UAE e-invoicing: deadlines, who it applies to and what to do
Updated · By the Draw. team, ACCA-qualified
Short answer
E-invoicing in the UAE becomes mandatory in phases. A business with revenue of AED 50 million or more must appoint an Accredited Service Provider by 30 October 2026 and go live by 1 January 2027. A business with revenue below AED 50 million must appoint one by 31 March 2027 and go live by 1 July 2027. Government entities follow by 1 October 2027. The rules are set by Ministerial Decisions No. 243 and No. 244 of 2025, as amended in 2026, and late implementation is penalised at AED 5,000 for each month or part of a month.
The timeline
| Who | Appoint an Accredited Service Provider by | Go live by |
|---|---|---|
| Revenue of AED 50 million or more | 30 October 2026 | 1 January 2027 |
| Revenue below AED 50 million | 31 March 2027 | 1 July 2027 |
| Government entities | 31 March 2027 | 1 October 2027 |
These dates are set by Article 5 of Ministerial Decision No. 244 of 2025. The appointment date for the largest businesses was moved from 31 July 2026 to 30 October 2026 by Ministerial Decision No. 66 of 2026.
A pilot with a working group of taxpayers began on 1 July 2026, and since that date any business may adopt the system voluntarily (Articles 3 and 4 of Ministerial Decision No. 244 of 2025).
How revenue is measured
Revenue means the gross income earned in the most recent accounting period, based on financial statements prepared under UAE law. Where there are no such statements, other documentation acceptable to the Federal Tax Authority is used (Article 1 of Ministerial Decision No. 244 of 2025).
Who and what is in scope
The system applies to any person conducting business in the UAE, for every business transaction, unless the person or the transaction is excluded (Article 3 of Ministerial Decision No. 243 of 2025). It is not limited to VAT-registered businesses. The Minister may issue a separate decision naming excluded persons.
The excluded transactions, as amended from 1 October 2026, are:
- Transactions by government entities acting in a sovereign capacity that do not compete with the private sector.
- International passenger flights where an electronic ticket is issued, and airline services ancillary to them where an electronic miscellaneous document is issued.
- International air freight where an airway bill is issued, for 24 months from when the system takes effect.
- Financial services that are exempt or zero-rated under Article 42 of the VAT Executive Regulation.
- Transactions between members of the same VAT tax group, for 24 months from 1 January 2027.
- Any other transaction the Minister determines.
Source: Article 4 of Ministerial Decision No. 243 of 2025, as replaced by Ministerial Decision No. 197 of 2026.
What changes in day-to-day invoicing
- Invoices and credit notes are issued and transmitted through an Accredited Service Provider, not only emailed as a PDF.
- Each invoice and credit note must contain all the data fields the Ministry of Finance prescribes (Article 7 of Ministerial Decision No. 243 of 2025).
- A VAT-registered business keeps the VAT deadline: 14 days from the date of supply. Others in scope have 14 business days from the date of the transaction (Article 6 of Ministerial Decision No. 243 of 2025, as amended).
- Simplified tax invoices end. Once a business issues electronic invoices, the simplified-invoice rules in Article 59 of the VAT Executive Regulation no longer apply (Article 59(16)), and the credit-note rules change in the same way (Article 60(8)).
- Invoices, credit notes and their data are kept for the period set by the Tax Procedures Law and produced to the Federal Tax Authority on request. The earlier requirement to store them inside the UAE was removed on 1 October 2026.
Penalties
Cabinet Decision No. 106 of 2025 sets these administrative penalties:
| Violation | Penalty |
|---|---|
| Not implementing the system, including not appointing an Accredited Service Provider on time | AED 5,000 for each month or part of a month of delay |
| Not issuing and transmitting an electronic invoice on time | AED 100 per invoice, up to AED 5,000 per calendar month |
| Not issuing and transmitting an electronic credit note on time | AED 100 per credit note, up to AED 5,000 per calendar month |
| Not telling the Accredited Service Provider about changes to registered data on time | AED 1,000 for each day of delay or part of a day |
What to do now if your revenue is below AED 50 million
- Confirm your revenue for the most recent accounting period, so you know which phase applies.
- Make sure your invoices are already full tax invoices with every required particular. That is the format e-invoicing builds on.
- Choose and appoint an Accredited Service Provider before 31 March 2027.
- Test issuing and transmitting invoices and credit notes before 1 July 2027.
Common questions
When does e-invoicing become mandatory for small businesses in the UAE?
On 1 July 2027 for businesses with revenue below AED 50 million, which must appoint an Accredited Service Provider by 31 March 2027 (Ministerial Decision No. 244 of 2025).
Does e-invoicing apply if I am not VAT-registered?
The system applies to any person conducting business in the UAE unless the person or transaction is excluded (Article 3 of Ministerial Decision No. 243 of 2025). VAT registration is not the test.
What is an Accredited Service Provider?
A service provider accredited to provide electronic invoicing services in the UAE. Businesses issue and transmit their electronic invoices and credit notes through one.
What is the penalty for missing the e-invoicing deadline?
AED 5,000 for each month or part of a month of delay in implementing the system, including appointing an Accredited Service Provider late (Cabinet Decision No. 106 of 2025).
Can I still issue simplified tax invoices after e-invoicing starts?
No. Article 59(16) of the VAT Executive Regulation switches off the simplified-invoice rules for invoices issued as electronic invoices.
Sources
- Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System — Ministry of Finance
- Ministerial Decision No. 197 of 2026 amending Ministerial Decision No. 243 of 2025 — Ministry of Finance
- Ministerial Decision No. 244 of 2025 on the Implementation of the Electronic Invoicing System — Ministry of Finance
- Ministerial Decision No. 66 of 2026 amending Ministerial Decision No. 244 of 2025 — Ministry of Finance
- Cabinet Decision No. 106 of 2025 on e-invoicing violations and penalties — Ministry of Finance
- Cabinet Decision No. 52 of 2017 (VAT Executive Regulation), consolidated with amendments — Ministry of Finance
This guide explains UAE rules as published by the Ministry of Finance and the Federal Tax Authority. It is not tax advice; the legislation governs in any conflict.
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