UAE Introduces Legislative Amendments to Support E-Invoicing Mandate
The United Arab Emirates Ministry of Finance recently issued updates to support its upcoming e-invoicing mandate, highlighting the nation's commitment to modernizing tax processes.
These amendments were introduced through Federal Decree-Law No. 17 of 2024, which modifies certain provisions in tax procedure law, and Federal Decree-Law No. 16 of 2024, which addresses aspects of the VAT law.
Main Changes to Support E-Invoicing
The legislative changes set the foundation for a standardized e-invoicing framework across the UAE:
- New Definitions: Updated terminology to align with e-invoicing procedures now clarifies the scope and requirements of the system.
- Input VAT Recovery: Amended Article 55 mandates that taxable persons retain tax invoices compliant with the Electronic Invoicing System for input VAT recovery. This standard applies to all electronic invoices.
- Tax Invoices and Credit Notes: Changes to Articles 65 and 70 specify that taxable entities under e-invoicing must issue all invoices, credit notes, and relevant documents in the electronic format established by the system.
- Penalties for Non-Compliance: Updated Article 76 introduces penalties for failing to issue e-invoices and credit notes on time, reinforcing the mandate’s compliance framework.
With these legislative updates, the UAE aims to streamline tax reporting and bolster compliance as it moves toward full e-invoicing adoption.
There’s more to know about e-invoicing in the United Arab Emirates - explore the new and upcoming regulations.
