The UAE is making the move to mandatory electronic invoicing, with full compliance set for 2027. The goal is to regulate and standardize B2B and B2G electronic transactions in the United Arab Emirates. The UAE’s Ministry of Finance also requires companies to appoint an Accredited Service Provider (ASP) to comply with the new regulations.
Read more to understand the guidelines and scope of the UAE’s electronic invoicing system.
UAE electronic invoicing guidelines
The UAE government has selected the Continuous Transaction Controls (CTC) and Digital Reporting Requirements (DRR) models. This means that the authorities are always able to have visibility on transactions and can audit companies whenever needed.
With a decentralized five corner structure model, the UAE tax authorities require companies to select an Accredited Service Provider (ASP). These electronic invoicing providers will work as a middleman to validate and transmit data from the businesses to the authorities. The ASPs must comply with the usage of the Peppol network.
In the UAE model, companies can only choose one ASP for both reception and issuance of e-invoices. The official accreditation to ASPs will be granted and published by the Ministry of Finance. To officially select a provider, businesses must complete the onboarding process through the EmaraTax platform.
Scope
The scope of the Ministerial Decision No. 243 of 2025 regarding the implementation of obligatory electronic invoicing in the UAE applies to all companies conducting business-to-business (B2B) and/or business-to-government (B2G) transactions in the country. This is not limited to size, industry or VAT registration. It also encompasses government entities and international companies that issue invoices locally, with certain exceptions (certain airline services, exempt financial services).
Businesses are obligated to issue, transmit and report e-invoices and credit notes within 14 days of the transaction. The communication between supplier and buyer and the reporting of invoice tax data are handled by the appointed ASPs.
B2C (sales to individual consumers) is explicitly excluded for the time being, pending a future ministerial decision.
Timeline of e-invoicing implementation in the UAE
July 1st 2026 – Pilot program for a selected group of taxpayers, and the possibility of voluntary adoption of the system for any interested business.
July 31st 2026 – Deadline of obligatory of ASP appointment for businesses with annual revenue exceeding or equal to AED 50 million.
January 1st 2027 – Mandatory issuance and reception of e-invoices for businesses with annual revenue exceeding or equal to AED 50 million.
March 31st 2027 – Deadline of obligatory of ASP appointment for businesses with annual revenue under AED 50 million and government entities.
July 1st 2027 – Mandatory issuance and reception of e-invoices for businesses with annual revenue under AED 50 million.
October 1st 2027 – Mandatory issuance and reception of e-invoices for government entities.
Penalties and fines
If a business does not comply with the mandatory e-invoicing regulations or does not appoint an ASP by the deadline, the penalty charge is AED 5,000 a month. In the case of not issuing an invoice or credit note on time, the company will be fined AED 100 per transaction capped at AED 5,000 per month. Finally, failure to notify system failures or changes in data implies a fine of AED 1,000 per day of delay.
How to prepare your business for e-invoicing in the UAE
Complying with mandatory e-invoicing regulations requires system adaptations, team trainings and an overall transformation towards digitalization. As leaders in electronic invoicing solutions for travel & hospitality companies, at Voxel, an Amadeus company, we can help businesses comply with e-invoicing regulations in the UAE.
