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Public Other countries Author: Ema Stamenković
The UAE mandates e-invoicing for VAT-registered businesses starting July 1, 2026, with a phased rollout, possibly in four stages, prioritizing larger companies. Accredited service providers must validate invoices, transmit them, and report to the FTA instantly.
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The UAE will mandate e-invoicing for all VAT-registered businesses starting July 1, 2026, with a phased rollout, possibly in four stages, prioritizing larger companies. Details on phase assignments and voluntary participation remain unclear.

Businesses must use accredited service providers (ASPs) licensed by the Federal Tax Authority (FTA) to map accounting software to platforms that validate invoices, transmit them to recipients, and report to the FTA instantly. The Peppol technology underpins this system, enabling data mirroring with other countries.

Main uncertainties include how data traffic will be managed across multiple ASPs and whether businesses will face per-invoice fees or subscriptions. Past UK experience suggests costs could be low, potentially Dh2.50 per invoice, but it’s unclear who will bear or invoice these costs.

All tax invoices require at least 13 data points. Mapping software to ASPs assumes uniform principles across providers. Large businesses face challenges, such as managing multiple VAT codes for travel costs (5% for UAE, 0% for abroad, and a non-GCC category), requiring significant systems work. With only 10 months until launch, preparation efforts, comparable to the 2017 VAT rollout, demand substantial resources.

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