Operating a salon or spa in the UAE requires strict adherence to the regulations set by the Federal Tax Authority (FTA), especially concerning Value Added Tax (VAT). A crucial part of this compliance is issuing a correct tax invoice for every transaction. This guide details the mandatory format to ensure your business stays compliant.
Key Takeaways
- Every tax invoice must clearly state "Tax Invoice".
- Your business name, address, and Tax Registration Number (TRN) are mandatory.
- The tax amount must be shown separately in AED.
What is a Tax Invoice?
A tax invoice is a written document that a VAT-registered business must issue to its customer when a taxable supply of goods or services is made. It records the transaction details and is essential for both the supplier to account for the VAT collected and for the recipient (if they are also VAT-registered) to claim input tax credits.
Mandatory Components of a UAE Tax Invoice
According to the FTA, a full tax invoice must include the following information:
- The words **"Tax Invoice"** clearly displayed.
- Your salon/spa's name, address, and Tax Registration Number (TRN).
- The customer's name and address. (If they are VAT-registered, their TRN must also be included).
- A unique and sequential invoice number.
- The date the invoice is issued.
- The date of supply (if different from the invoice date).
- A clear description of the services (e.g., "Classic Manicure", "Balayage Hair Color") or goods sold.
- For each item: the unit price, quantity, the VAT rate (e.g., 5%), and the amount payable in AED.
- Any discount offered.
- The gross amount payable in AED (before tax).
- The total tax amount payable in AED.
- The total amount payable in AED (including tax).
Simplified vs. Full Tax Invoice
For transactions where the total value is less than AED 10,000, you can issue a simplified tax invoice. This requires less information, such as not needing the recipient's name and address. However, it's often best practice to use the full invoice format for consistency and professionalism.
Example Tax Invoice
Here is a visual representation of a compliant tax invoice for a salon:
Your Glam Salon
123 Beauty Street, Dubai, UAE
**TRN:** 100012345678901
Tax Invoice
Bill To:
Aisha Al Maktoum
Downtown Dubai, UAE
Invoice #: INV-0123
Date: 08-Aug-2025
| Service/Product | Price (AED) |
|---|---|
| Women's Haircut & Blowdry | 300.00 |
| Retail: Hydrating Shampoo | 120.00 |
Common Mistakes to Avoid
- Forgetting to include the words "Tax Invoice".
- Not showing the Tax Registration Number (TRN).
- Calculating the VAT incorrectly or not showing it as a separate line item.
- Using a non-sequential invoice number.
These mistakes can lead to penalties from the FTA, so it's vital to get the format right every time.
Using Software for Compliant Invoicing
Manually creating compliant invoices for every client is time-consuming and prone to error. A modern salon management software with an integrated Point of Sale (POS) system, like Zolmi, automates this entire process. When you complete a sale, the system automatically generates a fully FTA-compliant tax invoice with all the required details, ensuring accuracy and saving you valuable time.
Conclusion
Issuing correct tax invoices is a fundamental aspect of running a compliant business in the UAE. By understanding the mandatory components and leveraging software to automate the process, you can ensure your salon or spa meets its legal obligations effortlessly, allowing you to focus on providing excellent service to your clients.