(UAE-VAT) – Applicability of Article (67) and period for Recording of Output Tax and VAT Return.

Relevant Articles

Federal Decree-Law No. (8) of 2017 on Value Added Tax:

Article (67) Date of Issuance of Tax Invoice

The Registrant shall issue a Tax Invoice within 14 days as of the date of supply as stated in Article (25) of this Decree-Law.

Article (25) Date of Supply

Tax shall be calculated on the date of supply of Goods or Services, which shall be earlier of any of the following dates:

1.     The date on which Goods were transferred, if such transfer was under the supervision of the supplier.

2.     The date on which the Recipient of Goods took possession of the Goods, if the transfer was not supervised by the supplier.

3.     Where goods are supplied with assembly and installation, the date on which the assembly or installation of the Goods was completed.

4.     The date on which the Goods are Imported under the Customs Legislation.

5.     The date on which the Recipient of Goods accepted the supply, or a date no later than (12) months after the date on which the Goods were transferred or placed under the Recipient of Goods 
disposal, if the supply was made on a returnable basis.

6.     The date on which the Services were completed.

7.     The date of receipt of payment or the date on which the Tax Invoice was issued.

The obligation to account for output tax arises at the tax point of the supply, i.e. at the date of supply. Once the date of the supply has taken place, the Taxable Person must account for the output tax in the VAT Return covering that Tax Period.


Date of Supply of Goods / Services –  30th March 2018.

Invoice issued (as per Article (67)) –    05th April 2018.

In the above example, Supply of Goods / Services should be considered for the month of March 2018, since the tax point of the supply, i.e. the date of supply is in the month of March 2018.

In this case, March 2018 should be considered for the purpose of VAT Return & Output Tax Liability.

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