Dear Clients,
The Ministry of Finance of the United Arab Emirates will begin implementing a new electronic invoicing system from 2026, applicable to transactions between companies established within the UAE. Under this regulation, all invoices must be issued through electronic invoicing software that complies with the international OpenPeppol standard. This software must be integrated with the Federal Tax Authority (FTA) central e-invoicing platform through one of the service providers accredited by the Ministry.
The implementation of the new system will take place gradually, beginning with a voluntary pilot program from 1 July 2026, before becoming mandatory in 2027. The new requirements will apply to business-to-business (B2B) and business-to-government (B2G) transactions, while transactions with private individuals (B2C) will remain outside the scope of the regulation. Both parties involved in each transaction—the supplier and the purchaser—must use the new system.
The applicable implementation deadlines are as follows:
- Companies with annual revenue of AED 50 million or more must have the new software configured by 31 July 2026, with mandatory use commencing no later than 1 January 2027.
- Companies with annual revenue below AED 50 million will have until 31 March 2027 to configure the software and must begin using it before 1 July 2027.
- Companies wishing to participate voluntarily in the pilot program, provided they already use accredited software, may begin implementation from 1 July 2026.
All affected businesses are encouraged to review their current invoicing systems and adapt them to comply with the Ministry of Finance’s requirements, ensuring integration with officially accredited service providers listed by the competent authorities.
This initiative aims to promote a more transparent and digitally driven economy in the United Arab Emirates, strengthen regulatory compliance, and contribute to reducing the informal economy.
Should you have any questions regarding these new requirements, please do not hesitate to contact us.
