Credit note template UAE: fields and VAT effect

A tax credit note is a tax document in its own right. After the 2025 amendment it is enough to show the credit amount and the VAT on it; the previous requirement to show the original value, the corrected value and the difference was removed. Most businesses still show the reference to the original invoice and a reason, because customers and auditors expect them.

• A title identifying it as a tax credit note, and a sequential number
• Supplier name, address and TRN
• Customer name, address and TRN
• Date of issue
• Number and date of the original tax invoice
• Reason for the credit, such as goods returned or price corrected
• Credit amount before VAT, VAT credited in AED and total credit

The supplier reduces output tax, and a registered customer reduces input tax, in the return for the period in which the credit note is issued. You do not go back and amend the return that included the original invoice. Keep the credit note with the original invoice so the trail is easy to follow if the FTA asks.

A building materials supplier in Ajman takes back damaged tiles.

• Title: Tax Credit Note CN-2026-037, issued 16 October 2026
• Supplier: Emirates Stone & Tile Trading LLC, Ajman, TRN 100XXXXXXXXX005
• Customer: a fit-out contractor in Ajman, TRN 100XXXXXXXXX008
• Original invoice: INV-2026-0912 dated 2 October 2026
• Reason: 60 square metres of porcelain tiles returned damaged
• Credit: 60 × AED 48.00 = AED 2,880.00, VAT credited AED 144.00, total credit AED 3,024.00

Open the original invoice and choose to credit it, in full or by line. HelloBooks carries over the customer, the TRN and the VAT treatment, and posts the reversal to sales and the VAT control account, so the next VAT 201 working shows it automatically. The AI agent also offers to apply the credit against the customer's open invoices or to record a refund.

Credit notes move into e-invoicing along with invoices, so keep the reason and reference fields complete now. Your accountant approves each credit before it is sent. If you need a credit note approval rule above a set value, the team can configure it on request.