The UAE is moving business invoices from PDFs and paper to structured electronic data that flows between approved providers and the Federal Tax Authority (FTA). For larger companies, the first deadline is only days away.
What is changing
Today, many businesses email a PDF invoice and the buyer types it into their own system. Under the new rules, set out in Ministerial Decisions No. 243 and 244 of 2025, an e-invoice is a structured data file. It is sent through an accredited service provider (ASP), delivered to the buyer's provider, and the tax data is reported to the FTA.
Key dates
Your dates depend on your revenue. Revenue here means your gross income in your most recent accounting period. Pick your group:
Which group are you in?
Tap one to see your deadlines.
The Phase 1 provider deadline was originally 31 July 2026. The Ministry of Finance extended it to 30 October 2026, but the 1 January 2027 go-live date did not move. A pilot with selected taxpayers began on 1 July 2026, and any business can join voluntarily before its mandatory date.
Who is covered
In scope
- Business-to-business (B2B) sales
- Business-to-government (B2G) sales
- Businesses that join voluntarily before their date
Out of scope (main exclusions)
- Sales to consumers (B2C)
- Government bodies acting in a sovereign capacity
- Airline international passenger tickets
- Certain VAT-exempt or zero-rated financial services
If you are part of a VAT group or have several legal entities, check each entity's position early. The exclusions have conditions, so confirm the details with your tax adviser.
How it works: the five-corner model
The UAE uses a "five-corner" model based on the international Peppol network. You never send the invoice straight to your customer. It always passes through two accredited providers.
That means your system must hold correct, complete data, such as buyer TRNs, item details and tax amounts. A provider can only pass on what your system gives it.
The fines
Administrative penalties are set by Cabinet Decision No. 106 of 2025. Businesses taking part voluntarily are not fined until their mandatory date arrives.
Not implementing the system or not appointing an accredited provider on time.
Not issuing or sending an e-invoice on time.
Capped at AED 5,000 per monthNot issuing or sending an e-credit note on time.
Capped at AED 5,000 per monthNot telling the FTA about a system failure on time.
Your 7-step checklist
Tick off each step as your team completes it.
E-invoicing readiness
From first check to go-live.
Want a quick score? Our free E-Invoicing Readiness Check shows how ready your systems are in a few minutes.
How TBS Group can help
For most businesses, the hard part is not choosing a provider. It is getting clean, structured data out of their own system. TBS Group connects ERP and accounting systems, including Odoo, SAP Business One and custom platforms, to accredited providers. We fix master data and set up the error handling your finance team needs.
Not sure where to start?
Tell us which system you use and your revenue group. We'll map out the steps to go-live.
This article is general guidance based on public information available on 15 October 2026. It is not tax or legal advice. Dates and rules can change, so check the latest Ministry of Finance and FTA announcements or speak to your tax adviser before acting.