What makes a valid UAE tax invoice — the Article 59 checklist

Why it matters

Input VAT can only be recovered against a valid tax invoice. If a supplier's invoice fails the requirements of Article 59 of the UAE VAT Executive Regulations, the 5% you paid is not recoverable until the invoice is corrected — and claiming it anyway is exactly the kind of finding a Federal Tax Authority audit exists to catch.

A full tax invoice must show

• The words “Tax Invoice” clearly displayed on the document
• The supplier's name, address and Tax Registration Number (TRN)
• The recipient's name, address and TRN, where the recipient is registered
• A sequential invoice number, or a unique number that identifies the document
• The date of issue — and the date of supply, if it differs
• A description of the goods or services supplied
• For each line: the unit price, quantity or volume, the rate of tax and the amount payable, in AED
• Any discount offered
• The gross amount payable in AED
• The tax amount payable in AED — with the exchange rate applied, if the invoice was issued in another currency
• Where the recipient accounts for the tax (reverse charge), a statement saying so and a reference to the relevant provision

When a simplified tax invoice is enough

For supplies under AED 10,000, or where the recipient is not registered for VAT, a simplified tax invoice is permitted. It still must show: the words “Tax Invoice”, the supplier's name, address and TRN, the date of issue, a description of the goods or services, and the total consideration with the tax amount charged.

The failures we see most

• No TRN, or a TRN that doesn't validate — the single most common failure
• The words “Tax Invoice” missing (a quotation or delivery note dressed as an invoice)
• VAT charged at the wrong rate, or arithmetic that doesn't reconcile line-by-line
• Foreign-currency invoices with no AED tax amount or exchange rate
• The same invoice arriving twice through two channels and being claimed twice

How Orbit applies this

Orbit tests every inbound invoice against this checklist on arrival, holds the input VAT on failures instead of claiming it, names the exact failing field, and can draft the correction request to the supplier. The claim happens when the paper holds up — not before.