| Image Credits: Woman Using Computer and Smart Phone
In anticipation of a 2026 e-Invoicing rollout, UAE authorities have launched a dedicated portal section to provide information on the new electronic invoicing system. This initiative aims to streamline tax reporting through simplification, standardization, and automation.
KEY POINTS OF THE UAE’S E-INVOICING SYSTEM
E-Invoicing Introduction: Set to launch in 2026, the e-Invoicing system will enable near real-time exchange of invoices and tax reporting to the UAE Federal Tax Authority (FTA).
Structured Format Requirement: E-Invoices must be in a structured electronic format, facilitating seamless data exchange between suppliers and buyers, and reporting to the FTA. Formats like PDFs, Word documents, images, scanned copies, or emails will not qualify as e-Invoices.
OVERVIEW OF THE UAE E-INVOICING MODEL (DECENTRALIZED CONTINUOUS TRANSACTION CONTROL AND EXCHANGE – DCTCE)
Step 1: Supplier (Corner 1) sends e-Invoice data in an agreed format to their UAE-accredited Service Provider (Corner 2).
Step 2: Corner 2 validates the e-Invoice data, converting it into the UAE-standard XML format if necessary.
Step 3: The e-Invoice is sent in XML format to the buyer’s UAE-accredited Service Provider (Corner 3).
Step 4: Corner 3 acknowledges receipt and forwards the e-Invoice to the buyer (Corner 4).
Step 5: Corner 2 reports tax-related e-Invoice data to the FTA’s central data platform (Corner 5).
Step 6: Corner 5 confirms successful reporting to Corner 2, which then updates Corner 1 and forwards all acknowledgments to the supplier.
IMPLEMENTATION TIMELINE
Q4 2024: Accreditation of UAE Service Providers begins.
Q2 2025: Legislative updates related to e-Invoicing are set to be announced.
Q2 2026: Phase 1 of e-Invoicing reporting goes live.
Please refer to official UAE authorities’ communications for the most accurate and up-to-date information on tax-related matters.
