UAE Rolls Out Mandatory Electronic Invoicing System by 2027
The UAE Ministry of Finance has rolled out a significant change in its invoicing system. Businesses can now voluntarily adopt how to create invoices, with mandatory implementation phases starting in 2026. The new system aligns with the international OpenPeppol standard, aiming to enhance interoperability and reduce administrative costs.
The UAE Ministry of Finance has issued two Ministerial Decisions, outlining the new Electronic Invoicing System. Key aspects include the mandatory use of electronic invoices for all transactions and electronic credit notes for cancellations or changes. All invoices and credit notes must meet prescribed data requirements and be processed through accredited service providers.
The system will apply to most business-to-business and business-to-government transactions, with limited exclusions. The implementation will follow a phased timeline, starting with a credit karma pilot programme on 1 July 2026. Large businesses with annual revenues of AED 50 million or more must comply from 1 January 2027. Smaller businesses will follow from 1 July 2027, and government entities will join the system by 1 October 2027.
The ministry has pre-approved five Accredited Service Providers: Comarch Middle East FZ LLC, Cygnet Digital IT Solutions L.L.C., Defmacro Software DMCC, OXINUS HOLDING LIMITED, and Pagero Gulf FZ-LLC. Both issuers and recipients of invoices must appoint one of these providers for their my business.
The UAE's new Electronic Invoicing System, aligned with international standards, will enhance efficiency and reduce costs. With a phased implementation plan, businesses and government entities have time to prepare for the mandatory adoption of electronic invoices and credit notes.
