UAE Tax VAT Invoices, returns and e-invoicing: practice questions with answers

Question 1

Halwan Electricals LLC received full payment of AED 26,250 on 2 November 2026 from a registered customer for switchgear that it delivered on 20 November 2026. No invoice was issued before payment. What is the latest date by which Halwan must issue the tax invoice?

1. A 30 November 2026
2. B 2 December 2026
3. C 16 November 2026
4. D 4 December 2026

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Answer: C. Under Article 25 of the VAT Decree-Law the date of supply of goods is the earliest of transfer/delivery, receipt of payment and issue of a tax invoice. Payment on 2 November 2026 came first, so that is the date of supply.

Article 67 of the VAT Decree-Law requires the tax invoice within 14 days of the date of supply: 2 November + 14 days = 16 November 2026.

Question 2

On 5 November 2026 Lazurde Catering Supplies LLC agreed with a registered hotel group to cut the price of goods already invoiced and declared in an earlier return. By what date must Lazurde issue the tax credit note?

1. A 19 November 2026
2. B 5 December 2026
3. C 28 November 2026
4. D 31 December 2026

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Answer: A. The VAT Decree-Law (as amended from 1 January 2023) requires a tax credit note to be issued within 14 days of the event that gives rise to the reduction of output tax. Here that event is the agreement of 5 November 2026, so the deadline is 19 November 2026. The contents of the note are set by Article 60 of the Executive Regulation.

Question 3

Ghusn Furniture Trading LLC has revenue of AED 38 million, measured as Ministerial Decision No. 244 of 2025 requires. It sells only to other businesses and is not a government entity. It has not yet chosen to adopt e-invoicing voluntarily. On 2 November 2026 its director asks whether it is already late. Which answer is correct?

1. A No: it must appoint an Accredited Service Provider by 31 March 2027 and implement by 1 July 2027
2. B Yes: it should have appointed an Accredited Service Provider by 30 October 2026
3. C Yes: it should have implemented e-invoicing by 1 July 2026, when the pilot began
4. D No: e-invoicing applies only once revenue reaches AED 50 million, so Ghusn is not required to adopt it

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Answer: A. Ministerial Decision No. 244 of 2025 phases e-invoicing in. Businesses with revenue below AED 50 million must appoint an Accredited Service Provider by 31 March 2027 and implement by 1 July 2027. Larger businesses had to appoint by 30 October 2026 and go live by 1 January 2027; the pilot and voluntary adoption began on 1 July 2026. Ghusn is not yet late.

Question 4

The FTA has assigned Tawi Spring Traders LLC quarterly tax periods ending on 31 January, 30 April, 31 July and 31 October. By what date must Tawi file its return and pay the tax for the period ending 31 October 2026?

1. A 15 November 2026
2. B 30 November 2026
3. C 28 November 2026
4. D 28 December 2026

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Answer: C. VAT returns must be filed, and payable tax paid, no later than 28 days after the end of the tax period (Article 64 of the VAT Executive Regulation; payment of payable tax under the Tax Procedures Law). Tax periods need not follow calendar quarters: the FTA may assign staggered periods. For the period ending 31 October 2026 the deadline is 28 November 2026.

Question 5

Majd Engineering Works LLC has calendar-quarter tax periods. It filed its return for the quarter to 30 September 2026 on 10 October 2026, showing payable tax of AED 84,600, and paid the tax on 30 October 2026. Was the payment on time?

1. A Yes, because the return was filed early, which extends the time allowed for payment
2. B Yes, because payment is due within 28 days after the date the return is filed
3. C Yes, because payable tax may be paid at any time up to the end of the following month
4. D No, because payment was due by 28 October 2026, 28 days after the end of the tax period

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Answer: D. Payable tax must be paid by the same deadline as the return: 28 days after the end of the tax period (Article 64 of the VAT Executive Regulation; Tax Procedures Law). For the quarter ended 30 September 2026 that was 28 October 2026, so payment on 30 October 2026 was two days late, and late-payment penalties under Cabinet Decision No. 40 of 2017 (as amended by Cabinet Decision No. 129 of 2025) would arise.

Question 6

On 9 November 2026 Lamea Diamond Trading LLC sells loose polished diamonds for AED 9,600 (excluding VAT) to a VAT-registered jewellery manufacturer, which has confirmed in writing that it is registered and will set the stones in rings it makes for sale. The supply falls within the domestic reverse charge for gold and diamonds supplied between registrants. What document must Lamea issue?

1. A A simplified tax invoice, because the value is AED 10,000 or less and the customer is registered
2. B A tax invoice charging VAT of AED 480, which the manufacturer then recovers as input tax
3. C No invoice from Lamea, as the manufacturer must issue a self-invoice to account for the VAT
4. D A tax invoice with the buyer's TRN, charging no VAT and stating the buyer must account for it

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Answer: D. Gold and diamonds (other than zero-rated investment precious metals) supplied to a registrant that buys them for resale or for use in manufacturing fall within the domestic reverse charge under Article 48 of the VAT Decree-Law and the Cabinet decision made under it: the registered recipient, not the supplier, accounts for the VAT.

- The supplier must still issue a full tax invoice within 14 days (Article 67 of the VAT Decree-Law). Article 59 of the Executive Regulation requires it to show the recipient's TRN and to state that the recipient is required to account for the tax.
- A simplified tax invoice is not allowed where the reverse charge applies, even if the value is AED 10,000 or less (Executive Regulation as amended in 2024).
- Since Decree-Law No. 16 of 2025 (from 1 January 2026) the recipient does not issue a self-invoice; it keeps the supplier's invoice.