The Ministry of Finance of the United Arab Emirates (MoF) has revealed its plans for previously announced E-Billing System, on 14 February 2024.
The MoF is initiating a regime that couples CTC Reporting with an e-invoicing mandate.
This mandate employs a Decentralized Continuous Transactions Control and Exchange (DCTCE) five corner model. This framework facilitates the movement of electronic invoices between the service providers of trading entities, where only certified service providers are authorized to transmit this data to a centralized platform managed by the Tax Authority.
UAE’s mandate does not implement any type of clearance system. Service providers of trading parties will exchange the e-invoice without a validation or intervention from the Tax Authority.
Initially, the mandate will encompass B2B and B2G transactions, with the potential inclusion of B2C transactions in future considerations.
Furthermore, the UAE will establish its own Peppol Authority and leverage Peppol PINT as format, similar to other non-EU Peppol jurisdictions.
The announced timeline for the regulatory process is as follows:
- Q3 2024: Service Provider Certification requirements and procedures and development of Data Dictionary | Only certified SPs will send the data to a central platform of the Tax Authority.
- Q2 2025: e-Invoicing Legislation
- December 2025: Roll-out strategy
- July 2026: Phase 1
With this mandate, the UAE becomes to the third CTC jurisdictions in the Gulf region, joining Saudi Arabia and Israel. Considering that each of these countries is implementing different type of frameworks, working with a professional service provider that supports these countries is essential for staying on top of compliance requirements. For more details, you can visit our blogs dedicated to Saudi Arabia and Israel.
