UAE e-invoicing: what buyers and suppliers need to know

What is changing

Today most UAE businesses send invoices as PDFs by email. Under the national e-invoicing system, invoices between businesses are created as structured data in a set format, exchanged through Accredited Service Providers (ASPs) and reported to the Federal Tax Authority (FTA) as they are sent. The legal basis is Ministerial Decision No. 243 of 2025, which sets the scope, and Ministerial Decision No. 244 of 2025, which sets the timeline. Both were issued on 29 September 2025.

The timeline

The ASP deadline for the largest businesses was originally 31 July 2026. An amendment to Decision No. 244 moved it to 30 October 2026, and the Ministry of Finance said their 1 January 2027 go-live date stays the same.

What is in scope

The mandate covers invoices between businesses in the UAE, and government entities have their own go-live date. The revenue threshold only decides when a business must start, not whether it must. Exclusions are limited: sales to consumers (B2C) are out of scope until further notice, and there are specific exclusions for certain government transactions in a sovereign capacity, certain airline services and some exempt financial services.

How it works

• Structured data, not documents. An e-invoice is data in a defined format, the UAE’s version of the Peppol invoice standard known as PINT AE, not a PDF. PDFs, scans and emailed invoices do not count as e-invoices.
• Through ASPs. The seller and the buyer each connect through an ASP. The seller’s ASP checks the invoice and delivers it to the buyer’s ASP.
• Reported as it is exchanged. Tax data from each invoice goes to the FTA as the invoice moves. The Ministry calls this a five-corner model: the seller, the seller’s ASP, the buyer’s ASP, the buyer, and the FTA.
• Reported, not pre-approved. Invoices do not wait for FTA approval before they reach the buyer.

What buyers should do

Even if you receive more invoices than you send, e-invoicing changes your accounts payable work. Before your go-live date:

1. Appoint an ASP by your deadline. You need one to receive e-invoices, not only to send them.
2. Clean your supplier records. Legal names, TRNs and addresses should match each supplier’s licence and VAT registration.
3. Use purchase order numbers. Ask suppliers to quote your PO number on every invoice, so invoices can be matched to orders automatically.
4. Record what you receive. Matching an invoice to an order and a delivery is what lets you approve it quickly and recover input VAT with confidence.
5. Talk to your main suppliers. Ask which ASP they are using and when they will be ready.

What suppliers should do

1. Find your date. Revenue of AED 50 million or more means 1 January 2027; below that, 1 July 2027.
2. Appoint an ASP and check that your accounting or invoicing system can produce e-invoices in the required format, directly or through the ASP.
3. Collect your customers’ details: legal name, TRN and the identifiers your ASP needs, plus the buyer’s PO number for each order.
4. Test early. The voluntary pilot has been open since 1 July 2026.
5. Tell your buyers when you are ready. Expect the question when you register as a new supplier; see the documents buyers ask for.

Where procurement software fits

Procurement software is not an ASP and does not send e-invoices. Its job comes before the invoice: a clear purchase order for every purchase, a receiving record for every delivery, and supplier records with the right legal names and TRNs. With those in place, an e-invoice arriving through your ASP can be checked against what was ordered and received, instead of chased by email.

In Korrway, purchase orders come from awarded quotes, deliveries are received against the order, and supplier records hold each supplier’s TRN and trade licence details.