UAE E-Invoicing Mandate: What Businesses Need to Know Before 2026

Formis Technologies
Nov 24
3 min read

The UAE is entering a major digital transformation phase and one of the biggest changes ahead is the mandatory adoption of Electronic Invoicing (e-invoicing).

Announced by the Ministry of Finance (MoF) and overseen by the Federal Tax Authority (FTA), the new framework will reshape how businesses issue, receive, and report invoices.

Whether you’re a large enterprise or an SME, the way you manage VAT-related invoicing is about to change permanently.

This blog breaks down everything you need to know: timelines, compliance requirements, the Peppol model UAE is adopting, and how your organisation should start preparing today.

When Does E-Invoicing Become Mandatory?

The UAE’s implementation follows a phased rollout:

1. Pilot Programme

Starts: 1 July 2026
For selected taxpayers only.

2. Phase 1 — Large Businesses

(Annual revenue ≥ AED 50 million)

Appoint ASP: By 31 July 2026
Mandatory Go-Live: 1 January 2027

3. Phase 2 — Other Businesses

(Annual revenue < AED 50 million)

Appoint ASP: By 31 March 2027
Mandatory Go-Live: 1 July 2027

4. Government Entities

Appoint ASP: By 31 March 2027
Mandatory Go-Live: 1 October 2027

Voluntary adoption begins from 1 July 2026.

What System Is the UAE Using? Introducing DCTCE (Peppol 5-Corner Model)

The UAE will use a digital invoicing infrastructure called Decentralized Continuous Transaction Control and Exchange (DCTCE), built on the international Peppol 5-Corner Model.

Here’s how the model works:

Supplier (You) Generates the invoice.
Supplier’s ASP (Accredited Service Provider) Validates data, converts it into the UAE-required PINT AE format, and transmits it.
Receiver’s ASP Receives and delivers the e-invoice to the buyer.
Buyer/Receiver Receives the structured digital invoice.
Federal Tax Authority (FTA) Stores the tax data (Tax Data Document) reported in near real-time to ensure monitoring and compliance.

This architecture ensures security, accuracy, standardization, and tamper-proof auditability.

Working With Accredited Service Providers (ASPs)

Under the UAE e-invoicing law, both suppliers and buyers must use an FTA-accredited ASP.

An ASP is responsible for:

Validating invoice data
Structuring it into approved formats like XML/JSON (PINT AE)
Transmitting the invoice to the receiver’s ASP
Reporting tax data to the FTA nearly instantly
Digitally signing the invoice

Your ERP/accounting system will no longer send invoices directly, you’ll need an ASP to handle the mandated data flows.

Required Invoice Format

Invoices and credit notes must be issued in structured digital formats only, such as:

XML
JSON
UBL / PINT AE (UAE-adapted)

PDFs, scans, images, or paper invoices will NOT be compliant for in-scope transactions.

What Transactions Are Covered?

The e-invoicing mandate applies to all VAT-registered businesses in the UAE, covering:

B2B transactions
B2G transactions

Exclusions include:

Certain sovereign government activities
International goods/passenger transport by airlines
Certain exempt financial services

Mandatory E-Invoice Data Fields

Each e-invoice must include:

1. Supplier Details

Legal name
TRN
Address
ASP identifier

2. Buyer Details

Legal name
TRN
Address

3. Invoice Metadata

Invoice number
Issue date/time (UTC)
Type code
Currency

4. Transaction Details

Product/service description
Quantities
Pricing
VAT rate per item
VAT amount per item

5. Tax Summary

Total taxable amount
Total VAT
Gross total

6. Digital Authentication

ASP digital signature
Validation stamp
Hash/QR code

What Should Businesses Do Now?

Even if your mandatory date is in 2027, preparation needs to begin now.

1. Identify Your Compliance Phase

Use your annual revenue to determine your mandatory go-live date.

2. Evaluate Your Current ERP/Accounting System

Check:

Can it generate XML/JSON structured data?
Can it integrate with external ASPs?
Does it support PINT AE mapping?

3. Start Engaging ASPs

The Ministry of Finance will publish the official list of Accredited Service Providers. Once available, early adoption gives businesses more time to test and integrate.

4. Map Your Data

Your system fields must align with the UAE’s official Data Dictionary. This requires collaboration between your ERP team and your ASP.

Final Thoughts

The UAE’s shift to e-invoicing isn’t just a compliance requirement, it’s part of a larger national digital strategy that will enhance transparency, reduce fraud, streamline auditing, and modernize financial operations.

Organisations that prepare early will benefit from smoother transitions, lower implementation costs, and improved operational efficiency.