E-Invoicing Implementation Services in UAE

Find out where the invoice data comes from, like ERP, old systems, POS, accounting tools, and so on, if bills are made from different modules or front-end billing systems. Also, check to see if there are any gaps in the current billing systems and processes and see if they meet FTA standards.

Step 2: Update the master data

When making regular tax invoices, you have to fill in 50 fields, and when making business tax invoices, you have to fill in 49 fields. For VAT compliance, on the other hand, 15 of the 50 fields and 16 of the 49 fields were not needed. This means that users might not have knowledge about those areas in their master data, which is necessary for e-invoicing to be FTA-compliant.

Check the current master data for the provider and users to make sure it is correct. This includes their names, TRNs, addresses, VAT registration numbers, and other information.

Get rid of any information that isn’t needed and add new information as needed for the required areas of the e-invoicing law. To make sure that master data is recorded automatically and is checked, digital consumers and supplier onboarding is a must.

Step 3: Handle transaction data

Check out the services and goods that a business offers and sort them into different groups based on the type of transaction (B2B, B2C, B2G, RCM), the type of document (standard tax invoice, commercial invoice, CN, DN, purchase order), the applicable tax codes, rates, and other factors. Then, make sure that the right e-invoice document is created for each transaction type and for each tax rate.

Make sure that every e-invoice is created in the correct PINT-AE format by testing it with various types of transactions and situations, such as normal transactions, discounted transactions, transactions involving more than one currency, continuous supply, exports, and so on. This will help you make sure that all of your e-invoices meet the FTA’s e-invoicing requirements.

To make sure the system meets the compliance standards, you should also do things like a compliance check, integration testing, current performance review, security measures, and so on.

Step 4: Pick the way you want to integrate the systems.

Integration of ERP, UAE portal, e-invoicing system, PEPPOL entry points, and other things is necessary to make sure that the whole e-invoice process is automatic. Integration of the whole system can be done in a number of ways, including through API connection, SFTP, DB SSIS, and others.

You can choose API for real-time changes and transfers, SFTP for planned and safe transfers, DB for shared data centrally, or SSIS for complicated workflows that combine data from many sources.

Businesses can look at their infrastructure and security policies and then choose the best connection method for their needs, making sure that their e-invoicing process is FTA-compliant. To make sure that your ERP systems, like finance, buying, or sales, can easily talk to the e-invoicing platform, look for plug-and-play interfaces or customized software.

Step 5: Pick an FTA-compliant service provider (ASP)

The UAE’s e-invoicing will be built on the five-corner PEPPOL plan. Under the UAE’s PEPPOL law, service companies will be approved to offer e-invoicing services. Businesses must choose an ASP that has been approved by the UAE government and check to see how knowledgeable and experienced they are in e-invoicing and other indirect tax compliance services around the world.

Also, look at the most important features they offer to make sure the UAE digital e-invoicing system fits the needs of both the company and the UAE government. It is important to have a single source of truth, which means a tool that meets all the needs of automating and following indirect tax rules. 

When looking for a system, it’s also important to make sure it has real-time validation, built-in compliance checks, the ability to choose between cloud-based and on-premises data environments, the ability to send e-invoices and other documents without any problems, and the ability to integrate with the UAE’s official reporting portal.

Step 6: Begin setting up the production area

After weighing the pros and cons of each with your business’s needs, such as scale, control, cost, etc., you can choose between on-premises, private cloud, and public cloud usage. Then, set up the infrastructure for the real production.

Make sure that the system architecture, which includes computers, networks, integration, and other parts, works well with e-invoicing design and is ready to be put into use.

Step 7: Add e-invoicing to your accounting or ERP software

It’s important for the business’s ERP and accounting software to work with the e-invoicing system so that e-invoices can be created in the familiar system and easily sent between ERP, UAE authorities, and authorized access points. This way, the business can get real-time reporting and updates on the status of e-invoices with few changes to the way ERP and e-invoicing work now.

An ideal e-invoicing system should be easy to connect using any method, like API, SFTP, DB SSIS, and more. It should also be scalable and flexible enough to meet the needs of both present and future businesses, and it should make sure that all compliance and validation checks are done.

Step 8: Put in place measures for security and data storage

The most important thing that any program should have is security features. All private data should be protected and kept safe to avoid problems like data leaks, access, data hacking, fraud, mistakes, and so on.

To avoid losing money and a good image, payment data must be properly protected and kept safe, both while it’s being sent and while it’s being stored. Only allowed people should be able to access this data.

To make sure the e-invoices are real and safe, they need to be time-stamped and verified.

Other safety measures should be put in place, like two-factor authentication, passwords, data encryption, audit trails to keep track of actions related to invoices, role-based access management, firewalls, and so on. The ASP must also follow the security steps and licenses that the UAE government requires.

Step 9: Teach your team how to follow the rules for e-invoicing

Opposition to change is a problem that many businesses face when they try to improve and change their systems and processes.

Businesses in the UAE will have to comply with e-invoicing rules in the coming years. As a result, they need to start teaching their finance, sales, and IT teams about how to adopt e-invoicing in the UAE.

To stay on the right side of the law, hold workshops, training sessions, and quality assurance (QA) meetings to help them make self-learning lessons, modules, and other materials. This will help them stay informed about new rules, regulations, and application dates.

Also, make sure that each team knows how to use the new system for scheduling and e-invoicing. Make sure the e-invoicing implementation uae meets legal standards by running demos and test activities before going live.

Step 10: Go live and keep an eye on performance

Once you’ve found the right e-invoicing system and integrated it with a business ERP system, it’s time to go live with e-invoicing and process to make sure the solution meets the needs of both the business and the FTA.

Performance should also be checked on a regular basis to make sure there are no mistakes or strange things happening.

Finally, the systems should be changed regularly to make sure they meet the needs of growing businesses and new government rules.