For e-invoicing in the UAE, electronic invoices must be in the XML format specified by the PINT AE Data Dictionary. This format is built on the Peppol BIS Billing 3.0 and UBL 2.1 standards. JSON is also used, but only in certain situations or by some service providers as an alternative. For Federal Tax Authority (FTA) compliance, XML is still the legal standard.
XML Format for E-Invoicing in the UAE
In UAE e-invoicing, the XML format is a structured markup language that lets payment data be processed, validated, and sent automatically. It has required areas like the invoice number, tax identification numbers, information about the buyer and seller, tax breakdowns, and line item details.
PINT AE standards control the structure to make sure that businesses, service providers, and the FTA can all work together. Standardization cuts down on mistakes, fraud, and having to enter data by hand. This makes real-time VAT filing possible and auditing easier.
How to Use JSON Format
JavaScript Object Notation, or JSON, is a simple data format that is becoming more and more popular for exchanging data because it is small and easy to use in web and mobile apps. The FTA accepts JSON, but it is mostly used by a small group of Accredited Service Providers and integrated systems to send invoices and do internal processing.
Structured schemas for JSON invoices are similar to those for XML, but they give developers greater autonomy. Still, full compliance means following the UAE’s e-invoicing rules, which mostly say to use the XML format.
Why Would You Use XML E-invoicing?
It is the goal of XML e-invoicing to give businesses a standard way to send and receive bills online. Companies that use XML don’t have to deal with compatibility issues and can easily share billing information between different systems and apps.
The following are some specific reasons why most businesses use XML e-invoicing:
1. Being Readable
As long as the invoice fields are saved in XML format, programs can instantly read the values in those fields. Following that, the program can handle the bill by doing things like checking it and more.
2. Being Compatible
Service providers that offer e-invoicing work with other service providers. Most systems can work with XML because it is a widely used format. This makes it a popular choice for businesses that need to share data with other parties.
3. Efficacy
It is easy and quick to send and receive invoices online with XML invoicing. It saves your business time and money because it gets rid of the need to print and mail bills.
4. Safety
It is safe to send and receive invoices online with XML invoicing. It helps keep private data safe and stops scams and data theft.
5. Follow-through
Compliance-checked XML billing lets you send and receive bills online. There are rules about how to make invoices, and this software works for businesses of all kinds.
How Do I Make an XML Invoice?
An industry standard for setting up computer invoices is the XML invoice format. The structure and content of an invoice are set by it, which makes it easy to share between systems and apps. The XML schema description (XSD) tells us how to structure and what to put in an XML document. The XML invoice format is based on this.
Examples of XML invoices
An XML invoice is basically an invoice saved in an XML file. It has XML codes and the ending “.xml” at the end of the file name. XML bills are made up of tags and plain text. It’s the plain text that will be kept, and the tags that describe it.
How does XML e-billing work?
XML is used to format bills into an electronic document, which is how XML e-invoicing works. Here are some rules for designing XML schemas:
- Put all the information in the statement inside a root element.
- Make the statement stand out by using a header element.
- Put the payment information in a body element.
- To show the different parts of the statement, use child elements.
- To find the data pieces, use attributes.
How the UAE Standard e-Invoice Is Put Together (XML Format)
The PINT AE Data Dictionary sets out the structured XML style that the UAE Standard e-Invoice uses. This building is made up of several parts. Depending on the type of invoice and the details of the transaction, each part has certain data elements that must be included, must be conditionally present, or must be absent. Here are some of the most important parts of the UAE e-Invoice structure:
1. Billing Title
This part has important details about invoices:
- The invoice number, IBT-001, is a unique number that can be used to find it.
- IBT-002 (Invoice Issue Date): This is the date that the invoice was sent out (YYYY-MM-DD).
- This code, IBT-003, tells you whether the paper is a tax invoice, a credit note, or a debit note.
- IBT-005 (Invoice Currency Code): This code tells you the invoice currency in ISO 4217, such as AED or USD.
2. Details about the seller and buyer
In this area, information about both parties to the deal is written down:
- Name of the Seller (IBT-027); Name of the Buyer (IBT-044)
- The Tax Registration Numbers (TRNs) are IBT-031 and IBT-048.
- Electronic addresses (IBT-034 and IBT-049) are needed for digital delivery.
- IBG-05 and IBG-08 are postal address groups. They should include Emirates district codes like DXB and AUH.
3. Items on the line
There needs to be a different line item for each good or service:
- The items are IBT-153 (Item Name) and IBT-154 (Item Description).
- IBT-129 (Amount Billed) and IBT-146 (Item Net Price)
- IBT-151 is the invoiced item tax category code, and IBT-152 is the tax rate.
- The IBT-158 is an Item Classification Identifier. – HSN Code (for things)
- BTUAE-17 is the Service Accounting Code, or SAC Code.
4. How the Taxes Work
This part shows the VAT information that is used for various line items:
- Payable Amount (IBT-116), which is the net amount before VAT
- IBT-117 (Amount of Tax) – VAT added
- The tax category code is IBT-118. – Normal, Zero-rated, Exempt, and Reverse Charge
- IBT-119 (Tax Rate): Shown as a number, like 5%
5. Amounts and Payment Information
Here are the final bill calculations:
- IBT-109 (Total of the Bill Without Tax)
- IBT-110 (Amount of Tax Due)
- IBT-112 (Total Bill with Tax)
- IBT-115 (Amount Owed)
- IBT-081 (Payment Means Type Code): For example, a bank payment or a credit card
Required, Elective, and Conditional Fields
There are three types of data fields in an e-invoice in the UAE. These are Mandatory (M), Optional (O), and Conditional (C). The method is based on the PINT AE Data Dictionary. This category tells the invoice whether or not a field needs to be there and when it needs to be there.
Mandatory Fields (M)
The XML must always have these fields. If you don’t fill in any required fields, the payment won’t pass validation and can’t be sent.
- IBT-001 is an example of an invoice number.
- IBT-002: Date of Invoice Issue
- The seller and buyer’s tax registration number (TRN) is IBT-031 and IBT-048.
- IBT-116: Amount That Is Taxable
- IBT-117: Amount of Tax
- IBT-112: Total Amount of the Bill with Tax
Extra Fields (O)
You don’t have to fill in these areas, but you can if they are important to the transaction. They give more background or business-related knowledge.
For example:
- IBT-072: The Real Date of Delivery
- IBG-32: Item Attributes (information about the properties of things or services that have been invoiced)
- IBT-159: Country of Origin of the Item
Fields with Conditions (C)
There are conditions that must be met before these areas can be filled out. Whether or not they are included relies on the values of other fields or the type of transaction. Examples:
- BTUAE-04 – Currency Exchange Rate (must be filled out if the currency of the transaction is not AED)
- This is the Service Accounting Code (BTUAE-17), which is needed for services.
- BTUAE-15: Type of Seller Legal Registration Identifier (must be filled out if registration ID is included)
- IBT-111: Total Tax Amount on Invoice in Accounting Currency (must be filled out if accounting currency is used)
To sum up, companies must mostly use the XML format that the UAE Ministry of Finance specifies for e-invoicing to be legal in the UAE. JSON can be used when it’s possible to, but XML is still needed for processing and sending data to the Federal Tax Authority.
This method helps companies follow VAT rules, cut down on mistakes, and speed up the invoice filling process.