What is an eInvoice?

What is e-Invoicing in UAE?

E-invoicing in the UAE refers to the electronic creation, exchange, and storage of invoices in structured digital formats under the government's Electronic Invoicing System (EIS).

This initiative supports the UAE's broader strategy to digitize tax administration, enhance VAT compliance, and align with global best practices.

A valid UAE e-invoice must be issued in XML or JSON (using standards like UBL or PINT), transmitted via an Accredited Service Provider (ASP), and reported to the FTA's e-Billing System. Unstructured formats such as PDFs, images, or paper invoices will not qualify as valid e-invoices.

e-Invoicing Implementation Timeline

Ministerial Decisions No. 243 and 244 of 2025 set out a phased rollout for the Electronic Invoicing System (EIS).

e-Invoicing Requirements in UAE

To comply with the UAE's Electronic Invoicing System, businesses must meet the following core requirements:

• Digital Format Only: Invoices must be created in XML or JSON formats. PDFs or paper invoices are not valid.
• Structured Standards: Use recognized standards like UBL (Universal Business Language) or PINT (Peppol Invoice Standard).
• Transmission Through ASP: All invoices must be sent and received through an Accredited Service Provider (ASP) authorized by the Ministry of Finance.
• Real-Time Submission: Invoices and credit notes must be transmitted within 14 days of the transaction.
• Mandatory Data Fields: Invoices must contain all fields defined in the Ministry's Data Dictionary (seller details, TRN, tax breakdown, etc.).
• Digital Credit Notes: Credit notes must be issued electronically in the same structured format and system.
• Data Storage in UAE: All invoice and credit note data must be stored within the UAE, as per the Tax Procedures Law.
• System Failures: Any technical failure must be reported to the FTA within 2 business days.

e-Invoicing Process in UAE

Implementing e-invoicing in the UAE follows a structured process driven by your ERP system and your chosen Accredited Service Provider (ASP):

1. Appoint an Accredited Service Provider (ASP): Select an FTA-accredited ASP. The ASP collaborates with your technical or ERP team to ensure all fields in the FTA's data dictionary can be captured.
2. Map ERP Data to Standard Fields: Invoice information (seller/buyer details, TRN, taxable amounts, VAT, etc.) is mapped to the required structured fields (XML/JSON).
3. Convert to Required Format: The ASP converts invoice data into XML or JSON using standards like UBL or Peppol PINT.
4. Validate and Enrich: The ASP validates the data, corrects errors, and enriches the invoice with mandatory fields or codes to ensure compliance.
5. Real-Time Transmission: The ASP sends the invoice to:
   • The FTA's e-Billing system for monitoring and compliance
   • The buyer's ASP, in a processable format
6. Secure Storage and Access: Both issuer and recipient must securely store e-invoices within the UAE and ensure they remain accessible for audits, reconciliations, and VAT filings.

e-Invoicing Framework in UAE (DCTCE & Peppol 5-corner Model)

The UAE's CTC e-invoicing framework, known as the DCTCE model, is based on the Peppol "5-corner" model. It involves five main components:

• Issuer: The party generating the invoice.
• Receiver: The party receiving the invoice.
• E-Billing System by FTA: Integrates with Peppol PINT for data exchange and acts as a central repository.
• Sender ASP: Validates and transmits the invoice to the FTA and the receiver's ASP.
• Receiver ASP: Validates the received data and forwards it to the buyer.

Scope of e-Invoicing & Exemptions in UAE

The Electronic Invoicing System applies broadly to most taxable business transactions conducted in the UAE.

Included in Scope

• All VAT-registered persons engaged in taxable business transactions.
• B2B and B2G transactions.
• Electronic invoices and credit notes issued through the EIS.

Exemptions (Article 4 of Ministerial Decision No. 243/2025)

• B2C transactions.
• Government entities acting in a sovereign capacity, not competing with the private sector.
• International passenger air transport where electronic tickets are issued.
• Ancillary airline services with Electronic Miscellaneous Documents (EMD).
• International transport of goods by air (temporary exclusion for 24 months from system go-live).
• Financial services that are VAT-exempt or zero-rated.
• Any other transactions as determined by the Minister of Finance.

Role of Accredited Service Providers (ASPs)

Under UAE e-invoicing regulations, all taxpayers subject to the mandate must appoint an Accredited Service Provider (ASP) before their go-live date. ASPs are central to ensuring compliance, accuracy, and secure transmission of e-invoices.

Key Functions of ASPs

• Data Mapping: Align ERP/accounting data to the FTA's structured XML/JSON formats (UBL/PINT).
• Validation: Ensure invoices comply with VAT law, schema rules, and Peppol standards.
• Data Enrichment: Add digital signatures, tax identifiers, and mandatory codes.
• Format Conversion & Correction: Convert from PDFs, CSVs, or raw ERP exports into accepted e-invoice formats.
• Transmission: Route invoices securely to the FTA and buyer's ASP in real time.
• Compliance Reporting: Track submission deadlines and statuses to meet statutory timelines.
• Security & Authenticity: Apply encryption and tamper-proof measures.
• Integration Support: Offer APIs and onboarding for ERP integration.
• Monitoring & Notifications: Alert for failures and provide fallback procedures.
• Archival & Storage: Store e-invoices and data within the UAE as per retention rules.

Mandatory Fields of an e-Invoice in the UAE

Every e-invoice and e-credit note must follow the UAE e-Invoicing Data Dictionary and Peppol/UBL standards.

UAE e-Invoicing Penalties and Fines (November 2025)

Cabinet Decision No. 106 of 2025 defines administrative penalties for non-compliance with the Electronic Invoicing System.

How to Prepare for e-Invoicing (Effective July 2026)

Businesses should start preparing early to ensure technical readiness and full compliance.

1. Understand the Timeline and Scope: Review when your business falls into the phased rollout. Large entities (≥ AED 50M) must comply first, followed by smaller VAT-registered businesses and government bodies.
2. Appoint an Accredited Service Provider (ASP): Select an FTA-accredited ASP and complete onboarding before July 2026. Ensure the ASP supports Peppol standards such as UBL and PINT.
3. Upgrade ERP and Accounting Systems: Ensure your ERP can produce structured XML/JSON invoices, support digital signatures, and integrate with your ASP.
4. Test During the Pilot Phase: Use the July–December 2026 window to integrate, test, and refine your workflows with the ASP and FTA sandbox.
5. Establish Data Governance and Storage: Implement secure, UAE-based storage for e-invoices and credit notes, with robust access control and retrieval processes.
6. Ensure Compliance and Reporting Readiness: Create internal policies for handling system failures, reporting incidents to the FTA, and training staff on new invoicing workflows.

How eInvoice Can Help Your Business with e-Invoicing in UAE

eInvoice is a pre-approved, FTA and MoF-compliant Accredited Service Provider (ASP) that helps businesses comply with the UAE's e-invoicing mandate using a Peppol-ready solution.

• Seamless Integration with the FTA Portal: Connect your ERP or accounting system with the FTA's e-billing system for real-time invoice submission using XML or JSON.
• Peppol-Ready Implementation: Align with the UAE's CTC model using Peppol standards like UBL and PINT.
• End-to-End E-Invoicing: Generate, submit, receive, and track e-invoices from a single platform, including status updates and notifications.
• Web-Based Portal: Manage the entire e-invoicing lifecycle through a user-friendly, browser-based interface.
• 100% Compliance: Achieve full compliance with UAE e-invoicing regulations, reducing the risk of penalties and audit findings.

UAE Government e-Invoicing Resources

Use the following official resources for the latest guidance, legislation, and technical documentation.