15 Sep 2026

UAE e-invoicing mandate: everything you need to know

The UAE is moving to mandatory e-invoicing. From 1 January 2027, large businesses must issue and receive their B2B and B2G invoices as structured e-invoices, followed by all other businesses on 1 July 2027 and government entities on 1 October 2027. In this article we give you an overview of the UAE e-invoicing mandate: the legal basis, who is in scope, the timeline, how the system works and what you need to do to get ready.

What is the UAE e-invoicing mandate?

Under the mandate, invoices and credit notes between businesses (B2B) and between businesses and the government (B2G) can no longer be sent as paper or PDF documents. Instead, they must be issued as structured electronic invoices in the PINT AE format and exchanged over the Peppol network through an Accredited Service Provider (ASP). At the same time, the tax data of every invoice is reported to the Federal Tax Authority (FTA).

The goals of the UAE government are clear: less manual work and fewer errors, faster payments between businesses, a smaller VAT gap and a fully digital tax administration.

The legal basis

The framework is set out in a number of decisions:

Ministerial Decision No. 243 of 2025 on the electronic invoicing system: defines the scope, the obligations of businesses and the exclusions.
Ministerial Decision No. 244 of 2025 on the implementation of the electronic invoicing system: sets out the phased timeline.
Ministerial Decision No. 64 of 2025: sets the requirements for the accreditation of e-invoicing service providers.
Cabinet Decision No. 106 of 2025: sets out the administrative penalties for non-compliance.

In addition, the Ministry of Finance publishes technical guidelines and the PINT AE data dictionary, which describe exactly which data an e-invoice must contain.

Who is in scope?

The mandate applies to businesses carrying out business in the UAE, whether or not they are registered for VAT. In scope are, among others:

B2B transactions between businesses;
B2G transactions with government entities;
self-billing and invoices issued by a third party on behalf of the supplier;
intra-group recharges and management fees;
invoices from non-UAE persons that are required to issue tax invoices in the UAE.

What is out of scope?

B2C transactions (invoices to consumers), until a later phase is announced;
sovereign activities of government entities that do not compete with the private sector;
certain international passenger and goods transport services provided by airlines;
VAT-exempt or zero-rated financial services.

The authorities may review or extend these exclusions, so always check whether an exclusion still applies to your business.

The timeline

Phase	Who	Appoint an ASP by	Mandatory from
Pilot	Selected businesses and voluntary adopters	–	1 July 2026
Phase 1	Businesses with annual revenue of AED 50 million or more	30 October 2026 (originally 31 July 2026)	1 January 2027
Phase 2	Businesses with annual revenue below AED 50 million	31 March 2027	1 July 2027
Phase 3	Government entities	31 March 2027	1 October 2027

Even if your own deadline is later, you will probably receive e-invoices from large suppliers from January 2027. It therefore pays to prepare early.

How does the system work? The five-corner model

The UAE has chosen a decentralised model based on Peppol, the so-called five-corner model:

The seller creates the invoice in its invoicing or ERP software.
The seller's ASP validates the invoice against the PINT AE rules and sends it over the Peppol network.
The buyer's ASP receives and validates the invoice.
The buyer receives the invoice directly in its own software.
The FTA receives the tax data from the ASPs in near real time.

Unlike a "clearance" model, the FTA does not approve each invoice before it reaches the customer. But the business remains fully responsible for the correctness, completeness and timeliness of its invoices, even when it works with an ASP.

What does an e-invoice contain?

A UAE e-invoice is an XML file in the PINT AE format, based on UBL. According to the Ministry of Finance, an electronic tax invoice contains 51 mandatory fields and an electronic commercial invoice 49. Some notable requirements:

Tax Identification Number (TIN): every participant is identified by its TIN, the first 10 digits of its Tax Registration Number (TRN). Your Peppol ID is 0235 followed by your TIN.
VAT in AED: an invoice may be issued in a foreign currency, but all VAT amounts must also be stated in UAE dirham.
Transaction type: special situations, such as free zone supplies, deemed supplies, the profit margin scheme, continuous supplies, e-commerce and exports, are indicated with a code on the invoice.
No negative invoices: corrections are made with an electronic credit note that refers to the original invoice.

Read more in our glossary article on PINT AE.

Your obligations as a business

Appoint an ASP in the EmaraTax portal before your deadline.
Issue e-invoices and e-credit notes for all in-scope transactions through your ASP. Invoices must be issued within 14 days of the taxable event.
Be able to receive e-invoices from your suppliers.
Keep your data up to date: inform your ASP in time about changes to your registered data.
Report system failures: inform the authority in time if your system cannot issue or receive e-invoices.
Store your records in the UAE and make them available to the authorities on request.

Penalties

Cabinet Decision No. 106 of 2025 provides for administrative penalties, including:

Violation	Penalty
Not implementing the e-invoicing system or not appointing an ASP on time	AED 5,000 per month (or part of a month) of delay
Not issuing and transmitting an e-invoice or e-credit note on time	AED 100 per document, up to AED 5,000 per calendar month
Not notifying the authority of a system failure on time	AED 1,000 per day of delay
Not notifying the ASP of changes to registered data on time	AED 1,000 per day of delay

How to prepare: a roadmap

Determine your phase based on your annual revenue.
Check your tax data: make sure your TRN, legal name and address are correct with the FTA. Not registered for VAT? Obtain a TIN.
Map your invoice flows: list your sales and purchase invoices, credit notes, self-billing, foreign-currency invoices, exports and free zone transactions.
Choose your invoicing software and ASP: the easiest route is software that is directly connected to an accredited ASP, so you can keep invoicing as usual.
Clean up your master data: collect the TINs and Peppol IDs of your customers and suppliers.
Appoint your ASP in EmaraTax before your deadline.
Test your e-invoices before your go-live date and train your team.

How onFact helps

onFact is cloud invoicing software that lets you create professional invoices, quotes and credit notes in a few clicks. For e-invoicing in the UAE, onFact works together with Storecove, an accredited ASP and Peppol Access Point. You keep creating your invoices in onFact as usual; onFact and Storecove take care of the PINT AE format, the sending over Peppol and the reporting to the FTA. E-invoices from your suppliers arrive directly in your onFact account.

Want to know more? Contact us and we'll help you get ready for the UAE e-invoicing mandate.

Frequently asked questions

When does e-invoicing become mandatory in the UAE?

On 1 January 2027 for businesses with annual revenue of AED 50 million or more, on 1 July 2027 for all other businesses and on 1 October 2027 for government entities. Businesses can join voluntarily from 1 July 2026.

Does the mandate apply to businesses that are not registered for VAT?

Yes. The mandate applies to businesses carrying out business in the UAE, regardless of VAT registration, unless an exclusion applies.

Are invoices to consumers (B2C) in scope?

Not yet. B2C invoices are excluded until a later phase is announced.

Is a PDF invoice still valid?

Once e-invoicing is mandatory for your business, a PDF is no longer a valid invoice for in-scope transactions. You can still send a PDF as a visual copy, but the legally valid invoice is the e-invoice sent through your ASP.

What is PINT AE?

PINT AE is the UAE version of the Peppol International Invoice format: the XML format every e-invoice in the UAE must follow. Read more in our PINT AE glossary article.

This article provides general information and is not tax advice. Deadlines, exclusions and procedures may change; always check the latest publications of the UAE Ministry of Finance and the Federal Tax Authority.