The UAE will launch an electronic invoicing system for businesses next year as part of a major digital roll-out.
The Ministry of Finance (MoF) has announced the issuance of two Ministerial Decisions clarifying the scope of obligations and timelines for the implementation of the UAE’s Electronic Invoicing System.
The measures represent a key step in the country’s digital transformation journey, aimed at improving transparency, efficiency, and compliance across business transactions.
UAE Electronic Invoicing System
The first decision confirms that the Electronic Invoicing System will apply to all persons conducting business in the UAE for business-to-business (B2B) and business-to-government (B2G) transactions, with specific exclusions noted.
Businesses may voluntarily issue, share, and report electronic invoices and credit notes even in excluded cases.
To ensure smooth adoption, issuers and recipients of invoices must appoint an Accredited Service Provider (ASP).
The MoF will publish a list of accredited providers in due course. Under the new framework, an electronic invoice must be issued and transmitted for every business transaction, while an electronic credit note will be required in cases such as cancellations, refunds, price adjustments, or numerical errors.
Both issuers and recipients must process these documents through their appointed ASP, with all invoices and credit notes required to contain the prescribed data fields and particulars.
The system is built on the international OpenPeppol standard, a globally recognised framework for exchanging electronic documents.
This ensures interoperability with international business communities, reduces administrative costs, enhances compliance, and supports secure and accurate data exchange between businesses and government entities.
The second decision sets out a phased timeline for implementation. A pilot programme with selected taxpayers will begin on July 1, 2026. Following this, businesses with annual revenue equal to or exceeding AED50,000,000 ($13.6m) must appoint an ASP by 31 July 2026 and adopt the system from January 1, 2027.
Businesses with annual revenue below AED50,000,000 ($13.6m) must appoint an ASP by March 31, 2027 and implement the system from July 1, 2027.
In addition, every in-scope government entity must appoint an ASP by March 31, 2027 and adopt the system as of October 1, 2027.
This phased approach is designed to give businesses sufficient time to transition smoothly to the new framework, while ensuring compliance with legal requirements.
According to the Ministry, the two decisions reflect the UAE’s commitment to adopting international best practice, enhancing the ease of doing business, and advancing its transition to a fully digital economy.
