Free UAE Tax Credit Note Template in Excel, Google Sheets, Word and PDF

Last updated: November 12, 2026

What Is a Tax Credit Note?

Twelve items come back on a Monday. Four damaged chairs, eight lamps nobody ordered.

You refund the customer. Done? Not quite. Your VAT return still says you sold them.

A tax credit note is the document a VAT registered supplier in the UAE issues to reduce or cancel a supply already billed on a tax invoice. It must show the words "Tax Credit Note", both TRNs, the original and correct values, the VAT difference in AED and the reason, and it must go out within 14 days of the event.

That's the tax credit note meaning in one paragraph. The VAT law calls it "a written or electronic document in which any amendment to reduce or cancel a taxable supply and its details are recorded". In Arabic it's إشعار دائن ضريبي. Accountants also call it a VAT credit note in the UAE, a credit memo, or simply "the CN".

Notice what it isn't. It isn't an edit to the old invoice. It isn't a refund receipt. And it isn't the fix when you charged too little VAT. Each of those has its own document, which the next table sorts out.

Tax Credit Note vs Credit Note vs New Tax Invoice in the UAE

Five documents get mixed up here, and picking the wrong one costs you either VAT or a penalty.

Overcharged? Issue a tax credit note. Undercharged? Issue a new tax invoice. There's no "tax debit note" in UAE VAT law.

That last line settles the credit note vs debit note UAE question. Article 62 of the VAT law gives two routes and only two. For the invoice itself, start with our UAE invoice template.

Which Credit Note Format Fits Your Situation?

Start with the event, not the form. The right credit note format UAE businesses need depends on what happened and who you are.

What Does a UAE Tax Credit Note Contain?

A sound tax credit note format starts with these credit note requirements, the ones the UAE FTA works from. Article 60 of the Executive Regulation sets the core list, and the template adds the fields that make it easy to defend later.

The field that matters most is the original invoice reference. It's what ties your output tax reduction to a sale the FTA can already see. Under e-invoicing, it stops being good practice and becomes part of the data structure itself.

What the Enerpize UAE Tax Credit Note Template Includes

We built this template from the law up. Article 60 gave us the fields. Articles 61, 62 and 63 of the VAT law gave us the logic. Then we added what a finance team actually trips over: the 14-day clock, the second credit note on the same invoice, and the note a supplier sends you. It runs on formulas only, with no macros, and yellow cells are the only ones you type in.

A Stopwatch That Starts at the Event

Enter the date the goods came back or the price changed. The note works out the issue-by date and tells you "On time: 7 days", "Due in 3 days" or "Late by 7 days". Eight checks run before you send: both TRNs, the invoice reference, the reason, the deadline, undercharged lines, the exchange rate and at least one credited line.

A Tripwire for Undercharges

Enter a correct value that's higher than the invoice value and the line turns red: "Undercharged: issue a new tax invoice". It stays out of the totals, so you can't accidentally credit a customer you actually undercharged.

A Running Balance for Every Invoice

Since November 2024, a second credit note on the same invoice has to start from the value left after the first one. The Credit Note Log does that sum for you, row by row, and flags any credit bigger than what's left on the invoice.

Both Sides of the Return, Side by Side

Log the notes your suppliers send you too. The VAT Summary splits every tax period into output VAT reduced and input VAT reduced, and counts the notes you issued late. It handles quarterly or monthly filing, and periods that start in any month.

Two Languages on One Header

The printed tax credit note format carries TAX CREDIT NOTE and إشعار دائن ضريبي side by side, with every amount converted to AED at the rate you enter.

The Five Events That Trigger a Tax Credit Note

Article 61 of the VAT law lists the cases where you adjust output tax after the supply. Each one has its own reason in the template's dropdown.

One more rule sits beside these. Article 62 says the note is only for when the VAT you charged was too high. The day after you spot an undercharge, you need a new tax invoice instead.

Example: A Filled UAE Tax Credit Note

Want to see the numbers move before you type anything? Make your own copy of the filled sample in Google Sheets. It follows a fictional Dubai trading company, Cedar Street Supplies LLC, from February to July 2027: 9 notes issued, 3 received, quarterly VAT periods starting in February. The screens on this page use the same sample data.

How to Read the Sample

Reading about what is a tax credit note only goes so far, so open the Tax Credit Note sheet. Palm Grove Interiors bought 24 chairs and 60 lamps on invoice INV-2027-0418. On 15 March, 4 chairs and 8 lamps went back.

The note went out on 22 March. That's 7 days after the return, inside the 14. Every check reads OK.

Now open the log and follow the same invoice. In June, Palm Grove got a volume rebate of AED 2,162. That second note starts from AED 43,240, not 48,000, and leaves AED 41,078 on the invoice.

Then find TCN-0008. A cancellation on 2 April, a note on 23 April: 21 days, flagged Late. And TCN-0009 shows "Check TRN", because the customer's TRN has 14 digits. One note you received, GFT-CN-131, is dated 29 April but arrived on 3 May, so its input VAT lands in the May to July period.

Tax Credit Note Formulas

Every formula is built into the Excel file, the same tax credit note format as the printable version. If you want to adapt them, these five do the work.

Difference Before VAT

Difference = Value on Invoice − Correct Value

In plain English: what you billed minus what you should have billed. The chairs give 22,800 minus 19,000 = 3,800.

VAT on the Difference

=ROUND(Difference * VAT Rate, 2)

Rounded per line. 3,800 x 5% = 190, and 960 x 5% = 48, so the note credits AED 238 of VAT.

Issue By Date

Issue By = Event Date + 14

Calendar days, counted from the event, not from the day accounts heard about it. A return on 15 March is due by 29 March.

Value Left on the Invoice

=Invoice Value − SUMIFS(Earlier Credits, Earlier Invoice Numbers, This Invoice)

This is the starting point for any second or third note. For INV-2027-0371: 86,500 minus 4,325 = 82,175 before the June note.

AED Amounts

Amount in AED = Amount in Invoice Currency x Rate to AED

At the fixed 3.6725 rate, a USD 1,500 credit is AED 5,508.75.

How to Use the UAE Tax Credit Note Template

Ten minutes for the first note, two for every one after. Here's the routine.

1- Set Up Once

Enter your business name, address and TRN in Settings, then the first day of a tax period and whether you file quarterly or monthly. Every sheet reads from here.

⚡ Tip: Copy your TRN from your EmaraTax certificate. One wrong digit fails the TRN check on every note.

2- Pull the Original Invoice

Enter its number and date before anything else. The note exists to correct that one sale, so start from it.

⚡ Tip: Search the log for the invoice number first. If an earlier note exists, start from the value it left.

3- Date the Event

Enter the day the goods came back, the price changed or the order was cancelled. The template counts 14 days from there.

⚡ Tip: Keep the email or delivery note that proves the date. It's your evidence if the timing is ever questioned.

4- Enter What Changed, Line by Line

For each line, enter the invoiced quantity and price, then the correct ones. Leave a correct field blank if it didn't change.

⚡ Tip: Credit only the lines that changed. Unchanged lines just add noise to the note.

5- Clear the Checks

Read the eight checks under the lines. Fix anything that isn't OK, especially an undercharged line or a missing reason.

⚡ Tip: A red undercharge line means you need a new tax invoice for that line, not a smaller credit.

6- Send and Log It

Print or save the note as a PDF, send it to the customer, then add one row to the Credit Note Log.

⚡ Tip: Log supplier notes you receive the same day, with the date they reached you.

7- Check the Period Before You File

Open the VAT Summary before each return. Compare the output and input VAT reduced with what you're about to declare.

⚡ Tip: Any late notes show in red. Find out why before the next one is due.

Common Tax Credit Note Mistakes

Most credit note problems aren't technical. They're habits.

Importance of a UAE Tax Credit Note Template

Why bother with a template for a document you might issue twice a month? Because since 14 April 2026, failing to issue a tax credit note within the legal period costs AED 2,500 per detected case under Cabinet Decision No. 129 of 2025.

A VAT credit note in the UAE is a small document with a real price tag. Two late notes in a quarter is AED 5,000. That's often more than the VAT on the notes themselves.

Keeps Output Tax Honest

Without a note, you keep paying VAT on a sale that shrank. In the sample, the February to April notes cut output VAT by AED 2,289.69.

Protects Your Customer's Return Too

The buyer needs your note to reduce their input tax. A missing note leaves them overclaiming, and that problem tends to find its way back to you.

Builds an Audit Trail

Invoice, event, note, log, return. Each step points to the one before, so an audit question takes a minute instead of a week.

Gets You Ready for E-Invoicing

From your go-live date, credit notes travel as structured data. Teams that already record the invoice reference, reason and AED totals every time have far less to change.

Spreadsheet vs Software for Tax Credit Notes

A template is a great fit when you issue a VAT credit note in the UAE a handful of times a month. Volume changes the answer.

How Enerpize Handles Credit Notes

What happens to a credit note after you send it? In a spreadsheet, nothing, until you post it yourself. Enerpize keeps the note, the invoice it corrects and the accounting entry in one chain. The screens below use sample data.

Sales Credit Notes: Every Note in One List

Credit notes sit under Sales, next to invoices and refund receipts. Pick the client, choose the items, set the tax on each line, preview, then save and email it or print it. Search the list by client or invoice number. It's part of Enerpize invoicing.

Start From the Invoice, Not a Blank Page

Open a purchase invoice, choose More Options, then Create Credit Note. The note starts from that invoice, so the reference you'd otherwise type is already there.

Every Note Stays Tied to Its Invoice

On the purchase side, the invoice gets a Credit Notes tab listing every note against it, and each note links back to its invoice. Two notes on one invoice? Both show, with dates and amounts.

Tax on Every Line

Each line carries its own tax columns. VAT is supported by default, and you can edit the tax name and rate in tax settings. Invoices can be issued in more than 135 currencies.

The Ledger Updates Itself

Save a note and Enerpize accounting posts its journal entry, with a View Source link back to the note. An activity log on each note shows who changed what and when.

Switch It On, Number It Once

Credit notes are turned on in settings, with their own automatic numbering, so every note gets the next number in sequence.

Ready for Your ASP

Enerpize isn't an Accredited Service Provider, so it doesn't transmit to the FTA. It prepares the invoice data, an XML file and supporting reports for the ASP you appoint, with credit notes linked to the original invoice. Our guide to e-invoicing in the UAE covers the rest.

What UAE VAT Law Requires on a Tax Credit Note

The rules sit in three places, and they've moved twice in two years.

Article 70 of the VAT Decree-Law makes a registered supplier issue an original note and deliver it to the recipient. For a deemed supply, the supplier issues the note and keeps it in its own records instead. Article 60 of the Executive Regulation lists the contents, and those credit note requirements apply to every registrant. Cabinet Decision No. 149 of 2026 corrected its first item so the "Tax Credit Note" label clearly refers to the credit note itself, and left the other content requirements as they were.

FTA Decision No. 7 of 2019 adds two practical points. Tax invoices and credit notes for different supplies can share one document headed "Tax Invoice/Tax Credit Note". And a mailing address can stand in for a physical address.

What to add:

• The words "Tax Credit Note" at the top of every note
• Both TRNs, the recipient's only where they're registered
• The value shown, the correct value, the difference and the VAT on it in AED
• A one-line reason and the original invoice reference

⚑ Practical note: An agent that is a registrant can issue a credit note on behalf of its principal, but both sides then need records of each other's name, address and TRN.

The 14-Day Rule and the Penalty for Missing It

Fourteen days sounds generous. It isn't, once a return waits a week in the warehouse before anyone tells finance.

Article 62(2) of the VAT law says the supplier must issue the note no later than 14 days from the date any Article 61 event occurs. Article 76 lets the FTA fine a business that fails to issue the note, or a substitute document, within that time. Under Cabinet Decision No. 129 of 2025, in force since 14 April 2026, that fine is AED 2,500 per detected case.

What to add:

• A rule that warehouse or sales tells finance about a return the same day
• The event date on every note, not just the issue date
• A weekly look at the log's Timing column

⚑ Practical note: The template counts calendar days. If you're unsure how a weekend or public holiday affects a deadline, ask your tax adviser rather than leaving it to the last day.

How a Tax Credit Note Changes Your VAT Return

One note, two returns. Yours and your customer's.

Article 63 of the VAT law treats the tax on a credit note as a reduction of the supplier's output tax, and a reduction of the recipient's input tax for the tax period in which they received the note. In practice, the supplier reduces output tax in the period it issues the note, and the buyer reduces input tax in the period the note arrives.

What to add:

• The issue date on every note you send
• The received date on every note you get
• A check of the VAT Summary against your VAT 201 before you file through EmaraTax

⚑ Practical note: A note dated the last day of a quarter but received two days later belongs in the buyer's next period. That's exactly what happens to GFT-CN-131 in the sample.

Electronic Tax Credit Note Rules Under UAE E-Invoicing

From your e-invoicing go-live date, a PDF credit note stops being the legal document.

Article 70(4) of the VAT law says a registered supplier within the e-invoicing system must issue and deliver it as an electronic credit note. The PINT AE Credit Note specification gives that note its own fields, including the preceding invoice reference, the credit note reason and the total including VAT stated in AED. Electronic Tax Credit Note is one of the six e-invoice document types, starting 1 January 2027 for businesses with revenue of AED 50 million or more and 1 July 2027 for the rest.

Cabinet Decision No. 106 of 2025 adds its own fine: AED 100 for each electronic credit note not issued and transmitted on time, capped at AED 5,000 a month. That sits on top of the VAT penalty above.

What to add:

• The original invoice number on every note, starting now
• A reason picked from a fixed list, not free text alone
• AED totals on notes issued in other currencies
• A check of your plan against our UAE e-invoicing readiness checklist

⚑ Practical note: Use the voluntary phase to send real credit notes through your ASP. Returns and partial credits are where the first validation errors usually show up.

Who Can Use the UAE Tax Credit Note Template?

Trading and Distribution Companies

Returns are routine when you ship pallets. The log keeps every note against its invoice, so the third return on one order doesn't start from the wrong value.

Retail and E-Commerce

Most consumer refunds never need a note to another business, but your B2B accounts do. In a retail business, that's often the trade customer who buys in bulk.

Contractors and Fit-Out Firms

Scope shrinks, rates get renegotiated, items get swapped. Each one is a price change under Article 61 with a 14-day clock attached.

Professional Services

A fee reduced after a dispute is still a supply whose value changed. A consulting firm issues the note exactly as a trader would.

Accounting Firms

Share the template with clients who issue a few notes a month. The VAT Summary gives you the two figures to check before each return.

Tax Credit Note Glossary

Key Takeaways

• A tax credit note reduces or cancels a supply already billed on a tax invoice, and only a VAT registered supplier issues one.
• Issue it within 14 days of the event. Late notes cost AED 2,500 per detected case since 14 April 2026.
• Article 60 asks for the value shown, the correct value, the difference and the VAT on it in AED, plus a reason.
• On credit note vs debit note in the UAE: undercharged VAT needs a new tax invoice, and VAT law has no tax debit note.
• A second note on one invoice starts from what's left. In the sample, AED 48,000 became 43,240, then 41,078.
• The supplier cuts output tax when it issues the note. The buyer cuts input tax in the period it receives it.
• From 1 January 2027 or 1 July 2027, depending on your revenue, credit notes go electronic, and each electronic tax credit note not transmitted on time costs AED 100.
• The sample's first quarter of notes cut output VAT by AED 2,289.69, so a missed note costs real money.

Frequently Asked Questions

What must a tax credit note include in the UAE?

The words "Tax Credit Note", the supplier's and recipient's names, addresses and TRNs (the recipient's where registered), the date of issue, the original invoice details, the value shown, the correct value, the difference, the VAT on that difference in AED, and a brief reason. Our template includes every one.

How many days do I have to issue a tax credit note?

14 days from the event that reduced the output tax, such as the return, the price change or the cancellation. Since 14 April 2026, missing the deadline costs AED 2,500 per detected case under Cabinet Decision No. 129 of 2025.

What is the difference between a credit note and a tax credit note?

A tax credit note is issued by a VAT registered supplier and changes the VAT on a supply. A plain credit note reduces an amount owed without any VAT effect, for example from a business that isn't VAT registered. Only the tax version reduces output and input tax.

Is there a debit note under UAE VAT law?

Not for VAT purposes. If you charged too little VAT, Article 62 asks you to issue a new tax invoice and account for the extra tax in the period you found the error. Businesses can still use debit notes commercially, but they don't adjust VAT on their own.

Can I issue a credit note without the original tax invoice?

No. A note corrects a specific supply, so it needs the details that identify that supply, normally the original invoice number and date. Without them, the buyer can't match it and the FTA can't link it to the output tax you declared.

Can the buyer issue the tax credit note?

In limited cases. The Executive Regulation allows a VAT registered buyer to issue it where both parties agree and only one note is issued for the adjustment, marked "Tax Credit Note created by buyer". Under e-invoicing, this becomes a self-billed electronic note.

How does a tax credit note change my VAT return?

The supplier reduces output tax in the period it issues the note. A VAT registered buyer reduces input tax in the period it receives the note. The template's VAT Summary shows both figures for each quarterly or monthly period.

How is a tax credit note handled under UAE e-invoicing?

From your go-live date, it's issued as an electronic tax credit note in PINT AE format and sent through your Accredited Service Provider, with a reference to the original invoice. Each one not issued and transmitted on time costs AED 100, capped at AED 5,000 a month.

About the Author

Omar El Bahr is a Senior Digital Growth Specialist at Enerpize, where he leads SEO, content strategy, and organic growth across international markets. He is a Forbes Communications Council contributor and has written for Entrepreneur on business communication and digital strategy.

Disclaimer

This template and page are general information based on UAE VAT legislation and FTA publications as of November 2026. They are not tax or legal advice, and the template is not an official FTA form. Rules change, so confirm your obligations with the Federal Tax Authority or a qualified tax adviser.