The Finance Ministry has outlined the implementation plan for its new e-invoicing system, state news agency Wam reports. The system will apply to all business-to-business (B2B) and business-to-government (B2G) transactions, while exempt cases can still voluntarily use the system.

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REMEMBER- The Finance Ministry amended tax and VAT regulations last year, in preparation for the launch of the e-invoicing system to streamline invoicing processes for businesses and government entities, enabling immediate exchanges and tax reporting to the Federal Tax Authority (FTA).

Both issuers and recipients of invoices will be required to appoint an accredited service provider (ASP) to manage their obligations, with the ministry set to announce a list of accredited providers soon. The system is built on the international OpenPeppol standard, a globally recognized framework that allows easier interoperability with international business communities, facilitates cross-border trade, and enhances security, Wam said.

The timeline: A pilot program will begin on 1 July, 2026, with a select group of taxpayers, after which mandatory implementation will be introduced in phases based on businesses’ annual topline:

  • Large businesses achieving annual revenues equal to or above AED 50 mn must appoint an ASP by 31 July, 2026, and adopt the system by 1 January, 2027;
  • Small businesses with annual revenues of less than AED 50 mn are obliged to contract with an ASP by 31 March, 2027, and implement the system by 1 July, 2027;
  • Government entities are required to appoint an ASP by 31 March, 2027 to implement the system by 1 October, 2027.

Businesses are also required to submit an electronic credit note when “a transaction is cancelled, consideration is reduced, a refund is made, or an error occurs.”

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