E-invoicing is the biggest change to invoicing in the UAE since VAT was introduced. From 2027, most invoices between businesses will no longer be PDFs or paper. They will be structured electronic files exchanged through accredited providers, with the data reported to the Federal Tax Authority (FTA). This guide covers the rules, the deadlines, the penalties and what to do now.

The legal basis

• Ministerial Decision No. 243 of 2025 sets the scope of the Electronic Invoicing System.
• Ministerial Decision No. 244 of 2025 sets the implementation timeline. It was amended in May 2026 to extend the deadline for large businesses to appoint a provider.
• Cabinet Decision No. 106 of 2025 sets the administrative penalties.
• Ministerial Decision No. 64 of 2025 sets how service providers are accredited.

How it works

The UAE uses a Peppol-based model, often called the five-corner model:

1. The supplier issues the invoice in its system.
2. The supplier’s Accredited Service Provider (ASP) converts it into the UAE format (PINT AE) and sends it over the Peppol network.
3. The buyer’s ASP receives it and delivers it to the buyer.
4. The invoice data is reported to the FTA.

A PDF sent by email will no longer be a valid tax invoice for transactions in scope.

Who is covered

E-invoicing applies to any person conducting business in the UAE for B2B and B2G transactions, whether or not they are registered for VAT.

Currently excluded:

• B2C sales, until further notice
• Government activities in a sovereign capacity
• Certain airline services
• VAT-exempt financial services

VAT groups get a 24-month deferral for transactions within the group, starting 1 January 2027.

Key deadlines

Group	Appoint an ASP by	Go live
Revenue of AED 50 million or more	30 October 2026	1 January 2027
Revenue under AED 50 million	31 March 2027	1 July 2027
Government entities	31 March 2027	1 October 2027

A voluntary pilot has been running since 1 July 2026.

Penalties (Cabinet Decision No. 106 of 2025)

• AED 5,000 per month for not implementing the system or not appointing an ASP on time.
• AED 100 per invoice not issued electronically as required, capped at AED 5,000 per month.
• AED 100 per credit note not issued electronically as required, capped at AED 5,000 per month.
• AED 1,000 per day for not notifying the FTA of a system failure. A failure must be reported within 2 business days.
• AED 1,000 per day for not notifying your ASP of changes to your registered data.

These are in addition to normal VAT penalties.

Buyers need an ASP too

Invoices travel from the supplier’s ASP to the buyer’s ASP. A business that only receives invoices from suppliers still needs an ASP to receive them. Credit notes are also issued electronically, and invoices should be issued within 14 days of the transaction.

Your readiness checklist

1. Confirm your category and deadline based on your revenue.
2. Clean your data. Check TRNs, legal names and addresses of customers and suppliers, and VAT treatment codes.
3. Choose an ASP from the Ministry of Finance list of accredited providers.
4. Update your accounting or ERP system so it can send and receive e-invoices.
5. Test before go-live and train the team that raises invoices and credit notes.
6. Keep records in the UAE for the required retention period.

How A+ Advisory helps

We are independent tax consultants, not an ASP. Our e-invoicing readiness review covers your current invoices and VAT treatment, a data check against the new requirements, help shortlisting an ASP that fits your business, and preparing your team for go-live. The fee is fixed and agreed upfront.

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Talk to A+ Advisory. WhatsApp or call +971 55 634 4001, email [email protected], or book a 30-minute consultation. We work in Arabic and English, Monday to Friday, 9 AM to 6 PM.

This article is general information and not advice for your specific situation.