Debit notes do not exist in UAE eInvoicing: what to issue instead

In short

The UAE eInvoicing system has no debit note. When an amount goes up, the seller issues a new tax invoice. When money is owed to you, you issue the invoice; the other side does not send you a debit note. The team that raises your debit notes today switches them to invoices, or keeps them as internal vouchers.

Why eInvoicing needs it

The UAE eInvoicing format lists the document types it accepts: tax invoice (type 380), tax credit note (381), commercial invoice out of scope of tax (480), credit note out of scope of tax (81), and the self-billing pair. The international debit note code (383) is not in the list, so a debit note cannot be sent.

The VAT Law already works this way. Article 62(1) says that where the VAT due on a supply is more than the VAT the seller charged, the seller issues a new Tax Invoice for the extra. There is no "tax debit note" in the law.

The rule of thumb is simple: the party that receives the money issues the invoice. The party that pays it records the cost in its own books.

What good looks like

All examples use Al Noor Trading LLC as your company.

Scenario	Before	After
Price increase after invoicing (the customer agreed to pay more)	Debit note to the customer	New tax invoice (380) for the difference, naming the original invoice and its date
Extra charges after invoicing (freight, handling, late delivery fee)	Debit note to the customer	New tax invoice for the charges, VAT as for that charge, naming the original invoice
Recharge to a customer (rent, utilities, costs you paid for them)	Debit note	Tax invoice for the recharge. If you only paid a fee on the customer's behalf as its agent, Calculus treats it by default as an out-of-scope invoice (480); keep proof you paid in the customer's name, and confirm with your tax advisor if your facts differ
A supplier owes you money (a rebate, a penalty, a shortfall)	You send the supplier a debit note	You issue an invoice to the supplier for the amount owed to you; or, if it is a reduction of the supplier's own invoice, the supplier issues a credit note to you
Demurrage or despatch owed to a supplier or ship owner	The supplier waits for your debit note, or you send a "credit note"	The supplier bills you with its own invoice. You do not issue anything
Demurrage or despatch owed to you	You send a debit note	You issue an invoice for the amount owed to you
Purchase return to a supplier	Debit note to the supplier, sent as the tax document	Keep your debit note as an internal voucher. The supplier issues the electronic credit note to you

Whether demurrage, despatch, penalties or rebates carry 5% VAT, zero or none depends on the contract and where the vessel or goods are. Calculus sets the VAT category per contract with you; confirm with your tax advisor if your facts differ.

How to fix it in Tally

1. Stop using the Debit Note voucher for anything you send to a customer. Raise extra charges and increases as a Sales voucher in your normal invoice series.
2. On that Sales voucher, use Agst Ref in the bill-wise details to link it to the original invoice, and type the original invoice number and date in the narration until your Tally partner adds dedicated fields.
3. For amounts a supplier owes you, raise a Sales voucher to the supplier's ledger (or ask your Tally partner for a separate voucher type for these). This is your invoice to them.
4. Keep the Debit Note voucher for purchase returns and supplier claims in your own books. Mark this voucher type so it is left out of the eInvoicing export.
5. Tell your suppliers to send you an electronic credit note for every return or price reduction on their invoices.

How to fix it in Excel or another system

Remove the debit note template from what you send. Use your invoice template, with these columns filled when the invoice increases an earlier one:

Column	Format	Example
Document type	380	380
Preceding invoice number	Text	ANT-2027-0154
Preceding invoice date	YYYY-MM-DD	2027-03-12
Line description	Text	Additional freight, invoice ANT-2027-0154

If you use an ERP, ask your ERP partner to map customer debit notes to tax invoices and to keep vendor debit memos out of the eInvoicing feed.

Checklist

• No debit note goes to a customer; increases are new tax invoices.
• Each increase names the original invoice and its date.
• Money owed to you is billed by you, as an invoice.
• Purchase debit notes stay internal; suppliers send you credit notes.
• Suppliers know your Peppol ID so their invoices and credit notes reach you.

The law

• Federal Decree-Law No. 8 of 2017 on Value Added Tax, Article 62(1): where the VAT due is more than the VAT calculated, the registrant issues a new Tax Invoice for the additional tax. UAE Ministry of Justice legislation portal
• VAT Law, Article 62(2) and Article 70(1): reductions use a Tax Credit Note, issued by the supplier.
• Peppol PINT AE Billing, section 1.5.1: the accepted document types are 380, 381, 389, 261, 480 and 81; no debit note type is listed. PINT AE specification
• Ministerial Decision No. 243 of 2025, Article 6(2): the Issuer of the original transaction issues the Electronic Credit Note to the Recipient. MoF PDF
• MoF UAE Electronic Invoicing Guidelines, section 10.1: the document categories under standard billing and self-billing. MoF PDF