Digital transformation, particularly e-invoicing, has become a necessity in the UAE. The government suggests that the new Electronic Invoicing System (EIS) is mandatory for all VAT-registered entities for B2B and B2G transactions. According to the latest updates on e-invoicing in the UAE, large-scale businesses with a revenue greater than or equal to AED 50 million must implement mandatory e-invoicing by January 1, 2027, by appointing an ASP by July 31, 2026. Understanding the e-invoicing mechanism, staying legally compliant, and utilising its benefits offer unmatchable competitive advantages to businesses in the UAE.
What is e-invoicing?
E-invoicing is the process of creating, exchanging, and storing invoices digitally using a structured format, as opposed to the conventional paper format. With the UAE’s core determination to digitalize tax administration, optimize VAT compliance, and adhere to international standard practices, the government has introduced the Electronic Invoicing System (EIS). According to EIS, a valid e-invoice should be machine-readable, such as XML or JSON. It should comply with UAE-approved standards like Universal Business Language (UBL) or Peppol Invoice Standard (PINT). The e-invoice issuance should be completed within 14 days of the transaction date. It must then be sent via Accredited Service Provider (ASP). Businesses should then store this invoice within the e-billing system of the Federal Tax Authority (FTA) for monitoring. The e-invoicing in the UAE must be in Arabic or include Arabic translations. The EIS disqualifies unstructured formats such as PDFs, JPGs, and paper invoices.
Steps involved for E-invoicing in the UAE
Here is a detailed procedure format of e-invoicing under the Electronic Invoicing System (EIS) of the UAE.
Invoice Preparation: Businesses prepare invoices using their Enterprise Resource Planning (ERP). The data should align with MoF’s (Ministry of Finance) predefined data structure.
Structured Format: The invoice should be in machine-readable digital format, namely XML or JSON.
Data Transmission: Businesses must transmit their digital invoices through the Accredited Service Provider (ASP), which validates the data and forwards it to the FTA. The process involves a 5-corner model between the seller, the seller’s ASP, the buyer, the buyer’s ASP, and the government.
Invoice Storage: Businesses can maintain their own electronic archive, while the FTA securely stores the e-invoice extract.
Mandatory E-invoicing Regulations: Here is a list of key regulations and mandates of e-invoicing in the UAE:
Ministerial Decisions: The Ministry of Finance issues key decisions defining technical and operational requirements.
Legislative Basis: The legal foundation comprises federal decree-laws and ministerial decisions. Federal decree laws primarily comprise two decrees, namely No. 16 of 2024, which amends the VAT law, and No. 17 of 2024, which modifies tax procedures.
Mandatory Adoption Timeline: On 28th September 2024, two Ministerial Decisions, namely, Ministerial Decision No.243 of 2025 and Ministerial Decision No.244 of 2025, was released with updated regulations.
Here is the new implementation roadmap:
| Phase | Category | Deadline to Appoint ASP | Mandatory Go-Live Implementation Date |
| Pilot Start | Some selected businesses | Not mentioned | 1 July 2026 |
| Voluntary Adoption | Optional for any business | Flexible | Starts from 1 July 2026 |
| Phase 1 | Large businesses with an annual revenue ≥ AED 50 million | 31 July 2026 | 1 January 2027 |
| Phase 2 | SMEs with an annual revenue < AED 50 million | 31 March 2026 | 1 July 2027 |
| Phase 3 | All in-scope UAE government entities | 31 March 2027 | 1 October 2027 |
Exemptions: Certain state sovereign activities listed in the Ministerial decisions are excluded. Also, B2C retail transactions are initially exempted from mandatory e-invoicing.
The Trait of Credible e-Invoicing Services in the UAE: Consider a few key elements when selecting e-invoicing services in the UAE:
Compliance with e-invoicing regulations: Your service provider must comply with all the Ministerial Decisions articulated for e-invoicing.
Accreditation: You should ensure ASP accreditation of your service provider by the Ministry of Finance.
Standard Formats: They should prepare invoice reports in XML or JSON format and in accordance with the UAE data dictionary (PINT-AE / UBL).
Simplified ERP Integration: An e-invoicing service provider in the UAE must have API integration capabilities with your ERP.
Scalability: They should offer a system performance benchmark that can handle peak transaction loads and high invoice volumes to ensure futuristic development.
Real-time Validation: A reliable service provider acknowledges issues and transmits invoices in real time.
Error Handling: A dependable solution offers built-in validation that highlights incorrect fields and detects duplicate invoices.
Technical & Workflow Support: The solution should provide technical support, including a user-friendly dashboard and customizable approval workflows.
Storage: Every business should receive secure, compliant storage for e-invoice archives.
How FAR Consultancy Middle East helps with e-invoicing Services?
FAR Consultancy Middle East offers e-invoicing services in the UAE with unmatchable proficiency. We offer Peppol-ready solutions, fully compliant with MoF and FTA guidelines. Our experts provide you with end-to-end e-invoicing solutions and monitor the status of submitted e-invoices. With a user-friendly web-based portal, we ensure strong customer support by guaranteeing real-time reporting. Count on us for compliance, built-in validation, and updated technical support. We employ our knowledge in e-invoicing updates to provide you with the best e-invoicing services.
Frequently Asked Questions:
1.Has e-invoicing in the UAE become mandatory?
Although it is not currently mandatory, the UAE is planning for a phased e-invoicing mandate for VAT-registered businesses and government entities, with a pilot programme starting from July 2026.
2.What is referred to as the 5-corner model?
The UAE has incorporated a Peppol-based CTC (Continuous Transaction Control) 5-corner model between the seller, the seller’s ASP, the buyer, the buyer’s ASP, and the government (FTA).
3.What procedures are involved in implementing e-invoicing in the UAE?
Effective from July 2026, here are the various measures to be taken care of:
- Comprehend the timeline and scope
- Appoint an ASP
- Upgrade ERP/accounting systems
- Test compliance during the pilot phase
- Establish data governance
- Implement secure storage and archives
- Ensure compliance with FTA guidelines
- Ensure the readiness of reporting.
- Train staff to ensure a smooth transition
4. Is FAR Consultancy Middle East a trustworthy e-invoice service provider?
Yes, you can count on FAR Consultancy Middle East for reliable e-invoicing services in the UAE.
5. Should credit notes be electronic?
Yes, credit notes should also be issued in machine-readable structured format like XML or JSON and transmitted within 14 days.
