UAE

UAE VAT Credit Note Requirements (FTA Guide)

UAE Federal Tax Authority requirements for tax credit notes. TRN requirements, 5% VAT rules, and FATOORA e-invoicing compliance.

UAE VAT Credit Note Basics

Under UAE VAT law (Federal Decree-Law No. 8 of 2017), a tax credit note is required when the tax charged on a supply exceeds the actual tax due — due to returns, price reductions, or invoice errors.

FTA Required Fields

The FTA requires: words 'Tax Credit Note'; supplier and recipient TRN; sequential number; date; reference to original invoice; description of goods/services; amount of adjustment; and VAT amount at 5%.

TRN Requirements

Both supplier and recipient Tax Registration Numbers (TRN) must appear on the credit note. TRN format: 15-digit number starting with 100. Verify TRNs on the FTA portal before issuing.

5% Standard Rate

UAE standard VAT rate is 5%. Credit notes must show the VAT adjustment at the same rate as the original supply. Zero-rated and exempt supplies have specific credit note rules.

Time Limit

Credit notes should be issued promptly after the event. While UAE law doesn't specify a strict deadline, best practice is within 14 days. The VAT adjustment is reported in the return period when the credit note is issued.

Record Keeping

UAE law requires keeping credit notes for 5 years (15 years for real estate). Digital and physical copies are accepted. Records must be available for FTA inspection.

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