The UAE e-Invoicing Mandate 2025: Key Updates for Tax, AP, and AR Professionals

The United Arab Emirates (UAE) is stepping firmly into the next phase of digital tax transformation with the rollout of its mandatory electronic invoicing (e-invoicing) system.

Designed and mandated by the Ministry of Finance (MoF) and Federal Tax Authority (FTA), this initiative aims to digitize all value-added tax (VAT) invoices to enhance compliance, transparency, and efficiency across industries.

Updated timelines for UAE e-invoicing

Following recent announcements in September 2025, the UAE e-invoicing mandate will launch in a phased manner starting July 1, 2026, as a pilot phase with mandatory compliance deadlines varying by business size:

• July 1, 2026: Pilot phase begins with a selected group of taxpayers
• July 31, 2026: Businesses with annual revenues of AED 50 million or more must appoint an Accredited Service Provider and implement the e-invoicing system by January 1, 2027.
• March 31, 2027: Businesses with revenues below AED 50 million must appoint an Accredited Service Provider and implement the e-invoicing system by July 1, 2027.
• October 1, 2027: Government entities must comply fully.

More information can be found in the government announcement.

A Peppol-based framework

The UAE has adopted a decentralized model for e-invoicing based on the Peppol Network, an internationally recognized digital document exchange framework widely used for electronic invoicing (also mandated in countries such as Belgium). This is sometimes referred to as the “five-corner model” because it involves the following participants:

• Supplier systems generating invoices.
• Buyer systems receiving invoices.
• Accredited Service Providers (ASPs) authorized by the MoF, acting as intermediaries who validate, transmit, and report e-invoice data.
• The Federal Tax Authority (FTA), which receives real-time invoice reports for VAT compliance monitoring.

The system infrastructure relies heavily on ASPs, which businesses must contract to facilitate their e-invoicing compliance. Service providers undergo strict accreditation criteria, including technical certifications like Peppol certification, ISO standards on security and business continuity, and tax-specific compliance. Paper, scanned, or image-based invoices will no longer be permitted once the mandate is in place. The Peppol PINT-AE framework will be used as the format for invoice transfers.

Main supplier obligations under the mandate

Suppliers registered for VAT in the UAE must:

• Connect their invoicing system to an accredited ASP to report and transmit e-invoices as per UAE compliance rules.
• Ensure all required data is available.
• Begin issuing e-invoices via Peppol by the relevant mandatory date based on their revenue size.

Main buyer responsibilities and compliance

Buyers in the UAE also face new responsibilities to ensure compliance and smooth operations:

• Connect their AP system to an accredited ASP to receive and report e-invoices as per UAE compliance rules.
• Ensure systems can handle new data provided.
• Register as a receiver with Peppol before the relevant mandatory date based on their revenue size.

Prepare for what’s next in UAE e-invoicing

As the UAE moves toward full e-invoicing adoption, businesses should start preparing their systems, processes, and partnerships well in advance of the first compliance deadlines. Early action will help minimize disruption, ensure readiness for Peppol connectivity, and maintain ongoing VAT compliance.

For the latest updates on UAE e-invoicing timelines and requirements, visit our UAE Compliance Map—your central resource for monitoring regulatory developments.

There, you can also download our Global E-Invoicing and Tax Compliance Fact Sheet to understand how Basware helps organizations stay compliant across markets.