How to Create Simplified VAT Invoices in the UAE

How to Create Simplified VAT Invoices in the UAE?

Value Added Tax (VAT) of 5 percent was introduced in the United Arab Emirates (UAE) in 2018 and is regulated by the Federal Tax Authority. All VAT registered businesses will issue a tax invoice for a taxable supply on the transaction. A simplified VAT invoice will apply when the value of the supply is below AED 10,000 or the buyer is an individual, while a full invoice is required for higher amounts or for B2B and B2G sales. This blog explains simplified VAT invoices, when they apply, the details that must appear on them, and how flick network will make the process easier with automated invoicing.

What is a Simplified VAT Invoice in UAE?

A simplified VAT invoice is a compact form of the standard tax invoice that still fulfills VAT compliance requirements under UAE VAT law. It is issued for transactions below AED 10,000 or for sales made to individuals who are not registered businesses. This format helps businesses handle frequent small sales without adding unnecessary details.

Common users of simplified VAT invoices include supermarkets, cafes, and small retailers where daily transactions are usually of low value. These invoices are widely used because they save time while keeping the process VAT compliant.

The main difference from a full tax invoice is that simplified invoices do not capture customer details or provide a complete tax breakdown. They only require supplier details, item description, VAT rate, and the total payable amount.

When to Use a Simplified VAT Invoice

A simplified VAT invoice will apply in situations where a full tax invoice is not required. The purpose of this format is to make the process easier for small transactions while keeping VAT compliance intact. It helps reduce the workload of businesses that handle a high volume of low value sales.

There are two main cases where a simplified VAT invoice will be issued. The first is when the customer is not VAT registered which usually means individuals. The second is when the transaction value is less than AED 10,000 even if the customer is a business entity.

For example a small café that issues a bill of AED 200 can use a simplified VAT invoice. A retail shop billing AED 8,500 to a company can also use one because the amount is below the threshold. However if the value is AED 15,000 and the buyer is registered business then the seller will have to issue a full invoice to stay compliant.

Details Required in a Simplified VAT Invoice

A simplified VAT invoice will include only the essential information required by the FTA of the UAE. These details ensure the invoice is valid for compliance and help a business report VAT accurately without adding extra paperwork.

The mandatory fields are:

• The supplier’s name, address, and contact information.

• The supplier’s Tax Registration Number.

• The invoice date and the supply date if different.

• A clear description of the goods or services supplied.

• The unit price, the quantity, and the VAT inclusive total.

• The applicable VAT rate and the total VAT charged.

Steps to Create Simplified VAT Invoices in UAE

1. Choose an invoicing system
    A business will first need a reliable invoicing system. This can be accounting software, billing software, or a cash register tool that supports VAT compliance. The system must be able to apply the correct VAT rules on each transaction.

2. Enter supplier details
    The name of the business, the address, the TRN, and the contact information must be added in the system. These details will appear automatically on every invoice and will prove the supplier’s registration under VAT.

3. Add product or service details
    The description of the goods or services must be entered with the unit price and the VAT rate. This step will ensure that the customer knows the exact value of the supply and the VAT applied on it.

4. Generate a unique invoice number
    Every invoice will need a number that the system creates automatically. This number is important for tracking and for cross-checking during VAT audits.

5. Issue the invoice
    The invoice can be given to the customer in digital form such as a PDF or SMS, or in printed form. Both are acceptable if all required details are visible.

6. Maintain records
    A copy of each invoice must be stored for a minimum of five years. These records will be used during VAT return filing and during any FTA audit. Keeping them organized in digital storage will reduce the risk of loss.

Difference Between Simplified and Full VAT Invoice

Feature	Simplified VAT Invoice	Full VAT Invoice
Customer Type	Individuals or small transactions	Registered businesses or high-value sales
Value Limit	Below AED 10,000	Above AED 10,000 or any B2B/B2G transaction
Customer Details	Not required	Required (name, address, TRN)
VAT Information	Total VAT shown	Detailed breakdown of VAT on each item
Usage	Supermarkets, cafes, small retailers	Corporate contracts, high-value sales, B2B and B2G transactions

Record-Keeping and Audit Requirements

Under the VAT law of the UAE, a business must keep copies of all invoices that are issued and received. A simplified VAT invoice will not be treated differently because it is also part of the required records. These records act as proof of compliance and will be checked during VAT assessments.

The law requires that invoices be stored for at least five years. These documents will be needed during an FTA audit, on the filing of VAT returns, and when a business reconciles the accounts of suppliers and customers. Failure to maintain them can result in fines even if VAT has been paid.

Digital storage of invoices is acceptable and will often be the best option. Many businesses now use a cloud system of accounting that reduces manual errors and protects records from loss. This method of storage will also make retrieval easier when audits take place.

How Flick Helps Businesses Create Simplified VAT Invoices

Simplified VAT invoicing can be time-consuming if done manually. Flick provides a smart solution that automates the process and ensures compliance with FTA requirements. 

Businesses using Flick benefit from:

1. Automated Invoice Generation

Flick automatically generates simplified VAT invoices with all mandatory details like supplier TRN, invoice date, and VAT amount. This reduces manual effort and eliminates the risk of missing fields.

2. Built-in Compliance with UAE Rules

The system is configured to check transaction values and customer type before deciding whether a simplified or full invoice is required. This ensures every invoice issued meets UAE VAT law.

3. E-Invoicing Ready Platform

Flick is designed to support UAE e-invoicing. Businesses can issue simplified e-invoices directly through the platform, which will be essential once the July 2026 mandate takes effect.

4. Easy Record Management

Invoices generated through Flick are stored digitally for at least five years, making them easily available for VAT return filing and FTA audits. Businesses no longer need to worry about lost or misplaced records.

5. Scalable for All Business Sizes

From small cafés to large retailers, Flick adapts to the volume of transactions. Businesses can rely on Flick for speed and accuracy when issuing thousands of simplified invoices daily.

 flick network will reduce the workload of staff, ensure compliance with VAT laws, and prepare the business for upcoming e-invoicing regulations.

Conclusion

Simplified VAT invoices in the UAE let businesses process small and quick sales without adding extra details. They apply to transactions under AED 10,000 and to sales made to individuals. Businesses still need to show supplier information, TRN, item description, VAT rate, and total VAT.

From July 2026, all simplified VAT invoices in the UAE will be electronic on the Peppol network. The change will reduce paperwork and keep a clear record of every transaction. Flick helps create and send these invoices automatically. It keeps data accurate, matches FTA rules, and stores records safely. With Flick, businesses save time and reduce mistakes on VAT compliance.

Contact our team today to get started with flick network.

FAQs

1. Who must issue simplified VAT invoices under UAE E-invoicing?
Businesses selling goods or services below AED 10,000 or to non-registered customers must issue simplified VAT invoices under UAE E-invoicing rules.

2. What details are required on a simplified VAT invoice under UAE E-invoicing?
The supplier’s name, TRN, invoice date, goods or service description, VAT rate, and total payable amount must be included.

3. Can B2B transactions use simplified VAT invoices under UAE E-invoicing?
Yes, if the invoice value is below AED 10,000 even B2B transactions may use simplified VAT invoices under UAE E-invoicing.

4. How long should businesses keep simplified VAT invoices under UAE E-invoicing?
Invoices must be stored for at least five years either physically or digitally as required by the FTA.

5. Will simplified VAT invoices change after UAE e-invoicing becomes mandatory?
 Yes. From July 2026, a simplified VAT invoice will become a simplified e-invoice. It will be created and sent on the FTA-approved Peppol network for all B2B and B2G transactions.