UAE - Tax Invoice Exchange Rates
It has been announced that all UAE companies and individuals who raise tax invoices in a currency other than the UAE dirham will have to use the exchange rates approved by the Central Bank as on the date of supply.
Apart from mentioning the foreign currency, the tax invoice should also mention the gross amount and VAT amount in UAE dirham along with the exchange rate applied.
Additionally, businesses which import concerned services from outside the UAE are required to account for VAT under the reverse charge mechanism on the invoice amount in foreign currency, into UAE dirham as per the applicable exchange rate.
The currency exchange rates are updated Monday to Friday and are based on forex rates prevailing at 6pm UAE time each day. In instances where specific markets are closed due to local holiday, then the relevant rate will be the prevailing rate of the previous day at 6pm.
Should you require any international VAT assistance, please contact us.