If you are wondering, when should I submit an e-invoice, it is not dependent on a specific date on the calendar. It is dependent on VAT legislation, namely the date of supply.
According to UAE VAT rules, a tax invoice must be issued within 14 days from the date of supply.
This means that it is dependent on when the goods were delivered or when the service was provided, and not on your accounting system.
There is no legislation that states “submit all invoices by the 30th” or “submit at the end of the month.” The legislation is dependent on when the transaction occurred.
Ideal Submission Time
The best time to send an e-invoice is as soon as the taxable supply takes place and not later than the 14-day limit specified in VAT legislation.
For instance:
- When goods are delivered on 5th March, the invoice should be sent out by 19th March.
- When a service is provided on 10th April, the invoice should be sent out by 24th April.
- This will ensure that the e invoice submission date used by UAE businesses is in line with the right VAT period.
Sending the invoice after 14 days may raise compliance issues, particularly if it impacts VAT returns. VAT returns should be submitted for the right tax period, depending on the date of supply. Sending the invoice late may raise the chances of making errors in VAT returns.
But once the UAE’s structured e-invoicing system is fully implemented, the answer will be even more clear. The system will be able to track when the invoice was issued and sent out. This will ensure that the date the UAE tax authorities receive the e invoice is directly traceable to the compliance process.
Therefore, if you are asking the question again, when should I submit an e invoice, the answer is simple:
- Issue it as soon as the supply has taken place, and always within 14 days as required by law.
- It may be tempting to wait until the end of the month, but from a VAT perspective, it is better to issue the invoices as soon as possible.
FAQs
1. When should I send an e invoice in the UAE?
If you are wondering when should I send an e invoice, the answer is that it depends on the date of supply. Under UAE VAT law, a tax invoice must be issued within 14 days from the date of delivery of the goods or completion of the services. It is not tied to month-end or accounting cycles.
2. Is there a specific date for e invoice submission that UAE businesses must follow?
There is no specific date. The date for e invoice submission that UAE businesses must follow is tied to the taxable supply date. The key is to ensure that the invoice is issued within 14 days from the date of supply.
3. What if the e invoice is submitted late?
If the invoice is submitted late, it could lead to issues with compliance, especially if the VAT return is submitted in the wrong tax period.
4. Is the 14-day rule applicable to all businesses?
The 14-day rule is applicable to all VAT-registered businesses that make taxable supplies in the UAE. In case a business is not VAT-registered, the above VAT invoicing rule will not be applicable in the same manner.
5. Will the rules regarding timing become more stringent in structured e-invoicing?
Yes. After the complete implementation of structured e-invoicing, the process of document preparation and transfer will be tracked through the system. The date of e-invoice submission, as viewed by the UAE government, will be recorded through the system, making the timing rule more prominent.