UAE's E-Invoicing Initiative: Key Details and Rollout Plans
The UAE government has introduced an official platform for e-invoicing. Managed by the Ministry of Finance, this website will be the central reference point for information and updates on the upcoming e-invoicing mandate, which is set to be implemented in stages starting in the second quarter of 2026.
Phased Rollout of E-Invoicing
The rollout of e-invoicing will occur over a period of time, with businesses transitioning in phases based on set criteria. Full implementation is planned for completion by June 2026, and companies will be given prior notice to comply with the new requirements.
Businesses within VAT groups must connect with a UAE Accredited Service Provider (ASP) to comply with the new regulations. Once the Ministry of Finance publishes the list of authorized service providers, companies will be required to sign agreements with one of them and integrate their systems to handle e-invoices via the Peppol network.
The e-invoicing system will cover both B2B and B2G transactions, irrespective of VAT registration status. After establishing a connection with an ASP, businesses will be able to send invoices electronically through the Peppol network directly to the recipient’s endpoint, simplifying the entire invoicing process.
The Five-Corner Model for E-Invoicing
The UAE will adopt a decentralized five-corner model for e-invoicing, expanding on the previous four-corner model by incorporating the relevant tax authority as a fifth participant. Under this framework, ASPs will be responsible for validating the data on e-invoices, converting them into the XML format required by the UAE's data standards, and transmitting them across the Peppol network.
Tax Data Reporting and Validation
Once the e-invoice is exchanged, ASPs will send the tax data to the Federal Tax Authority (FTA) and the Ministry of Finance. The government platform will confirm that the invoice has been successfully received, ensuring compliance with all regulatory requirements.
Accredited Service Providers will need to meet the UAE's National Cloud Security Policy and adhere to data protection rules specific to their sector. Additionally, the FTA will establish an API gateway to facilitate the reporting of invoices and KPIs, supporting a unified digital infrastructure across the UAE.
Before the system is fully live, a testing phase will take place with ASPs and the FTA to iron out any potential issues and ensure smooth operation upon rollout.
Key Dates for the E-Invoicing Implementation in the UAE
- Q4 2024: Service providers will be able to begin the accreditation process, with more details to follow.
- Q2 2025: Updates to the legislation will be introduced.
- Q2 2026: Phase 1 of the e-invoicing mandate, covering B2B and B2G transactions, will go live.
There’s more to know about e-invoicing in the United Arab Emirates - explore the new and upcoming regulations.
