Mandatory accounting in approved software in the UAE: EmaraTax change
From July 1, 2027, mandatory accounting in approved software for VAT companies in the UAE.
In the previous article, we discussed the topic of e-invoices, which will become mandatory in the United Arab Emirates (UAE). The Federal Tax Authority (FTA) is preparing significant changes in the way accounting is managed in this regard.
Mandatory Accounting in Approved Software: A Major Change is Approaching for UAE Companies
The Federal Tax Authority (FTA) is moving towards requiring companies registered for VAT to manage their accounting in approved software connected to the EmaraTax system.
The goal is greater automation, more accurate data, and less manual reporting. For companies, this means a new standard in how they will manage accounting and invoicing in the future.
What is EmaraTax and Why the System is Changing
EmaraTax is the official tax platform of the FTA, through which VAT registration, submissions, and payments are currently handled. The next step is to connect it with approved accounting and invoicing systems, so selected data is transferred electronically, via API, directly from company software.
In practice, this means a shift from manual records to structured data and systemic control.
When is the Change Coming
The year 2026 is planned as a pilot phase, during which the new setup can be tested.
From July 1, 2027, the use of approved software connected to EmaraTax is expected to become mandatory for all VAT-registered entities. Solutions from Accredited Service Providers (ASP), technical integration via API, and structured formats like UBL/XML are anticipated to be utilized.
What This Means for Companies
This change will affect the daily operations of accounting. In the future, it will no longer be enough to maintain records only in spreadsheets or isolated systems.
Emphasis will be on:
consistent and demonstrable accounting data,
preparedness for checks by the FTA,
system compatibility with EmaraTax requirements,
properly set processes for VAT.
How to Prepare
The most sensible step is to review how your current accounting and invoicing function and to verify whether your current solution makes sense for the future.
The pilot phase in 2026 is the ideal time for companies to adjust their settings without pressure and prepare for the mandatory regime in 2027.
How We Can Help
At Exitence, we help companies in the UAE to set up accounting and compliance so that they are sustainable in the long term and comply with current and upcoming regulations.
If you want to know how the upcoming change affects your company, we are happy to review your setup and discuss possible next steps with you.
👉 Corporate Consulting and Accounting
❓ Frequently Asked Questions
Who is the change relevant to?
Primarily companies registered for VAT in the UAE.
What does approved software (ASP) mean?
These are solutions that meet the technical requirements of the FTA for integration with EmaraTax.
Why are API and UBL/XML mentioned?
These are technical standards that enable the automated transfer and processing of accounting data.
Is the year 2026 mandatory?
No. It is a pilot phase. The mandatory regime is expected from July 1, 2027.
Establishing a company in the United Arab Emirates is now accessible even for individuals from Slovakia or the Czech Republic. Whether you want to expand, optimize taxes, or simply start a business in a dynamic region, the UAE offers excellent conditions.
If you are dealing with accounting or VAT in the UAE and want to prepare for upcoming changes, we would be happy to discuss your situation during an initial consultation.
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