The United Arab Emirates is introducing a mandatory electronic invoicing system for B2B and B2G transactions. The framework is based on Peppol and uses a decentralised model in which businesses exchange structured electronic invoices through Accredited Service Providers.

Implementation is taking place in phases. A pilot and voluntary implementation phase began on 1 July 2026, while mandatory implementation starts from 1 January 2027 for businesses with annual revenue of AED 50 million or more. Further businesses and government entities will follow during 2027.

The UAE e-invoicing requirements apply to businesses and government entities in phases. Businesses with annual revenue of AED 50 million or more are the first private-sector group required to implement the system, followed by businesses below this threshold.

The mandate covers applicable B2B and B2G transactions. B2C transactions are currently outside the scope of the UAE Electronic Invoicing System, while certain other transactions and entities may also be excluded under the applicable rules.

Businesses within scope must appoint an Accredited Service Provider and ensure that their systems can generate and exchange structured electronic invoice data in accordance with the UAE requirements.

Businesses with annual revenue of AED 50 million or more must appoint an Accredited Service Provider by 30 October 2026 and implement the Electronic Invoicing System from 1 January 2027. Businesses below this threshold must appoint a provider by 31 March 2027 and implement the system from 1 July 2027.

An e-invoice must contain structured data that can be processed electronically. PDFs, scanned invoices, images, Word documents and invoices sent only by email do not qualify as electronic invoices under the UAE framework.

The UAE Electronic Invoicing System is based on Peppol and uses a decentralised five-corner model. Suppliers and buyers connect through Accredited Service Providers, which facilitate the exchange of structured electronic invoice data between the parties.

The model also enables required invoice data to be reported to the Federal Tax Authority as part of the same electronic process. This additional reporting function distinguishes the UAE model from a traditional Peppol four-corner exchange.

iEDI support for e-invoicing in the United Arab Emirates is coming soon. Our planned support will help businesses connect their existing ERP and business systems to the required e-invoicing infrastructure without replacing the systems they already use.

Talk to us about your UAE e-invoicing requirements and how you can prepare your systems and invoice flows for the upcoming mandate.