On October 24, 2024, the UAE’s Ministry of Finance (MoF) introduced an e-invoicing portal aimed at transforming the country’s digital tax compliance framework. The platform offers key insights into the new “UAE eInvoicing Programme,” including FAQs and an overview of operational aspects.
The UAE’s transition to e-invoicing reflects the government’s ongoing efforts to modernise tax processes, boost transparency, reduce fraud, and improve business efficiency. This initiative follows the implementation of value-added tax (VAT) in 2018, further aligning with global best practices. The Ministry plans a phased rollout of e-invoicing, beginning with Phase 1 in July 2026. Federal Decree-Laws No. 16 and No. 17 of 2024 introduce specific amendments to the VAT Law and the Tax Procedures Law, which focus on e-invoicing provisions. The amendments aim to facilitate seamless electronic transactions and efficient tax reporting.
The e-invoicing model to be adopted includes a “five-corner” Decentralized Continuous Transaction Control and Exchange (DCTCE) framework, integrating suppliers, buyers, and the Federal Tax Authority (FTA) through a PEPPOL network. This platform enables seamless e-invoice exchanges and validation by Accredited Service Providers (ASPs). The list of ASPs is expected by the end of Q4 2024.
Preparation and Implementation
Businesses operating in the UAE should familiarise themselves with the newly launched e-invoicing portal, review legislative updates, and assess their internal systems for e-invoicing compliance. This preparation is necessary as the UAE gears up for comprehensive digital transformation in tax procedures.
Key milestones leading up to the e-invoicing rollout include the development of accreditation requirements, data validation standards, and specific criteria for businesses transitioning to electronic invoicing. Phase 1’s go-live date of July 2026 signals the beginning of a structured implementation strategy that will include grace periods and pilot testing phases, allowing businesses to adapt their systems and processes.
Amendments Under Federal Decree-Laws
Federal Decree-Law No. 16 of 2024 introduces expanded definitions for terms like “tax invoice” and “tax credit note” to encompass electronic formats. New definitions for “electronic invoicing system” and “electronic credit note” have been included. Law No. 17, meanwhile, grants the UAE’s Minister of Finance the authority to issue directives to implement the e-invoicing system effectively.
Input tax claims for taxpayers now require retention of e-invoices, while the issuance of tax invoices and credit notes is modified to ensure compliance with electronic submission and record-keeping requirements.
Industry Implications
Shifting to e-invoicing signals the UAE’s commitment to digitisation and efficient tax collection. The MoF stresses that businesses should align their systems, train their staff, and ensure accurate data management ahead of the rollout. “The e-invoicing system will not only enhance compliance but also drive economic efficiency across sectors,” a spokesperson from the MoF highlighted.
