Simplified Tax Invoice-with free excel and word download

What is a Retail Invoice or Simplified Tax Invoice

A Retail invoice or Simplified Tax Invoice is issued by a registered dealer to a unregistered dealer, A purchaser cannot claim the benefit of input tax credit on a retail invoice as being unregistered. Retail invoice are issued when sales are inter-state  or within a state to an unregistered dealer. It is also known as Simplified Tax Invoice.

Whats in this post

• What is Simplified Tax Invoice?
• Purpose of  Simplified Tax Invoice
• Contents of Invoice
• Who can Raise a Simplified Tax Invoice
• Raising Simplified Tax Invoice through Reach Software

Simplified Tax Invoice Format – Excel and Word Download

Though it is recommended to use a software to generate Simplified Tax Invoices, In case you wish to create one manually, You can download a Simplified Tax Invoice Template from here.

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Purpose of Retail Invoice or Simplified Tax Invoice

The purpose of a retail invoice or Simplified Tax Invoice is a proof of sale, showing  when a person bought what and from where and how much. Simplified Tax Invoices or retail invoice are important documentary proof of taxable supplies having taken place. These invoices will also serve as the basis for return filing by suppliers and for claim of input tax credit by registered recipients

What should a retail invoice or Simplified Tax Invoice Contain?

Retail invoice or Simplified Tax Invoice should contain the same details in tax invoice except TIN of purchaser. A retail invoice may also be in the format for tax invoice. But on the top of the invoice, instead of tax invoice, retail invoice should be printed.The retail invoice can include the basics of the sale such as the seller’s information, the goods bought, and the price paid for them

Requirement and conditions of Retail invoice or Simplified Tax Invoice in UAE

According to the FTA, there will be two kinds of invoices for VAT in UAE. Supply for less than the specified amount will be considered to maintain a simplified tax invoice – specifically for supermarkets and retail industry. Simple VAT Invoices are issued for retail consumers, and they don’t require a VAT number.However, supply for more than the specified amount will have to make a detailed invoice under vat in UAE,

A Simplified Tax Invoice is a simple and basic version of a Tax Invoice, in which details furnished are very minimal compared to Tax Invoice. Simplified Tax Invoice is easier to prepare, as compared to a Tax Invoice. However, for retail businesses and businesses whose supplies to registrants are for a value less than AED 10,000, it is important to ensure that simplified tax invoices are issued for all taxable supplies of goods or services

A Simplified Tax Invoice is to be issued by a registrant for taxable supplies of goods or services in either of the following 2 cases:

• The recipient is not registered under VAT or
• The recipient is registered under VAT and consideration for the supply does not exceed AED 10,000

Simplified Tax Invoice is the type of invoice to be issued by all registered businesses in UAE which supply to consumers or to registered businesses where the value of the supply does not exceed AED 10,000.

 Preparing Simplified Tax invoice – supply less than AED 10,000 should consider the below  in UAE

• “tax invoice” in a prominent place
• Name, address & TRN of supplier
• Date of issue
• Description of goods or services
• Total amount payable
• Total VAT chargeable

For businesses which are required to issue Simplified Tax Invoices, using a VAT software which will automate the task of preparing the invoices, will make it easier. It is important to select a software which automatically prepares a Simplified Tax Invoice based on the nature of a transaction, fills the details required in a Simplified Tax Invoice and maintains the details of these invoices in a secure manner for future reference.