E - Invoicing UAE
UAE requires structured digital tax invoices for both business-to-business and business-to-consumer transactions through the FTA’s Electronic Invoicing System.
Going live will happen in stages starting in July 2026. The Peppol network and PINT-AE standards will be used.
E-invoicing UAE consultation from HH & HALE helps businesses pick the best UAE e-invoicing service providers, make sure they meet UAE e-invoicing rules, and set up the best UAE e-invoicing solutions early on.
What does E-invoicing means in the UAE?
Authorized service providers (ASPs) in the UAE use e-invoicing to make, send, and check tax invoices in XML format that meets UAE-Peppol International (PINT-AE) standards. Invoices go through a five-corner model, which includes: supplier – supplier ASP – FTA (real-time validation) – buyer ASP – and buyer.
During this process, data exchange is kept safe, compliance checks are carried out automatically, and URNs are sent out right away. With this change, credit/debit notes and simplified invoices will be sent instead of paper or PDF invoices for transactions that fall under this rule.
Why does the UAE Need E-invoicing?
UAE law 16/2024 changes the VAT law and lets transactions be watched in real time to stop tax evasion, make things more clear, and align with the goals of Vision 2031 for the digital economy.
Ministerial Decisions 243/244/2025 say that all VAT/CT-registered businesses must use the system for B2B and B2G tax invoices. Not doing so can lead to fines of up to AED 20,000 per violation, with bigger fines for not following the rules more than once. Even though B2C isn’t included, if a VAT-registered recipient asks for it, you have to give them a structured format.
How E-Invoicing Works in the UAE
All businesses on the mainland and in free zones that send and receive B2B and B2G tax invoices must follow this rule. Businesses that make taxable goods worth more than AED 10,000 per invoice are included, along with those that are exempt from VAT and some that are not.
There are also supplies of goods and services that need tax invoices. Retail sales that are only to consumers, reimbursements for employees, and some government exemptions are not included, though.
Non-residents who sell goods that are taxed in the UAE must follow the rules set by ASPs. Businesses in free zones must follow the same rules whether they are zero-rated or not.
Timeline for UAE e-invoicing
- In the fourth quarter of 2024, ASP accreditation begins, and the UAE Data Dictionary is made public.
- Laws are finalized in the second quarter of 2025, and FTA sandbox testing can begin.
- From July 1, 2026, all businesses will be able to go live with Phase 1 if they want to or as a pilot.
- January 1, 2027: Needed for more than 50 million dirhams in sales (ASP appointment deadline July 31, 2026).
- July 1, 2027: REquired for revenue less than 50 million AED (ASP appointment deadline March 31, 2027).
- On October 1, 2027, all parts of the government will be fully integrated (B2G complete).
How e-invoicing works in the UAE?
- Creating Invoice: XML e-invoices with required fields are made by ERP/ASP software.
- Verification and signing: The buyer ASP checks the syntax and business rules of the document and digitally signs it.
- Transmission: Sent to FTA through Peppol for real-time validation (syntax, TRN check, and numbering in order).
- Payment and delivery: FTA sends URN to buyer ASP; both ASPs send metadata to FTA.
- Changes: note of credit or debit made the same way within 14 days; cancellations need FTA approval.
Requirements for UAE Invoices (Tax Invoices)
E-invoices need to have:
- A unique serial number that goes in order within the series,
- The date they were issued,
- The full name and address of the buyer or seller,
- The TRN,
- A detailed description of the goods or services,
- Their quantity,
- Price,
- Unit value,
- Line-level discounts and VAT rates or amounts,
- Payment terms,
- A QR code that links to XML,
- The type of invoice (tax, credit, debit, or simplified format).
Basic invoices (<AED 10,000) have only the most important fields and don’t list any extra charges. After validation, changes are not allowed.
Conditions for e-invoicing in the UAE
- For the FTA, you need to use the XML/UBL 2.1 file because it has the right digital structure. Fill in all 47 of the FTA’s Data Dictionary’s required fields. Some of these are TRN, times, item details, VAT amounts, and more. You can add a digital stamp that shows it’s real and hasn’t been changed with PKI certificates. Add a QR code that leads directly to the full XML file to make it easier to read.
- You must use a service provider (ASP) that is approved by the FTA. Reports will be sent to the FTA by the ASP, who will check them to make sure they are correct. There is a list of ASPs on the FTA website. Pick one that’s okay for the size of your business.
- You have 14 days from the sale, service, or delivery of the goods to send the e-invoice. For at least 5 years, keep all of your paperwork, such as bills, proofs, and audit trails. Anytime, the FTA can ask.
- Use an API to connect your ERP (like SAP, Oracle, or QuickBooks) to the ASP. This will make it so that emails are sent automatically. By setting up backup processes that you can do by hand, you can be ready for short outages that last up to 24 hours.
- Test Steps: test everything in the FTA’s free playground before you start. The best way to find problems quickly is to do full user acceptance testing (UAT) with real-life transactions.
Why should businesses in the UAE use e-invoicing?
- Save money: Fully automating can cut costs by 60–80% for things like paper, printing, mail, and handling by hand.
- Faster Payments: Approvals and customer payments happen 50% or more faster with real-time FTA checks.
- Making mistakes by hand, like paying twice, losing an order, or entering the wrong VAT, is avoided by automatic calculations.
- Avoid fines. If you auto-report to the FTA, you have a lower chance of being audited and a higher chance of getting penalty.
- Insights for Better Business: Structured data makes it simple to see trends, keep track of spending, and guess how much money will come in and out.
- Flexible Trade: The Peppol network works well for partners in the GCC and all over the world.
Checklist for Complying with UAE E-Invoicing
- Pick an ASP early on: Pick an ASP that is approved by the FTA and sign up with them before the end of your phase, which for large companies is July 2026.
- Draw a system map: By directly matching ERP fields to the PINT-AE Data Dictionary, you can make sure that the XML files that are made are correct.
- Train Your Staff: Teach your staff how to make bills, how to handle mistakes and rejections, and how to fix common issues like missing fields.
- Dashboards: As soon as you look at a set of screens, you can see your URN numbers, rejection rates, and compliance scores.
- Write down everything: Make clear rules about how to back up data during breakdowns, store data, fix invoices, and issue credit notes.
When I export goods, do I need to use e-invoicing?
If you’re selling to another VAT-registered business that isn’t taxed, you do need a tax invoice for business-to-business exports. Beginning in October 2027, B2G transfers to the government will happen. Any B2B zero-rated sale, even if the buyer is in a different country, needs this. It’s not needed for pure B2C exports to end users.
How to Fill Out a Tax Form in the UAE (After 2026)
- Type in Details: Type in details about the sale right into your ERP software, like the buyer’s TRN, the goods, the prices, and the VAT.
- The ERP creates a full XML file with all 47 fields, a QR code, and a digital signature.
- Send and Validate: The ASP checks it, sends it through the Peppol network, and the FTA accepts it right away. After that, they give it a unique number (URN).
- Get the signed copy back and keep it with a delivery confirmation as proof that the buyer got it.
B2B and B2G tax bills can’t be typed in by hand, emailed as a PDF, or printed after the due dates. All of it has to go through this automatic system.
HH & Hale’s Services for E-Invoicing in the UAE
As one of the best e-invoicing companies in the UAE, HH & Hale can help you with complete e-invoice implementation. We are an e-invoicing accredited service provider, and we’ve partnered with Madrono AI to help you manage the integration of ERP, PINT, and AE.
Our expert team can also teach you about e-invoicing law in the UAE, help with pilot testing, and keep an eye on things for six months after go-live.
Businesses in Dubai and Abu Dhabi can work with HH & Hale to get the best e-invoicing solution in the UAE that fits their revenue needs.
Get in touch with us right away to get your free compliance roadmap before the pilot launch in 2026.
E-Invoicing Services in UAE
HH provides end-to-end advisory on UAE e-Invoicing regulations, FTA requirements, and future mandate readiness.
Book a Corporate Tax ConsultationFrequently Asked Questions
Phase 1 pilot in July 2026; businesses with sales of at least 50 million dirhams will have to use it by January 2027; all other businesses must start using it in July 2027.
Approval by the FTA of ASPs (Ministerial Decision 64/2025 list) that handle real-time FTA reporting, Peppol routing, and XML validation.
All tax invoices for business and pleasure must follow a structured system. The rules should be the same for mainland and free zones.
XML for UBL 2.1 that is digitally signed, has a QR code, and follows the FTA Data Dictionary.
Not at all, there are no exceptions. Companies making more than 50 million AED will have to use e-invoicing starting in July 2027, but companies can try it out voluntarily in July 2026.
The only time a parallel run is possible is during the 2026 pilot. This is only true for B2B and B2G tax invoices sent after the phase deadlines.
At first, each violation costs AED 10,000 to 20,000, but the amount goes up if the violation happens again. If an invoice is rejected, payments blocks.