The UAE Ministry of Finance has issued two ministerial decisions defining the scope of obligations and timelines for implementing the Electronic Invoicing System. These steps form a cornerstone of the UAE’s digital transformation, promoting transparency, efficiency, and compliance in business transactions nationwide.
Scope of Obligations
The first decision clarifies that the Electronic Invoicing System applies to all businesses operating in the UAE for business-to-business (B2B) and business-to-government (B2G) transactions, with certain exceptions. Even where exclusions exist, companies may voluntarily issue, share, exchange, and report electronic invoices and credit notes.
Businesses are required to appoint an Accredited Service Provider (ASP), with a list of providers to be published by the Ministry. Issuers must electronically transmit invoices for every business transaction, while electronic credit notes are mandated in cases of cancellations, reduced considerations, refunds, or administrative errors. Recipients must process all electronic documents via the system, ensuring compliance with all data requirements set by the Ministry.
The system adopts the international OpenPeppol standard, which enhances interoperability with global business networks, facilitates cross-border trade, reduces administrative costs, and improves compliance efficiency. It also strengthens data security, integrity, and the speed and accuracy of invoice exchanges between businesses and government entities.
Implementation Timelines
The second decision establishes a phased rollout. The Pilot Programme will begin on 1 July 2026 with selected taxpayers. Following the pilot, mandatory adoption will proceed in stages:
- Businesses with annual revenue of AED 50,000,000 or more must appoint an ASP by 31 July 2026 and implement the system from 1 January 2027.
- Businesses with revenue below AED 50,000,000 must appoint an ASP by 31 March 2027 and implement the system from 1 July 2027.
- All in-scope government entities must appoint an ASP by 31 March 2027 and adopt the system by 1 October 2027.
This phased approach ensures a smooth transition, giving businesses time to adapt while meeting compliance obligations.
Advancing the UAE’s Digital Economy
These ministerial decisions reflect the UAE’s commitment to global best practices, simplifying the business environment and supporting the nation’s shift toward a fully digital economy. By mandating electronic invoicing across sectors, the country strengthens transparency, reduces administrative complexity, and enhances efficiency in both private and government transactions.
