UAE Launches Electronic Invoice Revolution:
Mandatory from July 2026

The United Arab Emirates (UAE) Ministry of Finance is implementing an electronic invoicing system. Starting July 2026, the system will be mandatory for business-to-business (B2B) and business-to-government (B2G) transactions, aiming to digitalize invoice exchanges.

The UAE Ministry of Finance announced the launch of a comprehensive electronic invoicing system (eInvoicing Programme) to simplify, standardize, and automate invoice exchanges in the country. The system, detailed in the “UAE eInvoicing Programme Introduction” document published in February 2025 and Ministerial Decision No. 64 of 2025, becomes mandatory for the specified scope.

How Will the System Work?

The UAE electronic invoicing system is designed based on a Decentralized Continuous Transaction Control (DCTCE) and 5-corner model. The Peppol network will be utilized to ensure interoperability for invoice exchanges between businesses.

Critical dates:

• April 2025: Service Provider accreditation procedures started
• July 2026: Phase 1 electronic invoice reporting becomes mandatory

What Businesses Need to Do

Taxpayers must select an Accredited Service Provider (ASP) and enter into a contractual agreement. Businesses are required to implement the electronic invoicing solution with their chosen ASP. The system will automatically handle the exchange of invoices between suppliers and buyers and report necessary tax data to the Federal Tax Authority (FTA).

Wichtig: PDFs, Word documents, images, scanned copies, and emails are not considered electronic invoices under this program. Only structured data formats are accepted.

The initiative aims to support the digitalization of the economy for businesses, reduce compliance costs, minimize VAT leakage, and contribute to overall economic growth. Business-to-Consumer (B2C) transactions are currently outside the scope of this mandate.

https://mof.gov.ae/einvoicing/

https://mof.gov.ae/einvoicing/faqs/

https://mof.gov.ae/wp-content/uploads/2025/03/UAE-eInvoicing-Programme-Feb2025.pdf

https://mof.gov.ae/wp-content/uploads/2025/03/Ministerial_Decision_Eligibility_and_Accreditation_procedure_for_SPs_EN.pdf

https://mof.gov.ae/the-ministry-of-finance-announces-its-transformational-projects/