The UAE Ministry of Finance will commence the pilot phase of its electronic invoicing system on July 1, 2026, marking a significant step in advancing digital transformation across the national economy.
During an awareness session organised in collaboration with the Federal Tax Authority (FTA), the ministry said the unified e-invoicing framework is designed to deliver value to both businesses and government entities by cutting costs, improving operational efficiency and enhancing accuracy throughout the invoicing lifecycle.
By automating the creation, exchange and validation of invoices, businesses are expected to process transactions more quickly, strengthen cash flows and improve working capital management, with small and medium-sized enterprises set to benefit in particular, the ministry noted.
Officials added that the system will enhance transparency and simplify tax audits conducted by the FTA, while advanced security features will help reduce fraud risks and reinforce corporate credibility.
Reliable transaction data is also expected to support access to financing and facilitate cross-border trade in line with international standards.
The pilot phase will initially cover a selected group of taxpayers, followed by a nationwide rollout in three mandatory stages.
Companies with annual revenues of AED 50 million or more must appoint an accredited service provider by July 31, 2026, and fully implement the system by January 1, 2027.
Businesses below this threshold must appoint a provider by March 31, 2027, and comply fully by July 1, 2027, while government entities are required to complete implementation by October 1, 2027.
Younis Haji Al Khoori, Undersecretary at the Ministry of Finance, described the initiative as a strategic move towards building an integrated digital financial ecosystem that enhances efficiency, strengthens transparency and supports tax compliance.
Khalid Ali Al Bustani, Director General of the FTA, said the introduction of e-invoicing will encourage voluntary tax compliance by simplifying and automating invoicing through a secure system aligned with global best practices.
