How to invoice as a freelancer in the UAE

Only a VAT-registered business can charge VAT or issue a tax invoice (Article 65 of the VAT Decree-Law). Until you register, your invoice must not add VAT, show a VAT rate or be titled "Tax Invoice".

No UAE law prescribes what an ordinary invoice must contain. In practice a clear invoice includes:

• your name or trade name, and your licence or permit number,
• your client's name and address,
• a unique invoice number and the issue date,
• a description of the work, with dates or milestones,
• the amount and the currency,
• the payment terms and due date, and
• how to pay: bank name, account name and IBAN, or a payment link.

The thresholds that apply to companies apply to individuals doing business. Registration is mandatory when your taxable supplies exceeded AED 375,000 over the previous 12 months, or are expected to exceed it in the next 30 days (Article 13 of the VAT Decree-Law and Article 7 of the Executive Regulation). You must apply within 30 days.

You may register voluntarily once your taxable supplies, or your standard-rated expenses, exceed AED 187,500 (Article 17 of the Decree-Law and Article 8 of the Executive Regulation). Registering lets you recover VAT on business costs, but you must then charge VAT and file returns.

Each invoice for a taxable supply becomes a tax invoice and must be issued within 14 days of the supply. It must show the words "Tax Invoice", your TRN, your client's TRN if they are registered, and the other particulars in Article 59(1) of the Executive Regulation, with the VAT in AED.

If you invoice in US dollars or another currency, the VAT must still be shown in AED with the exchange rate used.

An individual's business income is subject to corporate tax, and they must register for it, once total business turnover exceeds AED 1 million in a calendar year (Article 2(1) of Cabinet Decision No. 49 of 2023). Salary, personal investment income and unlicensed real estate investment income are not counted.

The e-invoicing system applies to any person conducting business in the UAE unless the person or the transaction is excluded (Article 3 of Ministerial Decision No. 243 of 2025). For revenue below AED 50 million, an Accredited Service Provider must be appointed by 31 March 2027 and the system used from 1 July 2027. The Minister may issue a decision excluding categories of persons, so check the Ministry of Finance e-invoicing page before you plan around it.