UAE E-Invoicing – Work Mechanism & Key Deadlines

As part of the UAE’s national digital transformation strategy, the Federal Tax Authority (FTA) is implementing a mandatory E-Invoicing system for all VAT-registered businesses. This framework aims to standardize the creation, exchange, validation, and reporting of tax invoices across the country, ensuring efficiency, accuracy, and compliance.

This article explains how the E-Invoicing system works and highlights the key deadlines that businesses must adhere to.

How the UAE E-Invoicing System Works

The UAE E-Invoicing framework introduces a structured digital workflow that guarantees transparency and compliance with VAT regulations. The process consists of several key steps:

1. Digital Invoice Creation

All tax invoices and credit/debit notes must be generated in a structured electronic format (handwritten or standard PDFs are not allowed). Required fields include:

Supplier information
Customer information
VAT Registration Number
Invoice amount
VAT amount
QR code

2. Real-Time Validation

Invoices are electronically transmitted to an Accredited Service Provider (ASP). The ASP validates the invoice to ensure it meets FTA standards before sending it to the recipient.

3. Reporting to the Federal Tax Authority

Once validated, invoice data is securely sent to the FTA’s E-Invoicing platform in real-time or near-real-time.

4. Delivery to the Buyer

After successful validation, the buyer receives the invoice electronically via the ASP or the company’s accounting/ERP system.

5. Secure Digital Storage

All e-invoices must be stored electronically and remain accessible for audits and compliance checks.

Key Deadlines You Must Follow

Engaging an Accredited Service Provider (ASP)

Large Businesses (Turnover ≥ AED 50 million): Deadline 31 July 2026
Small and Medium Enterprises (Turnover < AED 50 million): Deadline 31 March 2027

Mandatory Go-Live Dates

Large Businesses: 1 January 2027
SMEs: 1 July 2027
Government Entities: 1 October 2027

Optional Early Adoption

Voluntary early implementation is available starting 1 July 2026, allowing companies to test and transition smoothly before the mandatory phase.