e-Invoicing in United Arab Emirates - FAQ

E-invoicing in the UAE refers to the electronic issuance and receipt of invoices, aimed at replacing traditional paper invoices to enhance efficiency, accuracy, and compliance with VAT regulations.

E-invoicing will become mandatory in phases, starting with cross-border transactions in July 2025, followed by all transactions by July 2026.

The Ministry of Finance (MoF) and the Federal Tax Authority (FTA) are the primary authorities overseeing e-invoicing in the UAE.

The benefits of e-invoicing include faster processing, reduced errors, improved compliance with VAT regulations, enhanced transparency, and support for sustainability efforts by reducing paper usage.

Key compliance requirements include ensuring VAT compliance for transactions over AED 10,000, adhering to the Peppol-based invoicing model, and proper archiving of invoices for at least 5 years.

Yes, the UAE allows offshore archiving of e-invoices, provided they are accessible and comply with local regulations.

Digital signatures are used to verify the authenticity and integrity of e-invoices, ensuring that they meet legal and regulatory requirements.

Businesses should start by familiarizing themselves with the new regulations, adapting their invoicing systems to meet compliance requirements, and ensuring proper archiving of e-invoices.

Certain sectors, such as transportation, banking, and insurance, may be exempt from the e-invoicing mandate, except for transactions directly related to their primary business activities.

If an e-invoice is rejected, businesses should review the errors, correct them, and resubmit the invoice. It's also advisable to contact the buyer to confirm the details before resubmission.

The Service Provider validates all data fields and reports them to the FTA/MoF. The model includes exchange and reporting, with fields verified before exchange.

Businesses in the UAE must engage an Accredited Service Provider to issue and deliver e-invoices, using the buyer's electronic address on the Peppol network.

Yes, an invoice can include taxable, exempt, and out-of-scope supplies together in a single document.

Each VAT group member must have a unique endpoint with an ASP for transaction compliance under UAE regulations.

Overseas buyers registered with Peppol require an endpoint; otherwise, invoices can be shared via email if outside Peppol.

The integration between businesses and UAE ASPs is near real-time, promoting efficient data flow and compliance.

Overseas buyers registered with Peppol require an endpoint; otherwise, invoices can be shared via email if outside Peppol.

If an error is found, the ASP returns the invoice to the issuer for correction before resubmission.

Yes, Peppol uses AS4 for C2 to C3. The MoF/FTA regulates API connections between C2 and C5 for secure data transfer.

Yes, an initial list of Accredited Service Providers is expected to be published by September 2024.

Yes, businesses ready to exchange e-invoices can join the pilot program with an Accredited Service Provider.