Electronic invoicing guide
United Arab Emirates
Digital reporting requirements
Post Audit
Obligatory
Voluntary for all
Authority
NTS (National Tax Service)
Platform
This country does not require the use of a platform.
Format
E-TAX
Storage time
5 years, (capital assets 10 years, real estate 15 years)
Reporting and processes
The UAE recognises the use of electronic and/or digital invoicing. Federal Decree – Law No. 14 of 2023 Concerning the Modern Technology-based Trade obligates digital traders to provide customers with detailed digital invoices for purchases made through technological means.
Federal Decree Law No. 8 of 2017 on VAT recognises tax invoice in both forms: written and/or electronic.
The Ministry of Finance (MoF) uses the Digital Procurement Platform which automates the whole purchase cycle until the completion of fees payment process. The system enables suppliers to participate online in tenders and auctions submitted by the UAE’s ministries and federal entities. It allows suppliers to follow up on purchase orders and submit digital invoices.
Similarly, the electronic invoicing system of Telecommunications and Digital Government Regulatory Authority allows the contracted suppliers to submit invoices electronically and follow-up financial dues, purchase orders, contracts, and awarding notifications via electronic alerts.
In 2021, Dubai Digital government went completely paper-free, internal and customer transactions are be digitized since 2021. That means the Government no longer issues or asks for paper documents across all of its operations.
Upcoming legislative changes
The UAE’s new mandate introduces a Decentralized Continuous Transactions Control and Exchange (DCTCE) model, also referred to as the five-corner model. This innovative approach allows for the seamless movement of electronic invoices between the service providers of trading entities, enhancing efficiency and billing data privacy. Unlike traditional systems, the UAE model does not require invoice pre-clearance by the Tax Authority, allowing for a more streamlined transaction process.
The phased approach towards implementing the e-Invoicing system begins with a focus on business-to-business (B2B) and business-to-government (B2G) transactions, with the potential to expand to business-to-consumer (B2C) transactions in the future. The detailed timeline is as follows:
• Q3 2024: Service Provider certification requirements, procedures, and the development of the UAE data dictionary are set to be established.
• Q2 2025: Formal e-Invoicing legislation will be released, setting the legal framework for the new system.
• December 2025: A comprehensive rollout strategy will be announced, detailing the phased approach based on taxpayer size.
• July 2026: The official launch of Phase 1 of the e-Invoicing system, with provisions for early voluntary reporting by companies.
The UAE has opted not to develop a specific e-Invoice portal for SMEs. Instead, Accredited Service Providers (ASPs) will play a crucial role in facilitating e-Invoicing, with the government considering offering limited free-of-charge services as part of ASP accreditation criteria.
Links of Interest and documents
Electronic Invoicing System, TDRA
Documents
Voluntary- those agreed by the parties
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