When does e-invoicing become mandatory in the UAE?

Businesses with annual revenue of AED 50 million or more go live on 1 January 2027. All other businesses go live on 1 July 2027. Government entities follow from 1 October 2027. Voluntary adoption has been possible since 1 July 2026.

What is the deadline to appoint an Accredited Service Provider (ASP)?

Businesses with revenue of AED 50 million or more must appoint an ASP by 30 October 2026 (extended from 31 July 2026). Businesses below AED 50 million, and government entities, must appoint one by 31 March 2027.

Does UAE e-invoicing apply to B2C sales?

No, not for now. The mandate covers business-to-business and business-to-government transactions; B2C transactions are excluded until further notice.

What are the penalties for not complying with UAE e-invoicing?

Under Cabinet Decision No. 106 of 2025: AED 5,000 per month for failing to implement the system or appoint an ASP on time; AED 100 per e-invoice or e-credit note not issued or transmitted on time, capped at AED 5,000 per month; and AED 1,000 per day for late notification of a system failure or of changes to registered data.

Is a PDF invoice still valid after e-invoicing starts?

For transactions in scope, no. Invoices must be issued as structured electronic data (PINT AE format) and exchanged through accredited service providers on the Peppol network, which also report the data to the FTA.

E-invoicing · first go-live 1 January 2027

UAE e-invoicing: deadlines and how to prepare

By Alena Radkova, Founder of RAS for Tax Consultant · Updated 11 October 2026

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In short

The UAE is replacing PDF and paper invoices between businesses with structured electronic invoices, exchanged through Accredited Service Providers (ASPs) and reported to the FTA.
Revenue AED 50 million+: appoint an ASP by 30 October 2026, go live 1 January 2027.
Everyone else: appoint an ASP by 31 March 2027, go live 1 July 2027.
Penalties start at AED 5,000 per month for not being ready on time.

The timeline

Who	Appoint an ASP by	E-invoicing mandatory from
Any business (voluntary / pilot)	—	Possible since 1 July 2026
Phase 1: annual revenue AED 50 million or more	30 October 2026	1 January 2027
Phase 2: annual revenue below AED 50 million	31 March 2027	1 July 2027
Government entities	31 March 2027	1 October 2027

Phase 1 businesses: the ASP deadline was extended in 2026 from 31 July to 30 October 2026, but the 1 January 2027 go-live date did not move. If your revenue is AED 50 million or more and you have not signed with an ASP yet, act now.

What is in scope

Included: business-to-business (B2B) and business-to-government (B2G) transactions, including tax invoices and tax credit notes.
Excluded for now: business-to-consumer (B2C) sales, until further notice.
Other exclusions: certain government transactions in a sovereign capacity, international passenger air transport with electronic tickets, certain exempt or zero-rated financial services, and (temporarily) international transport under airway bills.

How it works

The UAE uses a “5-corner” model on the international Peppol network:

You (the supplier) create the invoice in your accounting or ERP system.
Your ASP converts and validates it in the UAE format (PINT AE, a structured XML standard) and sends it.
The buyer’s ASP receives it.
The buyer receives it in their system.
Invoice data is reported to the FTA in near real time.

For transactions in scope, a PDF or paper invoice will no longer be enough on its own: the structured e-invoice is what counts.

Penalties

Violation	Penalty (Cabinet Decision No. 106 of 2025)
Not implementing e-invoicing or not appointing an ASP on time	AED 5,000 for each month or part of a month
E-invoice or e-credit note not issued or transmitted on time	AED 100 per document, up to AED 5,000 per month
Late notification to the FTA of a system failure	AED 1,000 per day
Not informing the ASP of changes to registered data	AED 1,000 per day

Your readiness plan

Check your phase. Look at annual revenue at the level of each legal entity: AED 50 million or more means Phase 1.
Check your accounting software. Ask whether your system (for example Zoho Books or your ERP) connects to an accredited ASP, and what it costs.
Choose and appoint an ASP from the Ministry of Finance’s list of accredited providers, before your deadline.
Clean your master data: customer and supplier TRNs, legal names, addresses, item descriptions and VAT categories. Wrong data is the main reason e-invoices get rejected.
Map your invoice fields to PINT AE and test sending and receiving invoices with your ASP.
Update processes: credit notes, corrections, and what to do if the system goes down (the FTA must be notified on time).
Train your team and run a pilot month before the go-live date.

How RAS for Tax Consultant can help

Phase assessment for each of your companies
Help choosing an ASP and checking your accounting software is ready
Cleaning up customer and supplier data (TRNs, addresses, VAT codes)
Reviewing VAT treatment on invoice templates before go-live
Ongoing VAT returns and FTA compliance after e-invoicing starts

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This page is general information based on Ministerial Decisions No. 243 and 244 of 2025, their 2026 amendments and Cabinet Decision No. 106 of 2025, as understood on 11 October 2026. Dates and requirements may change. It is not tax advice for your specific situation; always check the latest publications of the Ministry of Finance and the Federal Tax Authority.