UAE mandates e-invoicing for VAT-registered businesses

The United Arab Emirates is implementing mandatory e-invoicing for all VAT-registered entities. Under regulations from the Federal Tax Authority (FTA), businesses must transition to digital invoicing using structured, machine-readable XML formats that integrate with a centralized clearance system.

New updates from the Ministry of Finance have modified the accreditation process for service providers. Under Ministerial Decision No. 168 of 2026, the previous preliminary approval stage for providers has been scrapped. Service providers must now complete specific assessments and testing to receive full accreditation before they can offer electronic invoicing services.

Deadlines vary by business scale. Companies with annual revenues of Dh50 million or more face an October 30 deadline to appoint an accredited provider. Larger businesses within scope must have their e-invoicing systems fully implemented by January 1, 2027. For other VAT-registered businesses, the mandate is set to begin on January 1, 2026.