The Ministry of Finance of the United Arab Emirates (MoF) has reaffirmed its plans for the previously announced E-Billing System project.
The MoF just made available an e-invoicing website that defines the objectives of the e-invoicing project to reduce human intervention in business and tax reporting processes, optimize costs, and enhance security through encrypted transactions.
This Continuous Transactions Controls (CTC) mandate in the UAE will be based on a five-corner model. The framework facilitates the exchange of electronic invoices between the service providers of trading entities. Only certified service providers will be authorized to transmit this data to a centralized platform managed by the Tax Authority.
The mandate will initially encompass B2B and B2G transactions, with the potential inclusion of B2C transactions in the future.
The timeline announced for the roll-out of the UAE e-invoicing mandate is:
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End of 2024: Accreditation possibility opens for Service Providers.
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2025: Legislation will be published.
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2026: Phase 1 go-live of e-Invoicing reporting obligation.
Taxpayers in the UAE will require a certified service provider to transmit the e-invoice data to the Tax Authorities, and more announcements related to service provider accreditation are expected in the following weeks.
