Do You Have to Invoice in AED? UAE VAT Currency Rules

Key takeaways

• A VAT-registered UAE business doesn't have to price its invoices in AED, but the VAT amount on a tax invoice must be expressed in AED (Article 59, Cabinet Decision No. 52 of 2017, as amended).
• When a UAE tax invoice is issued in a currency other than the dirham, Article 59 requires the exchange rate applied to be shown on the invoice.
• For VAT purposes, the FTA's published position, as summarised by EY, is that foreign currency amounts are converted at the Central Bank of the UAE rate on the date of supply, using the rate exactly as published, with no rounding.
• A simplified tax invoice has to show the total consideration and the VAT charged in AED, so a foreign-currency price alone isn't enough there either.
• A tax credit note follows the same logic: its figures must be shown in AED, so a foreign-currency correction still needs a dirham conversion.
• Businesses with annual revenue above AED 50 million have to fully implement e-invoicing by 1 January 2027 (Ministry of Finance, announced 10 May 2026), and the e-invoice data set includes AED VAT fields.

Is it legal to invoice a UAE customer in USD or EUR?

Yes. The sources checked for this guide contain no rule that forces a registered business to price a supply in dirhams, and invoicing in dollars or euros is common for export-facing and USD-based clients. What the VAT rules require is that the tax figures on a tax invoice are also shown in AED, so the FTA can read every invoice in the currency of the tax.

Your commercial contract decides the currency you bill in; the VAT law decides how that invoice has to look. Many companies pick a currency to suit the customer and then add a dirham VAT line.

What does a UAE tax invoice have to show in AED?

A tax invoice has to express the VAT charged in AED, and if any amount was converted from another currency, it has to show the exchange rate used. That requirement sits in Article 59 of the Executive Regulation (Cabinet Decision No. 52 of 2017, as amended, most recently by Cabinet Decisions No. 100 of 2024 and No. 100 of 2025).

Treat the FTA's current consolidated Executive Regulation as the master list of required particulars, because Article 59 has been amended twice since 2024. If you use accounting software, check that its invoice template prints the AED VAT line and the rate; many default templates only print the invoice currency.

Which exchange rate should I use to convert to AED?

Use the Central Bank of the UAE's published rate for the date of supply, copied exactly as published. EY's summary of the FTA's public clarification states that, for invoices from 17 May 2018, the specific Central Bank rate must be used with the same decimal places as published, and that rounding the rate (for example to 3.7) isn't permitted.

The Central Bank publishes a monthly file titled "Exchange Rates against UAE Dirham for VAT related obligations", with a rate for each day. For September 2026, that file lists the US dollar at 3.6725.

3.6725: the Central Bank of the UAE's published US dollar rate against the dirham for September 2026, to be used with all published decimal places for VAT conversions. Source: Central Bank of the UAE, "Exchange Rates against UAE Dirham for VAT related obligations", September 2026, checked 08 November 2026.

Say a Sharjah consultancy invoices a client USD 10,000 plus VAT at the 5% standard rate, and the published rate for the date of supply is 3.6725. This is a hypothetical example, not a real client. The VAT is USD 500, which converts to AED 1,836.25, and the invoice total of USD 10,500 converts to AED 38,561.25. The invoice shows both currencies and states 3.6725 as the rate applied.

How do I issue a compliant foreign-currency tax invoice?

Issue it in the foreign currency, add the AED VAT figure and the exchange rate, and issue it within the time limit that applies to the supply. Article 59 states that a registrant must issue the tax invoice within 14 days of the date of supply, and that simplified tax invoices are issued on the date of supply.

1. Confirm the date of supply for the goods or services.
2. Open the Central Bank of the UAE's monthly VAT exchange rate file and find the rate for that date.
3. Convert the VAT amount (and the total, if your template shows it) to AED using the rate as published.
4. Show the rate on the invoice next to the converted amounts.
5. Issue the tax invoice within 14 days of the date of supply.
6. Keep the invoice and a record of the rate source with your VAT records.

If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company, as a PDF and calendar file, personalised from a few questions.

Does the rule change for credit notes, imports or e-invoicing?

Yes, in four places. Credit notes carry their own AED requirement, imported services and imported goods have their own conversion points, and e-invoicing adds structured currency fields.

• Credit notes: Article 60 requires the correct value of the supply, the difference and the related VAT to appear in AED, so a foreign-currency credit note needs a dirham conversion too.
• Imported services (reverse charge): EY's summary of the FTA clarification says to use the Central Bank rate on the date of supply, and the invoice date may be treated as the date of supply.
• Imported goods: Customs calculates the value from the import declaration; the same EY summary says that where the Customs rate differs from the Central Bank rate, you may use the Customs rate.
• E-invoicing: the Ministry of Finance's mandatory-field list (version 1.1, 28 October 2026) includes an invoice currency field and AED fields for VAT amounts. Entities with annual revenue above AED 50 million had their Accredited Service Provider appointment deadline moved to 30 October 2026, and full implementation is due by 1 January 2027. Other timelines should be checked on the Ministry of Finance site.

What most guides don't tell you

Three points trip up businesses that already issue foreign-currency invoices.

The rate follows the date of supply, not the day you open the software. An invoice issued on the 12th for a supply made on the 3rd should use the rate for the 3rd. Because Article 59 allows up to 14 days between supply and invoice, a template that auto-fills today's rate will produce an invoice that doesn't match the rule whenever you invoice late.

A rounded rate is a different rate. The USD peg makes 3.6725 look permanent, and using 3.67 or 3.7 feels harmless. The FTA clarification, as summarised by EY, says rounded rates aren't permitted, so the VAT amount in AED has to be built from the full published rate.

Your accounting rate and your VAT rate can differ. Many bookkeeping tools revalue foreign-currency balances at a market rate or a monthly rate. That's fine for management accounts, but the AED figure printed on the tax invoice has to come from the Central Bank VAT file. Check that your software lets you set the rate per invoice, and reconcile any gap with an exchange difference entry rather than editing the invoice.

Frequently asked questions

What is a valid tax invoice in the UAE? A valid tax invoice contains all the particulars listed in Article 59 of the Executive Regulation (Cabinet Decision No. 52 of 2017, as amended). Among them, the VAT charged must be expressed in AED, with the exchange rate shown if the amounts were converted.

What is the difference between a tax invoice and a simplified tax invoice? A simplified tax invoice carries fewer particulars than a full tax invoice, and Article 59 limits when a registrant may issue one, including a ceiling of AED 10,000 for supplies to registered recipients as at the September 2025 consolidated text. It must still show the total consideration and the VAT charged in AED.

Can I issue VAT invoices in English only? The sources checked for this guide don't state a language requirement for the invoice text, so confirm with the FTA or a registered tax agent before relying on an English-only template. What they do require is that the VAT figures appear in AED.

How do I handle VAT on discounts and credit notes? A tax credit note has to show the corrected value of the supply, the difference and the related VAT, and Article 60 requires those figures in AED. If the original invoice was in a foreign currency, convert the credit note using the same rules and keep the reference to the original invoice.

Which deadlines apply to your company?

Currency rules are one item among your VAT, corporate tax and e-invoicing dates, and the dates differ by revenue and licence type. The free UAE compliance calendar lists your company's deadlines, personalised from a few questions, as a PDF and calendar file.

About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn

Sources

• Cabinet Decision No. 52 of 2017 (Executive Regulation of Federal Decree-Law No. 8 of 2017 on VAT), consolidated text including amendments to September 2025, Articles 59 to 61: Federal Tax Authority legislation page (read through a third-party copy of the consolidated text: Nexdigm)
• Central Bank of the UAE, Exchange Rates against UAE Dirham for VAT related obligations, September 2026: centralbank.ae
• Ministry of Finance, targeted amendments to e-invoicing system decisions, 10 May 2026: mof.gov.ae
• Ministry of Finance, UAE Electronic Invoice Mandatory Field Requirements, version 1.1, 28 October 2026: mof.gov.ae
• EY Global Tax News, "UAE publishes public clarification on use of exchange rates for VAT purposes", 23 July 2018 (interpretation of the FTA clarification and of Article 69 of Federal Decree-Law No. 8 of 2017): globaltaxnews.ey.com

Last checked: 08 November 2026

This is general information, not tax or legal advice for your specific situation.