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E-Invoicing

About

What is E-Invoicing

E-Invoicing (Electronic Invoicing) refers to the system of creating, issuing, transmitting, receiving, and storing invoices in a structured electronic format that allows automatic processing by accounting systems and tax authorities, without manual intervention.

The United Arab Emirates (UAE) is implementing a mandatory e-invoicing system as part of its broader digital transformation strategy. This initiative aims to enhance tax compliance, improve operational efficiency, and align with international best practices.

header_ineinvoieinsode

Scope of the Mandate

- Effective Date: July 1, 2026.
- Applicable Transactions: Business-to-Business (B2B) and Business-to-Government (B2G) transactions.
- Excluded Transactions: Business-to-Consumer (B2C) transactions are currently out of scope but may be included in future phases.

How E-Invoicing Works

Click here to view more details

The primary objectives of E-Invoicing in the UAE is:

Enhance tax compliance and reduce fraud.

Increase operational efficiency for businesses.

Promote transparency in financial transactions.

Align with international best practices in digital taxation.

The UAE will adopt a Decentralized Continuous Transaction Control and Exchange (DCTCE) model, also known as the “5-corner Model”. This model facilitates direct exchange of E-invoices between suppliers and buyers through Accredited Service Providers (ASPs), with real-time reporting to the FTA.
Implementation will take place in phases as outlined below:

E-Invoicing Timeline

Phase Applicability Deadline to Appoint ASP* Deadline to Issue E-Invoices
Phase 1 Businesses with annual revenue more than AED 50 million On or before 31 July 2026 1 January 2027
Phase 2 Businesses with annual revenue less than AED 50 million On or before 31 March 2027 1 July 2027

Key Actions Required

  • Align your current ERP/IT systems with the new E-Invoicing requirements.
  • Appoint an Accredited Service Provider (ASP) before the relevant deadline as referred in above table.
  • Conduct testing and validation of your e-invoicing setup in advance.

How MARS will Support

  • Review of Current Invoicing Process
  • Compliance Requirements Mapping
  • System & Technical Assessment
  • Technical & Functional Due Diligence
  • Vendor Shortlisting & Evaluation
  • Cost-benefit & Commercial Analysis
  • Testing & Validation
  • Go-Live Support
  • Post-Implementation Monitoring

Contact for more details on E-Invoicing

Mr. Abdulkader Bhanpurawala

Partner
M: +971 56 413 3479
E: ak.bhanpurawala@marsgroup.ae

Mr. Mustafa Saifuddin

Partner
M: +971 56 413 3477
E: mustafa.saifuddin@marsgroup.ae

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