UAE – E-Invoicing Rollout for VAT Registered Taxable Persons 

The United Arab Emirates (UAE) Federal Tax Authority is preparing for the gradual rollout of the e-invoicing system. As previously stated, the initial phase will be technically a pilot. The pilot phase will review the quality of the developed and implemented regime and identify any gaps that need to be corrected before moving into the first mandatory phase. 

The pilot phase of the e-invoicing regime starts on July 1, 2026, and will affect only previously selected taxpayers. During this phase, the selected taxpayers had no mandatory deadline to appoint an Accredited Service Provider (ASP). An ASP is also required at each stage for each group of taxable persons. 

After the pilot phase, where FTA will review the operability of the e-invoicing regime, the three-part gradual implementation will begin.

 E-Invoicing implementation phases: 

The shift from paper-based to structured digital invoicing and reporting reflects the UAE tax agenda: moving from traditional to digital channels. Tax authorities’ monitoring and auditing powers will undoubtedly expand with new mechanisms in place. 

The new policy will undoubtedly improve efficiency, strengthen transparency, and drive tax compliance. The non-compliant taxable persons should be aware of the severe monetary penalty regime deriving from Cabinet Resolution No.106/2025. 

The fine for late appointment of the accredited service provider is Dh 5,000 per month; the fine for not issuing an e-invoice in accordance with the requirements is Dh 100 per invoice. 

Are you a VAT-registered UAE business ready for the mandatory shift to e-invoicing and digital reporting?