Purchase Order Template UAE: Layout with TRN and 5% VAT

A good purchase order template for UAE businesses has your TRN and the supplier's TRN, a PO number, line items with unit price and a 5% VAT line, AED totals, delivery terms and payment terms. A PO is not a tax invoice, but it should carry the same details the supplier will later put on the invoice. That way the invoice matches the order and nobody chases corrections.

This post gives you a copy-ready layout, a worked VAT example and the mistakes that cause invoice disputes.

What should a purchase order template UAE buyers use contain?

It should contain the fields below. The first group is general. The second group mirrors what the FTA requires on a tax invoice, so your supplier can invoice you correctly without asking questions.

The FTA's tax invoice guide (VAT11) says a valid tax invoice shows the words "tax invoice", the issue date, the supplier's name, address and TRN, and the recipient's name and address (plus their TRN if registered). It also needs a description of the goods or services, a unique invoice number, and per line the unit price, quantity, VAT rate and amount payable in dirhams. Finally it shows the gross amount and total VAT in dirhams.

What does the layout look like?

Copy this into Excel, Word or Google Sheets. Keep the order of the blocks.

PURCHASE ORDER PO No: PO-2026-0143
Date: 03/11/2026 Revision: 0

BUYER SUPPLIER
Company name: Company name:
Address (Makani / street, emirate) Address:
TRN (15 digits): TRN (15 digits or "Not registered"):
Contact + email: Contact + email:

REF: Supplier quote no. ____ dated ____

# | Code | Description | Qty | Unit | Unit price AED | VAT % | VAT AED | Line total AED

Subtotal (AED):
Total VAT (AED):
Grand total (AED):
Currency / agreed rate (if not AED):

DELIVERY
Incoterm and named place: Delivery address:
Required date: Partial shipments: Yes / No
Documents required: tax invoice, packing list, delivery note, COO if needed

PAYMENT
Terms: e.g. 30 days from tax invoice date
Method: bank transfer / cheque
Bank details are confirmed on the supplier's invoice, not on this PO

Notes / quality / warranty:
Authorised by: Date:

Add your trade licence number if your suppliers ask for it. It is common practice in the UAE, but it is not part of the FTA invoice list.

How do you show 5% VAT on a purchase order?

Show the VAT rate and VAT amount on every line, then total them. Most goods and services in the UAE are standard-rated at 5%. Some are zero-rated at 0%, and others are exempt. Confirm any unusual line with the FTA or your tax advisor.

The difference matters. According to BCL, zero-rated supplies carry 0% and the input tax stays recoverable. Exempt supplies carry no VAT and the input tax cannot be recovered. Examples of zero-rated supplies often include exports and international transport.

Here is a hypothetical example. Say a Dubai trading company orders 200 units of a product at AED 45 each from a supplier in Sharjah. It also books international freight on the same PO, which the supplier says is zero-rated.

If you used one flat 5% on the whole PO, you would show AED 510 of VAT and the supplier's invoice would not match. Per-line rates avoid that. The figures above are only an illustration.

What if the supplier has no TRN?

Write "Not registered" in the TRN field and ask them to confirm it in writing. The threshold to register is generally AED 375,000 of taxable turnover in 12 months, so small suppliers may have no TRN. Check the current threshold on the FTA site. Do not add 5% on your side for a supplier that is not registered.

What if you buy in USD or another currency?

Put the currency and agreed exchange rate on the PO, with the AED equivalent. The FTA guide says the tax invoice shows amounts in dirhams, with the exchange rate where relevant. A PO that states the rate removes an argument at payment time.

What delivery terms and payment terms should you write?

Write the delivery terms as an Incoterm plus a named place, and write payment terms as a number of days from a clear starting event. Vague wording is what causes disputes.

Delivery terms

• Imported goods: use an Incoterm with a named place, such as "DAP Jebel Ali" or "FOB Shanghai". Say who books the freight, who clears customs and who insures the cargo.
• Local goods: give the full delivery address, the contact person, the receiving hours and the date.
• State whether partial shipments are allowed.
• List the documents you need: tax invoice, packing list, delivery note, certificate of origin where relevant.

Payment terms

• Start the clock on a clear event, for example "30 days from the date of the tax invoice" or "50% advance, 50% on delivery".
• Name the method: bank transfer or cheque.
• Say that payment is made against a valid tax invoice. A proforma invoice is not a tax invoice, and you need the tax invoice to claim input VAT. Confirm the wording on the FTA site.
• Keep bank details on the supplier's invoice. Changed bank details sent by email are a known fraud route, so confirm any change by phone with a known contact.

Specific payment days are a commercial agreement. No rule here fixes them for you.

Is a purchase order the same as a tax invoice?

No. A PO is your offer to buy on set terms. A tax invoice is the supplier's document for the sale, and it must meet the FTA's requirements. You cannot claim VAT on a PO.

One point to know: the FTA guide allows the buyer to issue the invoice if both sides agree (self-billing). That invoice must meet the full tax invoice rules and show the words "buyer-created tax invoice". A normal PO does not do this.

How do you issue a PO step by step?

1. Get a written quote with the supplier's TRN, unit prices and validity date.
2. Check the quote against your own price list or last PO.
3. Fill in the template. Copy the supplier's legal name and TRN exactly as they appear on their quote or last invoice.
4. Set the VAT rate on every line and let the sheet calculate the totals.
5. Add Incoterm, delivery date and payment terms.
6. Get internal approval from someone other than the person who raised it.
7. Send the PO as a PDF and ask the supplier to confirm it in writing.
8. When goods arrive, match the delivery note, the PO and the tax invoice before you pay.

What mistakes cause PO and invoice mismatches?

• Missing TRN. The supplier invoices without yours, or with the wrong company name.
• One flat VAT rate. Zero-rated or exempt lines get taxed, or the reverse.
• Prices in foreign currency only. Nobody agrees the AED amount.
• No PO number on the invoice. Accounts cannot match it and payment stalls.
• Verbal changes. Quantity or price changes by phone, with no PO revision.
• Using the PO as proof for VAT. Only the tax invoice counts.

When does a spreadsheet stop being enough?

A spreadsheet works for a handful of POs a month. It struggles when you have many suppliers, several buyers and quotes to compare. You then need version control, approvals and a record of which quote became which PO.

Quickship's Sourcing module is built for that. It handles RFQs, supplier quotes and purchase orders in one place. Quickship is software only. It doesn't buy, ship or store anything for you.

Whatever tool you use, start with the layout above. Then check the final version against the FTA's tax invoice guide or ask your tax advisor, because VAT rules can change.