E- Invoicing

A Complete Guide to Compliance

The UAE Ministry of Finance has officially launched the UAE e-Invoicing Portal as part of its broader efforts to modernize tax systems.

With a phased rollout set to begin in July 2026, businesses must be prepared to comply with the new e-invoicing regulations to avoid penalties.

Below, we summarize key details from the UAE’s new e-invoicing laws, the rollout process, and what businesses need to know to stay ahead of the changes.

Key Highlights

  • e-Invoicing Portal: The UAE Ministry of Finance launched the official portal on October 24, 2024, offering valuable information on the new e-invoicing system, including a FAQ section and details about the UAE e-Invoicing Programme.
  • Legislation Updates: Federal Decree-Laws No. 16 and No. 17 of 2024 amend provisions of the VAT Law and Tax Procedures Law to include e-invoicing requirements.
  • Timeline for Implementation: Phase 1 of e-invoicing will go live in July 2026. Businesses must begin preparing by reviewing the information available on the portal and understanding the new technical requirements.
  • Mandatory Compliance: E-invoicing will apply to all businesses, and businesses must ensure compliance with the new VAT reporting requirements.

What Does This Mean for Your Business?

The introduction of e-invoicing is a significant step in the UAE’s ongoing digital transformation and efforts to combat tax fraud. By moving to a fully digital invoicing system, the UAE aims to enhance tax collection efficiency and improve transparency in the business sector.

Businesses must comply with the following steps:

Adopt the New System

E-invoices will need to be transmitted electronically between suppliers, buyers, and the Federal Tax Authority (FTA) through a PEPPOL network. This will require working with an Accredited Service Provider (ASP).

Ensure Data Accuracy

E-invoices must adhere to the new data requirements outlined in the technical data dictionary. ASPs will validate invoices before submission to the FTA.

Phased Rollout

Businesses will be notified in advance before specific stages of the system go live. The pilot phase will allow businesses to test integrations before full implementation.

Legal Updates

The new laws expand definitions of tax documents to include electronic formats, making e-invoicing mandatory for all VAT-related
 transactions.

Steps to Prepare

  • Review the e-Invoicing Portal: Familiarize yourself with the system’s guidelines, FAQs, and other key information
  • Update Your Invoicing Technology: Ensure that your invoicing software complies with the new requirements.
  • Prepare Your Data: Clean and standardize your invoicing data to avoid errors during validation.
  • Stay Informed: Keep up with updates from the Ministry of Finance regarding the e-invoicing technical specifications and ASP accreditation.

How Level Can Help Your Business with e-Invoicing in UAE

Level is here to help your business navigate the e-invoicing landscape and ensure full compliance with the UAE’s Federal Tax Authority (FTA) requirements. We’ve partnered with a leading e-invoicing solution provider to deliver a seamless, Peppol-ready system for your business.

Here’s how Level can assist:

  • Integration with the FTA Portal: Level integrates your business system with the FTA’s e-billing system, ensuring that e-invoices are submitted in real-time, using the specified formats like XML or JSON.
  • Peppol-Ready: Level follows the Peppol specifications for data exchange, ensuring compliance with the UAE’s Continuous Transaction Controls (CTC) model.
  • End-to-End E-Invoicing Solution: Level provides a complete solution for issuing, submitting, and receiving e-invoices. We track the status of submitted invoices and send email notifications for each submission.
  • Web-Based Portal: Level offers a user-friendly web-based portal that allows you to manage the entire e-invoicing process from generating invoices to tracking their submission and status.
  • 100% E-Invoicing Compliance: With Level, your business can achieve 100% compliance with the UAE’s e-invoicing regulations.

As the UAE moves towards a fully digital invoicing system, businesses need to act now to ensure compliance with the upcoming e-invoicing requirements. A delay in the implementation and failure to comply could lead to penalties. Stay ahead of the changes by educating your team, updating your invoicing technology, and understanding the new legal frameworks. With proper preparation and expert support from Level, your business can seamlessly transition to this new system, improving efficiency and ensuring full tax compliance.