Quotation vs Invoice: What’s the Difference in the UAE?

Published: 8 Dec 2025

Many small businesses and freelancers in the UAE use the words quotation and invoice interchangeably — but they are completely different documents with different purposes.

Understanding the difference helps you look more professional, avoid confusion with clients, and get paid faster.

Here is a simple breakdown of both documents and when to use them.

What Is a Quotation?

A quotation is an offer. It tells the client:

What you will provide
How much it will cost
Any terms or conditions

The client reviews your quotation and decides whether to approve the work.

When should you use a quotation?

Before work begins
When the client asks for a price
For services and project-based work
When bidding for contracts

👉 Create a quotation: Free Quotation Builder

What Is an Invoice?

An invoice is a demand for payment. It is issued:

After work is completed
After goods are delivered
Or when a payment milestone is reached

A proper UAE invoice usually includes:

Invoice number
Date of issue
Business and client details
Itemized list of services/products
VAT (if applicable)
Total amount due

👉 Create an invoice: Free Invoice Builder

The Core Difference

Quotation = Price offer
Invoice = Payment request

A quotation is for approval. An invoice is for payment.

What About Receipts?

A receipt confirms that the payment has been received.

You send a quotation before work
You send an invoice after completing work
You give a receipt once the client pays

👉 Create a receipt: Free Receipt Generator

Which One Do UAE Businesses Use More?

Both are important, but many clients in the UAE — especially companies — require a quotation before approving any work. Then they require an invoice to process the payment.

Common Mistakes to Avoid

Sending an invoice when the client asked for a quotation
Not using proper formats (WhatsApp text is not a quotation)
Missing VAT details on invoices
No document number — makes tracking difficult

Final Thoughts

Quotations and invoices play different roles in the UAE business process. When you use them correctly, clients take you more seriously and payments become smoother.

Need both documents in one place? Try ZM Softwares — the UAE’s #1 free tool for:

Invoices
Quotations
Receipts

Create Quotation | Create Invoice