E-invoicing in the UAE — What Changes, Who it Affects, and How to Prepare

Electronic invoicing (e-invoicing) is among the most significant legislative changes in the United Arab Emirates in recent years. The aim is to make the invoicing process more modern and efficient by connecting it directly with tax authorities and allowing for easier compliance.

The changes are being implemented gradually according to prescribed waves and involve electronic invoices for VAT and other reporting requirements. It is crucial to understand how this system works, who is required to implement it, and what the various phases are to be prepared without stress.

Who does it affect?

E-invoicing affects companies that:

• have a Tax Registration Number (TRN) in the UAE,

• issue invoices to other companies or authorities in the UAE,

• are subject to VAT reporting obligations,

• conduct business transactions reported via electronic invoicing.

This means the obligation is not just for large corporations – it is gradually extending to a broader range of business entities regardless of size.
The UAE is implementing e-invoicing in multiple phases or waves, which determine when and how individual companies must comply:

• 1st wave: companies with turnover above 50 million AED

• 2nd wave: companies with turnover below 50 million AED

• It concerns all VAT registered companies in the UAE

Key Deadlines (for companies < 50 million AED)

• Onboarding to ASP: by March 31, 2027

• Mandatory e-invoices: from July 1, 2027

• Pilot phase (voluntary): from July 1, 2026
  ➝ We recommend using it to test systems and internal processes.

What will be mandatory?

To meet the FTA requirements, it will be necessary to:

• Issue invoices and credit notes in a structured format (e.g., XML/UBL), not just PDF

• Send and receive invoices through an accredited ASP

• Archive e-invoices for at least 5 years in accordance with legislation

How to Prepare? 5 Steps to Compliance

• verify whether your company meets the conditions for compulsory involvement in e-invoicing according to the relevant wave

• check whether your accounting/invoicing system supports the electronic format required for the UAE,

• adjust internal processes so that issued invoices meet new technical and reporting requirements.

1. Timely preparation helps avoid penalties, unnecessary delays in issuing invoices, and complications in the relationship with tax authorities.

Recommended Programs for E-invoicing

Recommended programs for e-invoicing

Our Experience

We have proven Zoho in practice with clients in the UAE. With the connection between invoicing, inventory management, and CRM, the implementation is fast, and preparation for e-invoicing is significantly easier.

❓ Frequently Asked Questions

What does e-invoicing mean in the UAE?
It is a new standard for electronic processing of invoices, allowing automated communication with tax authorities.

Who must switch to e-invoicing?
The obligation is gradually extending to all entities that issue invoices subject to VAT and have a TRN in the UAE.

How do I find out which wave my company is in?
Specific deadlines and requirements are set by UAE authorities based on the type of license and business activities – we can help with that.

Do I need new invoicing software?
That depends on your current system. The goal is to ensure a format and process compatible with UAE requirements.