The UAE's New E‑Invoicing System: A Guide For Importers And Exporters

The United Arab Emirates (UAE) is set to introduce a remarkable reform in the way businesses issue and manage invoices. Beginning in July 2026, the country will implement a new electronic invoicing (e‑invoicing) system, which will be rolled out in phases. This system will apply to all business-to-business (B2B) and business-to-government (B2G) transactions, including those involving importers and exporters.

The framework for this initiative is outlined in Ministerial Decision No. 64 of 2025, issued by the Ministry of Finance, which sets out the eligibility criteria and accreditation process for service providers participating in the e‑invoicing system. This article outlines the key components of the UAE's e‑invoicing system and highlights what importers and exporters should know to prepare and ensure compliance.

Understanding the UAE e‑Invoicing System

The UAE's e‑invoicing system is built on a secure digital infrastructure that enables the electronic exchange of invoices between suppliers (such as exporters) and buyers (such as importers) through UAE-accredited Service Providers (ASPs). Each invoice is not only delivered to the buyer but also automatically reported to the Federal Tax Authority (FTA) for compliance and record-keeping.

Although the official list of accredited ASPs is yet to be announced, Ministerial Decision No. 64 of 2025 outlines the eligibility criteria for ASP accreditation. According to the decision:

ASPs must be authorized by OpenPeppol, and
They must be technically capable of accessing and operating within the Peppol Interoperability Framework.

The system is based on the international Peppol Interoperability Framework, and UAE-based exporters must ensure all e‑invoices are compliant and reported to the Federal Tax Authority, regardless of the buyer's location.

For context, OpenPeppol is an international non-profit organization established in Belgium, responsible for developing and managing the Peppol network and ensuring interoperability between different service providers and platforms globally.

The UAE has formally adopted the Peppol Interoperability Framework as the foundation for its e‑invoicing system. This framework sets the technical and operational standards for exchanging electronic documents (such as e-invoices) across systems and borders. Under this framework, e‑invoicing services include the sending, receiving, and exchanging of:

Electronic Invoices,
Electronic Credit Notes, and
Any related invoicing documents.

Implications for UAE Importers

The UAE e‑invoicing system does not impose its standards on foreign vendors and suppliers. Invoices received from abroad, even from Peppol-compliant jurisdictions, are not required to be reported through the UAE e‑Invoicing network. Therefore, UAE importers are not obligated to ensure that foreign suppliers use the UAE's e‑invoicing standards, and there are no additional reporting requirements for such transactions.

Implications for UAE Exporters

When exporting goods out of the UAE, if the foreign buyer is registered on the Peppol network, the UAE exporter must send the invoice using the buyer's electronic address (known as the Peppol endpoint).

However, if the foreign buyer is not registered on the Peppol network, the UAE exporter must use a dummy endpoint. In this case, the invoice will still be reported to the FTA in the UAE but will not be delivered via the Peppol network. The local exporter may then send the invoice to the buyer through traditional channels, such as email or courier service.

UAE exporters must ensure that all e-invoices generated for exports are compliant with the UAE PINT (Peppol International) framework and are reported to the FTA through their Accredited Service Provider, regardless of the buyer's jurisdiction.

Implications on Overseas Importers and Exporters

As of the current guidance provided by the UAE Ministry of Finance and Ministerial Decision No. 64 of 2025, overseas importers and exporters (non-resident businesses) are not required to register with a UAE-accredited Service Provider (ASP) unless they are VAT-registered in the UAE.

The UAE's e‑Invoicing system will be introduced in phases, with businesses onboarded based on specific eligibility criteria. A testing period and a grace period will be provided to help businesses address any initial technical or operational issues. During the transition, companies may continue to use both traditional and electronic invoices.

The below schedule outlines entities entitled to register in the UAE e‑Invoicing system:

Entity Type	UAE VAT Registered	E-Invoicing Registration Required?	Notes
UAE-based Importer	Yes	Not required	Not required to report foreign invoices through the e‑Invoicing system.
UAE-based Exporter	Yes	Required	Must register with a UAE-accredited ASP and report all export e‑invoices to the FTA.
Foreign Supplier to UAE (Exporter)	No	Not required	Not subject to UAE e‑invoicing requirements, even if from a Peppol-compliant country.

However, once e‑invoicing becomes mandatory for a business, all in-scope transactions must be processed exclusively through the e‑invoicing network. Failure to issue a compliant invoice with the new e‑Invoicing system when making a taxable supply may result in a penalty of AED 2,500 per detected case.

The UAE's new e‑invoicing system, in conclusion, represents a major step forward in digitizing tax compliance and streamlining cross-border trade. Importers and exporters must familiarize themselves with the system's requirements, engage with Accredited Service Providers, and ensure their internal processes and systems are ready for integration. By learning how the new e-invoicing system works, businesses in the UAE can stay compliant, avoid disruptions, and benefit from the time and cost savings of using electronic invoices.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.