UAE E-Invoicing Mandate by 2026: Public Consultation

Public Consultation on E-invoicing Mandate

The UAE government has launched a public consultation on the proposed B2B and B2G e-invoicing mandate. The consultation period is open until 27 February 2025, providing businesses and industry stakeholders the opportunity to offer feedback ahead of a broader implementation slated for 2026.

UAE E-invoicing Strategy

The upcoming e-invoicing mandate is planned to cover both B2B and B2G transactions, representing a bold step in the nation’s transition towards a modern, paperless economy. Central to this initiative is the UAE’s commitment to improving tax collection and reducing instances of tax evasion. The envisioned system is expected to create a balanced playing field for all businesses, enhancing the overall ease of doing business while maximizing federal revenue collection.

A key highlight of the proposal is the adoption of a decentralized CTC model, which leverages the established 5 corners PEPPOL model. PEPPOL, known for its robust interoperability framework, is widely used to facilitate seamless electronic invoicing across different regions. By aligning with the OpenPeppol network, the UAE aims to benefit from a system that ensures efficient, secure, and transparent invoice exchanges between parties.

In this new setup, only UAE-accredited service providers will be authorized to transmit invoice data to a central data platform, which is managed by the Federal Tax Authority. This selective accreditation is designed to safeguard the integrity of the data and streamline compliance across the board.

UAE Key E-invoicing Objectives

The UAE’s e-invoicing drive is underpinned by clear and strategic objectives:

• Modern Digital Economy: Serving as a catalyst for a fully digital and paperless economy, the initiative aligns with global trends in automation and digitalization.
• Enhanced Revenue Collection: By improving the mechanisms of tax collection, the government aims to maximize federal revenue.
• Reduction in Tax Gaps and Evasion: The system is poised to minimize tax evasion and close existing tax gaps, ensuring a fairer and more transparent taxation process.
• Ease of Doing Business: Ultimately, the initiative seeks to level the playing field for businesses, creating a more conducive environment for economic growth and competition.

As the consultation remains open until February 27, 2025, now is the time for businesses, tax professionals, and other stakeholders to engage with the process. For further details on the public consultation process and the technical framework behind the mandate, please visit the official UAE eInvoicing portal: UAE eInvoicing.