A quotation is often the first document a customer sees from your business. A clear one wins the job faster and prevents arguments later about price, scope or payment. This guide covers what a quotation for UAE customers should include and how to set one up in Excel or Word.
Quotation, proforma or tax invoice?
- Quotation: an offer. It says what you will supply, at what price, and for how long the price is valid. The customer can accept, negotiate or ignore it.
- Proforma invoice: a preview of the final invoice, often used when the customer needs to pay in advance or open a letter of credit.
- Tax invoice: the document you issue after the sale if you are VAT-registered. It is the one your customer uses to recover VAT.
A quotation is not a tax invoice, so you should not label it as one. Once the customer accepts, issue a proper tax invoice.
What to include
- Your business details: trade name, address, phone, email and logo.
- Your TRN if you are VAT-registered, so the customer can see VAT will be charged.
- Customer details: company name, contact person and address.
- Quotation number and date. A simple pattern such as the date plus a sequence (for example 20261102-01) makes quotes easy to find later.
- Item table: description, quantity, unit, unit price and line total. Be specific: model numbers, sizes, brands.
- Subtotal, VAT and total. Show VAT as a separate line. The standard UAE rate is 5%.
- Validity: for example "Valid for 15 days". Prices for imported goods and freight change, so a validity date protects you.
- Payment terms: advance percentage, balance on delivery, credit days or PDCs.
- Delivery terms: delivery time, where prices apply (for example ex-warehouse or delivered), and who pays freight.
- Exclusions: what is not included, such as installation or customs clearance.
- Acceptance: a line for the customer's signature and stamp, or a request to reply with a purchase order.
Common mistakes
- Leaving out the validity date, then being held to an old price months later.
- Showing a total "inclusive of VAT" without splitting out the VAT amount.
- Vague descriptions that lead to disputes on delivery.
- No follow-up. Most quotations are won or lost in the follow-up call.
Follow up on every quote
Keep a simple list of every quotation you send: customer, value, date sent, follow-up date and result. Over a few months it shows your win rate and which customers and products convert best.
Templates that do this for you
- Quotation Template (Excel): line totals, discount, VAT and total calculate automatically.
- Quotation (Word): a formal quotation with item table, VAT, totals, validity and terms.
- Quotation Follow-Up Tracker (Excel): track every quote, follow-up date and win rate.
- Tax Invoice (Word): issue the VAT invoice once the quote is accepted.
See all invoice, quotation and receipt templates.
This guide is general information, not tax advice. Check the current VAT rules with the UAE Federal Tax Authority or your accountant.