Which transactions are covered by e-invoicing rules in the UAE?

The UAE e-invoicing system generally covers business-to-business (B2B) and business-to-government (B2G) transactions that fall within the scope of the legislation.

For an in-scope transaction, the supplier is required to issue and transmit an electronic invoice through the Electronic Invoicing System. Buyers are also required to receive and process electronic invoices through the system. Electronic credit notes are covered as well, including situations where a transaction is cancelled, the consideration is reduced, a refund is issued, or an administrative or numerical error needs to be corrected.

Not every transaction is automatically covered. The legislation provides specific exclusions, including certain government transactions carried out in a sovereign capacity, specific international passenger transportation services provided by airlines, certain airline ancillary services, and specified exempt financial services.

B2C transactions are currently outside the UAE e-invoicing mandate, subject to future regulatory changes.

Key points

• B2B transactions are within the scope.
• B2G transactions are within the scope.
• Electronic invoices and credit notes are covered.
• B2C transactions are currently outside the mandate.
• Specific exclusions apply to certain industries and transaction types.