UAE E-invoicing

The United Arab Emirates (UAE) introduced comprehensive e-invoicing legislation in 2025, with mandatory implementation set to begin in phases starting in January 2027.

While the mandate does not begin until 2027, businesses are strongly advised to start preparing for the enforcement of e-invoicing in the country now.

This page provides all the necessary information on UAE e-invoicing to ensure compliance.

1. B2B e-invoicing in the UAE 2. B2G e-invoicing in the UAE 3. The use of Peppol in the UAE 4. Timeline of e-invoicing adoption in the UAE 5. Setting up e-invoicing in the UAE with Sovos 6. FAQ 7. Additional resources

B2B e-invoicing in the UAE

B2B e-invoicing will become mandatory in the United Arab Emirates from January 2027, affecting businesses in phases.

Large businesses—those with annual turnover exceeding AED 50,000,000—will be required to utilise e-invoices from 1 January 2027. Small and medium businesses—those whose turnover does not pass the threshold—will come under the e-invoicing mandate from 1 July 2027.

Taxpayers in the UAE will be required to issue and receive electronic invoices through an Accredited Service Provider (ASP), which they must appoint early in the process, adhering to specific timelines set by the Ministry of Finance (MoF). Electronic invoices will need to be sent in XML format, and the ASP will also share the invoice data with the Federal Tax Authority (FTA).

B2G e-invoicing in the UAE

B2G e-invoicing will become mandatory in the United Arab Emirates on 1 October 2027, though government entities must have appointed an Accredited Service Provider (ASP) by 31 March 2027.

E-invoices sent to the government will need to be in XML format. Data from these invoices will also be shared to the Federal Tax Authority.

The use of Peppol in the UAE

The UAE electronic invoicing system adopts a Decentralised Continuous Transaction Control and Exchange (DCTCE) model based on the Peppol network infrastructure.

The 5-corner model ensures secure, standardised exchange of electronic invoices between trading partners while providing real-time visibility to tax authorities.

The e-invoice exchange process involves these steps:

Supplier sends invoice data to their Accredited Service Provider (ASP).
ASP validates and converts the data to UAE XML format (PINT UAE) .
ASP transmits the e-invoice via the Peppol network to the Buyer’s Service Provider.
The Buyer’s Service Provider acknowledges receipt and delivers the invoice to the Buyer.
Both ASPs report tax-relevant data to the FTA platform.
FTA confirms reporting to the ASPs.
The supplier’s ASP forwards all confirmations to the Supplier to ensure legal certainty that the obligations towards MoF have been correctly fulfilled.

Learn more about Peppol e-invoicing.

Timeline of e-invoicing adoption in the UAE

Here are the key milestones to be aware of for e-invoicing in the United Arab Emirates.

1 July 2026: Select businesses can join a pilot programme for e-invoicing
31 July 2026: Large businesses (annual revenue exceeding AED 50,000,000) must have appointed an e-invoicing service provider
1 January 2027: Mandatory e-invoicing begins for large businesses (annual revenue exceeding AED 50,000,000)
31 March 2027: Small and medium businesses (annual revenue under AED 50,000,000) and government entities must have appointed an e-invoicing service provider
1 July 2027: Mandatory e-invoicing begins for small and medium businesses (annual revenue under AED 50,000,000)
1 October 2027: Mandatory e-invoicing begins for government entities