VAT and e-invoicing for car workshops in the UAE
Parts and labour in the example carry VAT at 5%. A simplified tax invoice is allowed when the customer is not VAT-registered or the sale is AED 10,000 or less. Each invoice records the emirate of supply, because the VAT 201 splits standard-rated sales by emirate in boxes 1a to 1g; you enter the figures on EmaraTax.
Sales to individual drivers are outside the e-invoicing phases announced so far. Invoices to fleet operators and other businesses are not: under AED 50M of revenue, you appoint an accredited service provider by 31 March 2027 and transmit from 1 July 2027. Your provider also receives your parts suppliers' e-invoices. Aqid ERP generates each invoice as signed PINT AE XML today; its connection to a provider is in progress and not yet live.
When you import parts as a registered business, the import VAT is declared in Box 6 and, where the normal rules allow, recovered in Box 10. Check Box 6 against the figure the FTA pre-fills from customs data.