Mandatory e-invoicing in the UAE from 2027

The UAE Ministry of Finance has decided that structured electronic invoices (e-invoices) will become mandatory for B2B and B2G invoices. Large businesses must switch on 1 January 2027, all other businesses on 1 July 2027 and government entities on 1 October 2027. This means that every business needs suitable software, not only for sending but also for receiving e-invoices. E-invoices are no longer sent by email, but over the international Peppol network, through an Accredited Service Provider (ASP).

onFact has supported Peppol e-invoicing since 2017. For 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 UAE format, the sending over Peppol and the reporting to the Federal Tax Authority (FTA). Don't have an e-invoicing solution yet? With onFact you are ready for the UAE mandate in just a few minutes!

Key dates

Businesses can already join voluntarily since 1 July 2026. Not appointing an ASP on time can lead to a penalty of AED 5,000 per month of delay, and every invoice that is not issued electronically on time can cost AED 100 (up to AED 5,000 per month).

What is an e-invoice?

An e-invoice is more than a PDF. A PDF is really nothing more than a digital copy of a paper invoice, and it is difficult for the recipient to process automatically: what exactly is the invoice date, the amounts, the VAT rates, …? Good AI algorithms exist for this (in onFact too), but this recognition is often complex. An e-invoice contains structured information that a computer can read easily and correctly. This makes 100% automatic processing of every invoice field possible.

In the UAE, every e-invoice must follow the PINT AE format: an XML file with all mandatory invoice data, including your Tax Registration Number (TRN), the VAT amounts in AED and the type of transaction. Once e-invoicing is mandatory for your business, a PDF is no longer a valid invoice for B2B and B2G transactions.

What is Peppol?

Peppol is a network over which invoices can be sent and received, very similar to email, but only for business documents. Every business has an inbox with its own address, the Peppol ID. In the UAE, this address is based on your Tax Identification Number (TIN), the first 10 digits of your TRN: 0235: followed by your TIN. This way your invoicing software can easily find the address of the other party.

In the UAE, you don't connect to Peppol directly, but through an Accredited Service Provider. The ASP validates your e-invoice, delivers it to your customer's ASP and reports the tax data to the FTA. This is called the five-corner model: seller, seller's ASP, buyer's ASP, buyer and the FTA.

What are the benefits of e-invoicing?

This obligation need not be a disadvantage for your business; it even has some interesting benefits:

• Time savings: your purchase invoices all arrive in the same place, directly in your software. You no longer need to collect paper invoices, invoices by email or invoices from online portals: they are automatically collected in your onFact account, and you easily pass them on to your accountant.
• More efficient processing: invoices are digitally readable, so you never have to retype anything. onFact reads your invoice completely and takes over all amounts, dates and payment information.
• Faster payments: your invoices arrive instantly in your customer's system, without being lost in the mail or in a spam folder.
• Security: every sender on the Peppol network is verified, so fake invoices can no longer be sent.
• Fewer tax errors: every invoice is validated before it is sent, so errors in VAT amounts or mandatory data are caught immediately.

How to get ready with onFact

1. Create your onFact account and enter your company details, including your TRN.
2. Appoint Storecove as your Accredited Service Provider in the EmaraTax portal before your deadline.
3. Activate e-invoicing in onFact and check your Peppol ID.
4. Keep invoicing as usual: onFact sends your invoices as e-invoices and receives your suppliers' e-invoices automatically.

Also for sales to consumers?

Do you only sell to consumers? B2C invoices are not yet in scope of the UAE mandate, so for now you don't need to send e-invoices to your customers. However, your suppliers will send you e-invoices, so you will still need to be able to receive them through an ASP. This means that even as a B2C business, you need suitable invoicing software.

Mandatory e-invoicing requires an adjustment in the administration of virtually every business in the UAE, but it also brings many benefits. So it pays not to wait until your deadline: start e-invoicing with onFact now!

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