation of electronic invoices that will determine how the e-invoicing system will function, its scope, dates of implementation and timelines for the phased implementation.
The now published amendments to the VAT law include:
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Updated Definitions:
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Tax Invoice: Now includes both written and electronic documents detailing taxable supplies.
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Credit Note: Covers amendments to taxable supplies, including electronic notes.
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New Definitions Added:
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Billing System: An electronic system for managing invoices and credit notes.
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Electronic Invoice and Credit Note: Documents issued and processed electronically.
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Revised Articles:
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Article 55: Details on recovering input tax, emphasizing electronic invoicing.
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Article 65: Conditions for issuing tax invoices, including electronic formats.
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Article 70: Requirements for tax credit notes, including electronic issuance.
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These amendments aim to streamline VAT processes and enhance compliance through electronic systems. Further Regulations of this Decree-Law will specify the requirements for the issuance of electronic invoices.
