The Ministry of Finance has issued two Ministerial Decisions that set the scope and timelines for implementing the UAE’s new Electronic Invoicing System, marking a major step in the country’s digital transformation of business transactions.
The system will apply to all business-to-business and business-to-government transactions, with limited exclusions. Businesses may also voluntarily adopt electronic invoicing outside mandatory cases. Both issuers and recipients of invoices will be required to appoint an Accredited Service Provider, with the Ministry set to release an official list of providers.
Electronic invoices will be mandatory for all transactions, while electronic credit notes must be issued in cases of cancellations, refunds, errors, or changes in consideration. All invoices and credit notes will need to meet prescribed data requirements and be processed through the accredited service providers.
The UAE has adopted the international OpenPeppol standard, enabling global interoperability, reducing administrative costs, and enhancing security and compliance. This move is designed to strengthen transparency, streamline trade, and align the UAE with international best practices.
The implementation will follow a phased timeline. A pilot programme will launch on 1 July 2026 with selected taxpayers. Large businesses with annual revenues of AED 50 million or more must comply from 1 January 2027, while smaller businesses must follow from 1 July 2027. Government entities will join the system by 1 October 2027.
By gradually introducing the system, the Ministry aims to ensure a smooth transition for businesses while reinforcing the UAE’s commitment to efficiency, transparency, and the growth of its digital economy.
News Source: Emirates News Agency
