Tax Invoice vs Simplified Tax Invoice in the UAE: What's the Difference?
Updated June 2026
Short answer: a simplified tax invoice is for sales to consumers (B2C) or any supply of AED 10,000 or less, and needs fewer details. A full (standard) tax invoice is required when you sell to a VAT-registered business (B2B) or the supply is over AED 10,000 — it must include the customer's details and a line-by-line breakdown. Here's exactly what goes on each and which to use.
This is general guidance, not tax advice. For your situation, check the UAE Federal Tax Authority (FTA) or a qualified tax advisor.
The simple rule
Two things decide which invoice you issue:
- Who your customer is — a consumer (B2C) or a VAT-registered business (B2B).
- The amount — whether the total (including VAT) is over AED 10,000.
Use a simplified tax invoice for B2C sales of AED 10,000 or less. Use a full tax invoice for B2B sales, or any supply over AED 10,000. The AED 10,000 figure is a hard line.
What a simplified tax invoice must include
- The words "Tax Invoice"
- Your business name, address, and TRN
- The date of issue
- A description of the goods or services
- The total amount payable and the VAT charged (at 5%)
A simplified invoice can leave out the customer's full details, a line-by-line breakdown, and the date of supply.
What a full tax invoice must include
Everything above, plus:
- A unique, sequential invoice number
- Your customer's name, address, and (if registered) their TRN
- The date of supply, if it differs from the issue date
- A line-by-line breakdown: description, unit price, quantity, and the tax rate and amount per line
- Any discount applied
- The total before VAT, the total VAT, and the gross total payable in AED
- If invoiced in a foreign currency, the AED equivalent and the exchange rate used
Quick comparison
| Simplified tax invoice | Full tax invoice | |
|---|---|---|
| When | B2C, or supply ≤ AED 10,000 | B2B, or supply > AED 10,000 |
| Customer details | Not required | Required (name, address, TRN if registered) |
| Line-by-line breakdown | Not required | Required |
| "Tax Invoice" label, your TRN, 5% VAT | Required | Required |
Which one should you use?
- An Instagram seller invoicing a customer for an AED 450 dress → simplified tax invoice.
- A boutique selling AED 15,000 of stock to a company → full tax invoice (over AED 10,000).
- Selling AED 2,000 of services to another VAT-registered business → full tax invoice (B2B), even though it's under AED 10,000.
Common mistakes
- Using a simplified invoice when a full one is required (B2B, or over AED 10,000).
- Leaving the customer's TRN off a B2B invoice.
- Missing the words "Tax Invoice" or your own TRN.
The FTA treats invoice format errors as compliance issues even when the VAT was calculated correctly, so getting the type right matters.
How Fatura Go helps
Fatura Go creates FTA-compliant tax invoices with your TRN, your line items, and 5% VAT calculated automatically — ready to send by email or WhatsApp. New to tax invoices? See our guide on how to create a VAT invoice in the UAE.
Frequently asked questions
What's the difference between a tax invoice and a simplified tax invoice?
A simplified tax invoice (for B2C or supplies ≤ AED 10,000) needs fewer fields; a full tax invoice (for B2B or supplies > AED 10,000) needs the customer's details and a line-by-line breakdown.
When can I use a simplified tax invoice in the UAE?
For sales to consumers, or any supply where the total including VAT is AED 10,000 or less.
Do I need the customer's TRN on every invoice?
Only on a full tax invoice to a VAT-registered business — not on a simplified invoice.