Key takeaways
- The UAE VAT tax point, called the date of supply, is the earliest of goods being transferred or made available, services being completed, a tax invoice being issued and payment being received (Article 25, Federal Decree-Law No. 8 of 2017).
- A VAT-registered business must issue its tax invoice within 14 days of the date of supply, counted from the tax point and not from the day the customer is billed (Article 67(1) of the Decree-Law).
- When payment arrives or an invoice is issued before delivery, VAT is due only on the amount paid or invoiced (Article 19, VAT Executive Regulation).
- Contracts with periodic payments or consecutive invoices use Article 26: the earliest of the invoice date, the due date shown on the invoice, payment received, or one year after the goods or services were provided.
- The tax point decides which VAT return carries the output tax, and that return is due by the 28th day after the period ends (Article 64(1), Executive Regulation).
What is the tax point for VAT in the UAE?
UAE VAT falls due on the date of supply, the earliest of the events listed in Article 25 of Federal Decree-Law No. 8 of 2017, and that date is the tax point. It fixes the tax period, and so the return, in which you report output VAT. Article 26 covers periodic payments, vending machines and deemed supplies, and Article 67(1) counts the 14-day invoice deadline from the date of supply under either article.
How is the tax point set for goods, services and special cases?
For goods the tax point is generally the date they are transferred or made available, and for services it is the date the work is completed, unless an invoice or a payment comes earlier.
| Situation | Date of supply (tax point) | Legal basis |
|---|---|---|
| Goods transferred under the supplier's supervision | Date of transfer | Decree-Law Article 25(1) |
| Goods transferred without the supplier's supervision | Date the goods are placed at the recipient's disposal | Article 25(2) |
| Goods supplied with assembly or installation | Date assembly or installation is completed | Article 25(3) |
| Imported goods | Date of import under the customs legislation | Article 25(4) |
| Goods supplied on a returnable basis | Date the recipient accepts, or at the latest 12 months after transfer or availability | Article 25(5) |
| Services | Date the services are completed | Article 25(6) |
| Any supply where money or an invoice comes first | Date payment is received or the tax invoice is issued, if earlier | Article 25(7) |
| Contract with periodic payments or consecutive invoices | Earliest of invoice date, due date shown on the invoice, payment received, or one year from provision | Article 26(1) |
| Payment through a vending machine | Date the funds are collected from the machine | Article 26(2) |
| Deemed supply, such as assets held at deregistration | Date of supply, disposal, change of use or deregistration | Article 26(3) |
What happens when you invoice or get paid before you deliver?
An invoice or a payment that arrives before delivery creates a tax point of its own, but only for the amount invoiced or paid. Article 19 of the VAT Executive Regulation (Cabinet Decision No. 52 of 2017) limits the tax due to the extent of the payment or the invoice, and the balance is taxed at its own date of supply.
Here is a hypothetical. Say a SHAMS consulting company files quarterly VAT returns, with its first quarter ending 31 March, and handles three jobs in different ways.
| Scenario | Events | Tax point | Return period | Tax invoice due |
|---|---|---|---|---|
| A: work done, billed later | Work completed 12 March; invoice 20 March; payment 5 April | 12 March (completion) | Quarter ending 31 March | By 26 March |
| B: advance payment | AED 20,000 received 28 March; work completed 10 April | 28 March, for the AED 20,000 | Quarter ending 31 March | By 11 April |
| C: invoice before work | Invoice issued 3 April; work done 20 April; no payment yet | 3 April, for the invoiced amount | Quarter ending 30 June | Issued on the tax point |
These are illustrations, not client cases. In scenario A the customer's late payment delays nothing, because VAT was due on completion.
How do periodic payments, long contracts and retention work?
Article 26(1) sets the date of supply for a contract with periodic payments or consecutive invoices at the earliest of four events: a tax invoice is issued, the due date shown on that invoice arrives, payment is received, or one year passes from when the goods or services were provided. A retainer or a staged construction contract lands here.
Each instalment carries its own tax point, and the one-year backstop means unbilled, unpaid work still triggers VAT after twelve months. The FTA's Real Estate Guide (VATGRE1) applies this to construction: certifying work doesn't by itself trigger the date of supply, and a retention follows the earliest of its payment, an invoice for it, or 12 months from sign-off. The edition we read is dated April 2021, so check tax.gov.ae for a later one.
When must the tax invoice be issued, and what if it's late?
You must issue the tax invoice within 14 days of the date of supply (Article 67(1)), with two exceptions in the Executive Regulation.
| Document | Deadline | Legal basis |
|---|---|---|
| Tax invoice | Within 14 days from the date of supply | Decree-Law Article 67(1) |
| Simplified tax invoice | On the date of supply | Executive Regulation Article 59(13)(a) |
| Summary invoice for several supplies to one customer | Within 14 days of the end of that calendar month | Executive Regulation Article 59(13)(b) |
A late invoice doesn't move the tax point; it breaches the deadline, and Article 76(4) of the Decree-Law provides for an administrative penalty assessment. Penalty amounts are set by Cabinet decision, so check the current schedule on tax.gov.ae.
Which VAT return does the tax point fall into?
Output VAT belongs in the return for the tax period in which the date of supply falls, and that return must reach the FTA by the 28th day after the period ends (Executive Regulation Article 64(1)). The standard tax period is three calendar months, but the FTA can assign another, so confirm yours. The free UAE compliance calendar lists these dates for your company.
Do e-invoicing and the 2026 VAT law changes affect the tax point?
Nothing in the sources we checked changes Articles 25 and 26, but e-invoicing changes how the invoice is issued. Under Ministerial Decision No. 244 of 2025, a business with revenue of AED 50,000,000 or more must implement e-invoicing by 1 January 2027, and one below that by 1 July 2027. Federal Decree-Law No. 16 of 2025, in force from 1 January 2026, lists relief from self-invoicing under the reverse charge, a five-year limit on refund claims and a power to deny input tax linked to tax evasion. Deadlines for appointing service providers may have been amended since the decision.
14 days: the time limit for a VAT-registered supplier to issue a tax invoice, counted from the date of supply under Article 25 or 26. Source: Federal Decree-Law No. 8 of 2017, Article 67(1), checked 13 November 2026.
What most guides don't tell you
- The 14 days is an invoicing deadline, not a condition on the tax point. Article 25(7) has no such condition: an early invoice pulls the tax point forward, and a late one doesn't push it back.
- A document headed "Tax Invoice" that shows VAT creates a payment obligation. Article 65(4) says anyone who issues a tax invoice for an amount must pay that amount to the FTA as if it were due tax, so label quotations and pro formas clearly.
- Output VAT and input VAT run on different clocks. You declare output VAT at the tax point, even if the customer pays in June, while your input VAT recovery generally waits for the supplier's tax invoice and payment (Decree-Law Article 55(1)).
- The tax point also fixes the exchange rate. Article 69 requires the AED amount at the Central Bank of the UAE's rate on the date of supply, not the invoice or payment date.
Which deadlines apply to your company?
Invoice, return and payment dates depend on your registration and tax period. The free UAE compliance calendar is a free calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
Frequently asked questions
How do I handle VAT on discounts and credit notes?
A discount reduces the value of supply when you fund it (Article 28 of the VAT Executive Regulation). If you have already charged VAT, issue a tax credit note within 14 days of the event (Article 62(2) of the Decree-Law).
Do I charge VAT on deposits and advance payments?
Yes, if the payment is for a taxable supply: receipt of payment is a date-of-supply trigger under Article 25, so VAT is due on the amount received and the tax invoice follows within 14 days. Whether refundable money counts as payment depends on the contract terms, so get advice.
How is VAT applied to real estate sales in the UAE?
A sale of real estate is a supply of goods (Article 2(4) of the VAT Executive Regulation), so Articles 25 and 26 apply and instalments can create tax points as they are paid or invoiced. Commercial property is taxed at 5%, the first supply of a residential building within three years of completion is zero-rated, and later residential sales and bare land are exempt (Articles 3, 45 and 46 of the Decree-Law).
How do I deregister from VAT?
Apply to the FTA within 20 business days of the event that requires deregistration (Article 14 of the VAT Executive Regulation). Business assets you still own are treated as supplied immediately before deregistration, and the VAT on them goes into your final return.
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
- Federal Decree-Law No. 8 of 2017 on Value Added Tax, English text as amended (Ministry of Finance): Articles 3, 25, 26, 45, 46, 55, 61, 62, 65, 67, 69, 76
- Cabinet Decision No. 52 of 2017, Executive Regulation of the VAT Decree-Law, English text as amended (Ministry of Finance): Articles 2, 14, 19, 28, 48, 54, 59, 62, 64
- Ministry of Finance, announcement of Federal Decree-Law No. 16 of 2025 amending the VAT Law from 1 January 2026
- Ministerial Decision No. 244 of 2025 on the Implementation of the Electronic Invoicing System (Ministry of Finance)
- Federal Tax Authority, VAT Real Estate Guide VATGRE1, April 2021 edition (copy hosted by VAT Update)
- Nexdigm, article-level comparison of the 2026 VAT Law amendments (interpretation only: the amended articles it lists do not include Articles 25, 26 or 67)
- Federal Tax Authority, VAT guides and public clarifications
Last checked: 13 November 2026
This is general information, not tax or legal advice for your specific situation.