The United Arab Emirates’ Ministry of Finance released Ministerial Decision No. 243 of 2025 and Ministerial Decision No. 244 of 2025 on September 29, 2025. These decisions set the E-Invoicing System’s scope, duties, and an orderly rollout in the UAE. We will talk about all the important parts of these two Ministerial Decisions in this blog.
What is E-Invoicing?
Sending, receiving, and sending invoices and credit note data in a structured electronic file that lets computers do the work automatically is called e-invoicing. The E-Invoicing System doesn’t accept PDF or paper invoices as proper e-invoices.
Scope of E-Invoicing in the UAE
To make it clear which businesses and transactions will be covered by the E-Invoicing System, the Ministry of Finance has stated its scope:
- There will be an E-Invoicing System for all companies in the UAE that do B2B (business-to-business) and B2G (business-to-government) transactions, unless they are specifically left out.
- Right now, B2C (business-to-consumer) transactions are not needed, which means that companies that only do business with consumers will not have to send out e-invoices.
UAE E-Invoicing Exclusions
The E-Invoicing System will not cover the following activities or people at this time:
- Entities run by the government that perform thier activities independently. and don’t compete with the private sector.
- Airlines offer international passenger transport services and give passengers electronic tickets.
- Ancillary airline services are supplied directly to passengers upon the issuance of an electronic miscellaneous document.
- Moving goods across international borders by air, where an airway bill is given. After the system goes into force, this exemption will only last for twenty-four months.
- financial services that don’t have to pay VAT or only have to pay VAT at a 0% rate.
- Any other deals or people that the Minister may decide in the future not to include.
How E-Invoicing Works in the UAE
The UAE’s Ministry of Finance has stated that E-Invoicing will be put in place in the following stages:
- July 1, 2026: Voluntary e-invoicing pilot phase begins.
- January 1, 2027: Mandatory e-invoicing for large businesses (revenue< AED 50 million).
- July 1, 2027: Mandatory e-invoicing for smaller VAT-registered businesses.
Emirates Uses the 5-Corner PEPPOL Model for Electronic Invoices
To improve tax compliance and digital transformation, the UAE has chosen the 5-Corner PEPPOL model for e-invoicing, which is in line with global standards. This model makes it easy for companies and the Federal Tax Authority (FTA) to send and receive invoices safely, so taxes can be filed in real time. The five main parts are the buyer, the sender access point (ASP), the FTA data platform, and the provider.
In the UAE, e-invoicing will be required gradually until July 2026-27. This move will lower the cost of handling invoices, make sure that rules are followed, and make it easier to do business across borders.
E-Invoicing System Requirement in the UAE
As part of the E-Invoicing System, the Ministry of Finance has laid out the rules that all businesses must follow:
- It is required that all invoices and credit notes be sent, received, and processed in a structured electronic file that can be processed automatically.
- Each company that sends and receives invoices needs to choose an Accredited Service Provider that has been accepted by the Federal Tax Authority. The Ministry will put out the list of approved companies.
- Within 14 days of the business transaction, an e-invoice or credit note must be sent and processed through the system by both the sender and the receiver. They must also report it to the FTA by the date set by the Ministry.
- In these situations, a credit note needs to be given:
- As soon as a deal is canceled
- When you return goods or services,
- When the worth of a product goes down,
- When there is a mistake on the bill
- All of the data areas and information that the Ministry of Finance says must be on every e-invoice and credit note are required.
- A owner can give an agent an invoice or a credit note, and the agent can also bill themselves if certain VAT rules are met.
- The Tax Procedures Law says that all bills, credit notes, and other related records must be kept in the UAE.
- Following the steps set by the Authority, any system failure must be reported to the FTA within two business days.
How Companies in the UAE Can Get Ready for the E-Invoicing Mandate
To make sure their processes are ready for the future and follow the UAE’s phased e-invoicing rollout, businesses should do the following:
Check Out How You Currently Bill and Keep Records
First, make a map of how invoices are made, checked, sent, and kept now. Find problems with automation, data accuracy, and being ready for compliance, especially when it comes to how VAT is handled and the forms of invoices.
Learn About the Conditions for PINT AE and FTA
Learn about the Peppol BIS Billing 3.0 standard and how it has been localized for the UAE (PINT AE). This means knowing the necessary areas for invoices, how to handle credit notes, and the business rules set by the FTA.
Find an E-Invoicing Tool That Follows the Rules
Pick a service that works with PINT AE right out of the box, lets you validate in real time, and links to both Peppol and the UAE’s main e-invoicing tool. SpendConsole was made just for this requirement and has built-in compliance features.
Link Up With Your Accounts or ERP Software
Connecting your e-invoicing company to your current financial systems will keep your billing processes running smoothly and cut down on the number of steps that need to be done by hand.
Allow Validation and Peppol Sharing in Real Time
Make sure that your system checks each payment against the FTA and PINT AE rules before sending it. Make sure it can send and receive structured invoices through Peppol so that it can swap between businesses and consumers as needed.
Start Internal Testing and Getting Suppliers Ready
Begin making organized invoices and exchanging them with your key partners to find problems early on. Make sure your reference data, TRNs, VAT codes, tax estimates, and VAT codes are all clean and in the right place.
Financial and Legal Teams Should Be Trained
Give internal teams clear instructions on how to use new methods, validation processes, audit trail features, and how to handle errors. So, once the order goes live, there will be accountability and easy adoption.
Conclusion
Using e-invoicing in the UAE is a big step toward going digital, which will help people pay their taxes, cut down on fraud, and make businesses run more smoothly. Structured UAE E-invoicing rules are still being put in place by the FTA, so companies need to stay up to date and use the right solutions to make sure they are compliant.
Get in touch with MadronoAI right away for expert help setting up UAE E-invoicing solutions.