Understanding Invoice Attestation Requirements According to Cabinet Resolution No. 38 of 2022

Written By Akshaya Ashok, Reviewed By Reyees K P

Published on 15/11/2024

In an attempt to enhance trade laws and suppress fraudulent activities, the UAE implemented Resolution No. 38 of the Cabinet of Ministers of the year 2022, which seeks to require the endorsement of MOFA for any submission of invoices amounting to more than AED 10,000. This important rule is affecting all businesses in one way or another and hence it is important to understand the MOFA attestation guidelines properly. Otherwise, nonadherence will have dire repercussions that may include fines and legal penalties. Consequently, it warrants businesses to understand the purpose of MOFA attestation properly to comply with the laws of the country in their business and protect themselves.

Importance of MOFA Attestation

MOFA (Ministry of Foreign Affairs and International Cooperation) certificate in UAE is a must for users who are into the business of international trading. Here are the chief factors for the importance of this attestation:

Authenticity and Validity of Invoices and Certificates of Origin (COO):

MOFA attestation is done to assure the genuineness of trade-related documents like invoices and certificates of Origin in the case of delivery arguments. This is important, especially for the international customs processes in the UAE. Here, there is a prevention of these documents from going to waste by enhancing the availability of new laws. Thus moving goods in and out of the country at times becomes faster alleviating the issues causing loss in international trade.

Protection Against Compliance Risks:

Attestation ensures the operations carried out are within the requirements of the law thus in late compliance risks are minimized which are the causes of instances such as delays and imposition of fines freeze of the goods to this cause incomplete documentation processes goods in and out. This is even more important when it comes to international trade as even a single document misstep can bring the entire trade process to a complete halt leading to the loss of millions.

Building Confidence with the Local Institutions:

The fact that the presented documents are confirmed to be genuine encourages the local authorities to approve the applications. This trust enhances the relations between the businesses and so there are hardly any obstacles to the deals, which are a precondition for the development of such relations.

Cabinet Resolution No. 38 of 2022: Aspects

Invoices of Total Value Exceeding AED 10,000 to Be Attested:

Commercial invoices for imported goods priced at AED 10,000 (approximately USD 2,723) and above must be attested as per Cabinet Resolution No. 38 of 2022. This measure enhances clarity and promotes adherence to the import regulatory process put forth by authorities in the United Arab Emirates.

Focus on Cross-Border Transactions and High-Value Imports/Exports:

The objective of the resolution is to deal with the commodities, which have high volumes of imports as well as exports. It requires strict adherence and proper documentation over all the major transactions and dealings within the trade sector in line with UAE regulations.

Consequences for Violating this Law:

Organizations that do not comply with the attestation requirements shall incur monetary fines, to the effect that for every invoice, that is either unlinked or unattested, there is a fine of AED 500. It also restates the need to follow these rules and avoid incurring these penalties.

How to Meet MOFA Attestation Requirements

To accomplish the requirements of the MOFA (Ministry of Foreign Affairs) attestation, one needs to follow these organized steps:

Determine Relevant Invoices and Certificates of Origin (COOs):

Ascertain which documents are to be attested based upon their type and also their worth as mentioned in certain within. To exemplify, it is now a must that every invoice that is over AED 10,000 be stamped. In addition, necessitates that any COOs that are in triangular trade are part of this identification as well.

Seek for MOFA Attestation From the Authorized Service Centre:

Contact practitioners who are authorized to carry out attestation of documents. Such providers will walk you through the processes, including:

• Initial Attestation: Ensure all the documents are attested by appropriate bodies (e.g. Educational certificates by HRD, commercial papers by Chamber of Commerce).
• Embassy Attestation: If necessary and before sending it to MOFA, attestation by the embassy of the country to which the documents will be taken is obtained.
• Final MOFA Attestation (Submitting the documents to MOFA for attestation as signing a verification process): Over such submitted documents, insert the stamped seal.

Maintain Compliance Documentation:

Every document that is attested and the interactions related to it must be carefully compiled. This involves the following: 

• The original documents are kept.
• Invoices or bills from providers.
• Any letters or notes directed at government agencies or embassies.
• Such records will be important for purposes of record-keeping as well as for information concerning the local laws and regulations.

Benefits of MOFA Attestation

Guarantees Adherence to Laws and Regulations

As such, the process of MOFA stamping is an important element in the operation of many businesses in the UAE from a regulatory standpoint. Attesting invoices and documents before the Ministry of Foreign Affairs is a way of assuring the authorities that the respective company respects the norms of the UAE. This in turn ensures that no legal issues such as lawsuits, fines, or damage to image occur thus protecting and enhancing businesses.

Enhances Trustworthiness and Openness

An MOFA attestation helps in elevating the trustworthiness and openness of the company highlighting to its stakeholders that the company is a responsible and honest business. Attested documents and invoices help in proving the legitimacy of the transaction to the customer, the supplier, or any other party. This in turn retains the trust and increases the confidence of the business partners making it easier to work with them on other projects.

Assists in Overcoming Barriers in Trade Transactions

MOFA attestation eases the process of carrying out international trade activities by confirming that invoices and documents are genuine. Such simplification would therefore result in smooth customs clearance, little delays, and low chances of the goods being stuck at the ports. Thanks to attested documents, international business can be done effectively and at minimal costs by managing the supply chain effectively. This helps especially in managing the trade as opportunities for business expansion are efficiently utilized.

Conclusion

In all businesses operating in the UAE attestation of documents by MOFA is very important due to compliance, credibility, and efficiency. Cabinet Resolution No. 38 of 2022 requires the attestation of invoices that are over AED 10,000 and failure to do so attracts severe penalties. The specialists of Reyson Badger and our colleagues assist in undertaking this process ensuring the regulatory obligations of your business are adhered to. Don't wait any longer! It's time to take action and meet the requirements of Cabinet Resolution No. 38 of 2022. By doing so, you can protect your business from costly sanctions, keep operations

Written By

Akshaya Ashok

Akshaya Ashok is a content writer specializing in creating content focused on accounting and auditing. With over two years of experience, she has developed expertise in crafting professional content for the financial sector.