The UAE government has released updated regulations through Ministerial Decision No. 243 of 2025 and Ministerial Decision No. 244 of 2025 on 28th September, which officially set out the phased rollout of the Electronic Invoicing System.
What is e-Invoicing in the UAE?
E-invoicing in the UAE involves creating, exchanging, and storing invoices electronically through the government’s new Electronic Invoicing System (EIS). This initiative supports the UAE’s efforts to digitise tax administration, improve VAT compliance, and follow international standards.
Why is the UAE moving to e-invoicing?
The introduction of e-invoicing supports several national objectives:
- Strengthening tax compliance and reducing tax gaps through real-time data reporting to the Federal Tax Authority (FTA)
- Improving business efficiency by reducing manual processing, paperwork, and operational costs
- Enhancing transparency and enabling faster, more effective audits
- Supporting sustainability efforts by reducing paper usage
- Promoting digital transformation and modernising business operations across the UAE
Key Points on UAE e-Invoicing Requirements:
- Must be issued in structured digital formats (XML or JSON) using UBL or PINT standards.
- Sent via an Accredited Service Provider (ASP) through the Peppol-based DCTCE 5-corner model.
- Must be reported and stored in the FTA’s e-Billing System for compliance.
- Manual or unstructured formats (PDF, JPG, paper) are not accepted as valid e-invoices.
Role of Accredited Service Providers (ASPs):
Under the new rules, businesses must work with Accredited Service Providers that meet specific standards, including:
- Must be a member of OpenPeppol.
- Have a legal presence in the UAE and comply with local laws.
- Show operational capability with verified client references.
- Maintain high information security standards (e.g., ISO certification, strong data protection).
Implementation timeline
- Q2 2025: Official enactment of e-invoicing legislation
- July 2026: Mandatory adoption and live reporting for all taxpayers
e-Invoicing Exemptions in UAE
Certain categories of transactions are excluded from mandatory e-invoicing under Article 4 of Ministerial Decision No. 243/2025:
- B2C transactions are excluded.
- Government transactions done in a sovereign capacity.
- International passenger flights with electronic tickets.
- Airline ancillary services with an issued EMD.
- International air cargo transport (airway bill issued), exempt for 24 months from start date.
- VAT-exempt or zero-rated financial services.
- Other exclusions as decided by the Minister of Finance
Advantages of early preparation
- Ensures a smooth transition with fewer disruptions.
- Boosts efficiency and can reduce operational costs.
- Enables faster payments and clearer cash flow tracking.
- Builds trust through transparent, standardized invoicing.
- Positions the business as digitally advanced and fully compliant.
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