UAE e-invoicing mandate guide

What's changing

The UAE is moving business invoicing onto a national e-invoicing system. Invoices are exchanged as structured data over the Peppol network, through service providers accredited by the Ministry of Finance, and tax data from each invoice is reported to the Federal Tax Authority (FTA).

The system is set out in Ministerial Decisions No. 243 and No. 244 of 2025, with penalties in Cabinet Decision No. 106 of 2025. The Ministry of Finance sets the rules and accredits providers. The FTA registers businesses, runs onboarding through EmaraTax and receives the tax data.

According to the Ministry of Finance, e-invoicing can reduce invoice processing costs by up to 66%, based on the experience of other countries where it has been implemented well.

Who's in scope

The system covers business transactions by any person doing business in the UAE, whether or not they are registered for VAT. That includes transactions between businesses and with government.

In scope

Business-to-business transactions (B2B)
Business-to-government transactions (B2G)
Businesses that aren't registered for VAT
Transactions within a VAT group, with a 24-month grace period from 1 January 2027
Non-resident persons who are required to issue tax invoices

Excluded

Business-to-consumer transactions (B2C), until the Minister decides otherwise
Government acting in a sovereign capacity, not in competition with the private sector
International passenger air transport where an e-ticket is issued
Airline ancillary services sold to passengers with an Electronic Miscellaneous Document
International air cargo with an airway bill, for 24 months
Financial services that are exempt or zero-rated under Article 42 of the VAT Executive Regulation

The Minister may exclude further transactions or persons by decision. Check the Ministry of Finance's e-invoicing portal for the latest position.

Key dates

Revenue means gross income in your most recent accounting period, based on the financial statements required by UAE law. The Ministry of Finance has described the May 2026 change to these dates as final.

1 July 2026
Pilot and voluntary adoption
A pilot with a taxpayer working group begins, and any business may adopt e-invoicing voluntarily. Penalties don't apply to voluntary adopters.
30 October 2026
Appoint a provider: revenue of AED 50M or more
Businesses with revenue equal to or above AED 50 million appoint an accredited service provider.
1 January 2027
Go live: revenue of AED 50M or more
E-invoicing becomes mandatory for this group.
31 March 2027
Appoint a provider: everyone else
Businesses with revenue under AED 50 million, and government entities, appoint an accredited service provider.
1 July 2027
Go live: revenue under AED 50M
E-invoicing becomes mandatory for businesses below the threshold.
1 October 2027
Go live: government entities
E-invoicing becomes mandatory for government entities.

The five-corner model

The Ministry of Finance calls it a decentralised continuous transaction control and exchange model. In practice, every invoice passes between two accredited service providers, and tax data reaches the FTA as it moves.

1
Supplier
Issues the invoice
2
Supplier's provider
Validates, sends and reports
3
Buyer's provider
Receives, validates and reports
4
Buyer
Receives the invoice
5
FTA
Receives the tax data

The supplier's provider sends a Tax Data Document to the FTA at the same time as it sends the invoice to the buyer's provider. The buyer's provider also reports once the invoice passes its checks.

Each business is identified on the network by a participant ID: the scheme code 0235 followed by its 10-digit Tax Identification Number (TIN), which is the first 10 digits of the 15-digit TRN. Businesses without a TIN can get one through EmaraTax.

What counts as an e-invoice

An e-invoice is a structured XML document that follows PINT AE, the UAE's specification built on the Peppol standard. You can send data to your provider in another agreed format, but what is exchanged is XML.

When a transaction is cancelled, the price is reduced or an error is corrected, an electronic credit note is issued.

Counts as an e-invoice

Structured XML that follows PINT AE
Electronic credit notes
Self-billed invoices, where both parties are VAT registrants

Doesn't count

PDF files, including PDFs with a QR code
Word documents, images and scans
Invoices sent as email attachments
Debit notes: corrections are made with credit notes

Your obligations

Once e-invoicing applies to you, the rules require you to:

Appoint one accredited service provider for both sending and receiving, and complete onboarding through EmaraTax
Issue and send e-invoices on time: VAT registrants follow the VAT invoicing deadline, usually 14 days from the date of supply; others within 14 days of the transaction
Process e-invoices you receive through the system
Tell your provider in writing about changes to your FTA-registered details within 5 business days
Tell the FTA about a system failure within 2 business days
Keep e-invoice records so the FTA can access them for the full retention period under UAE tax law

Penalties

Cabinet Decision No. 106 of 2025 sets the administrative penalties. They apply from the date a business is required to implement e-invoicing, not during voluntary adoption.

Violation	Penalty
Not implementing the e-invoicing system, including not appointing a provider on time	AED 5,000 for each month or part month
Not issuing and sending an e-invoice on time	AED 100 each, up to AED 5,000 a month
Not issuing and sending an electronic credit note on time	AED 100 each, up to AED 5,000 a month
Late notice to the FTA of a system failure, by the issuer or the recipient	AED 1,000 for each day or part day
Late notice to your provider of changes to your registered details	AED 1,000 for each day or part day

Penalties for VAT invoicing under the VAT rules apply separately.

Choosing a provider

Only service providers accredited by the Ministry of Finance may provide e-invoicing services in the UAE, and your contract must be directly with the accredited provider. The Ministry publishes the list of accredited and pre-approved providers.

Accredited providers must meet requirements that include Peppol certification, ISO/IEC 27001 and ISO 22301 certification, security controls and insurance. Since May 2026, a provider may also build its service on a product owned by a third party, while staying fully responsible for it.

When you compare providers, look at how each one connects to your systems, how it handles invoices that fail validation, the visibility it gives you of reporting, and the support it offers.

Maliy's application to the Ministry of Finance for accreditation is in progress. Businesses can join our early-access programme now, and we'll confirm here once accreditation is granted.

Ministry of Finance: list of service providers

Getting ready

Whichever group you're in, the steps are the same.

1
Confirm your group and dates
Check the revenue in your latest financial statements against the AED 50 million threshold.
2
Get your TIN
Your participant ID uses your 10-digit TIN. If you don't have one, request it through EmaraTax.
3
Review your invoice data
Check that your systems capture what PINT AE requires, such as buyer TINs, tax categories and item details.
4
Choose and appoint a provider
Appoint one accredited provider before your deadline, and complete onboarding through EmaraTax.
5
Connect and test
Connect your accounting or ERP system, or set up the web portal, and test real scenarios before your go-live date.
6
Prepare your team
Update your processes for credit notes, received e-invoices, and notices to your provider and the FTA.

Deadline checker

When do you need to be ready?

Pick the group your business falls into to see your dates.

Your business

Revenue of AED 50M or moreRevenue under AED 50MGovernment entity

Appoint a provider by

30 October 2026

—

E-invoicing mandatory from

1 January 2027

—

If you're not ready

AED 5,000 for each month e-invoicing isn't implemented, including not appointing a provider on time
AED 100 for each e-invoice or credit note not issued and sent on time, up to AED 5,000 a month for each
AED 1,000 a day for late notice of a system failure to the FTA
Penalties apply from your mandatory date, not during voluntary adoption

Get ready with Maliy

Sources: UAE Ministry of Finance; Cabinet Decision No. 106 of 2025.

Sources

This guide is general information, not legal or tax advice. It reflects the published rules as of 21 September 2026. The Ministry of Finance's e-invoicing portal is the official source of information, so check it and speak to your tax adviser before making decisions.

The UAE e-invoicing mandate, explained