What is eInvoice?
An eInvoice is an invoice that has been issued, transmitted and received in a structured data format which allows for its automatic and electronic processing.
eInvoices are Not:
- Unstructured invoice data issued in PDF or Word formats
- Images of invoices such as JPG or TIFF
- Unstructured HTML invoices on a web page or in an email
- OCR (Scanned paper invoices)
- Paper invoices sent, like images, via fax machines
The use of eInvoices requires two key functions (a) The eInvoice needs to be created with the correct structure such as XML or JSON and (b) The eInvoice needs to be transferred from the seller’s system to the buyer’s system.
Timeline: eInvoicing in the UAE
- Q4 2024: Development of the requirements and procedures for Accredited Service Providers (ASP).
- Q2 2025: The government will implement new rules and regulations. Businesses will be notified of the legislative updates.
- Q2 2026: Phase 1 of eInvoicing goes live for B2B and B2G eInvoicing.
UAE eInvoicing Framework
- UAE has selected the Decentralized Continuous Transaction Control and Exchange (DCTCE) / 5 corner model. Which are as below:
Corner 1 – Supplier
Corner 2 – Supplier’s Accredited Service Provider (ASP)
Corner 3 – Buyer’s Accredited Service Provider (ASP)
Corner 4 – Buyer
Corner 5 – MOF & FTA
- Usage of Peppol network to leverage for invoice exchange and interoperability. Peppol International (PINT) as UAE Data Dictionary.
- B2B and B2G mandatory
- Set up of the UAE Peppol Authority Committee
Overview of eInvoicing model in the UAE

- Supplier: Enters the data in their business software and starts the eInvoicing process through the OpenPeppol Accredited Service Provider (ASP).
- Validate and transmit: The sending ASP validates the invoice and transmits it to the buyer ASP through the OpenPeppol directory facility securely.
- Collect, validate, and deliver: The receiving ASP collects the data, validates it, and sends it to the buyer.
- Receive: The customer receives this data in their business software.
- Collect, validate, and store: Both UAE-accredited SPs can report the tax data document to the central platform managed by the FTA. The data will then be validated and processed
Actions to be performed by Taxpayers
- Understand eInvoicing Regulations, Process and Data Requirements.
- Assess: Check your current invoicing process to ensure it is ready for eInvoicing. For instance, once an e-invoice is issued by an ASP, any discrepancies must be corrected using credit notes. In such a scenario, if your business uses manual invoicing, transitioning to the e-Invoicing format may require adjustments and proper resources to maintain an efficient, error-free workflow.
- Choose Accredited Service Provider and Sign Contract (Commercial Impact).
- Start conducting testing for eInvoice creation, validation, and submission along with Accredited Service Provider
- Train: Educate your employees on the latest eInvoicing process for hassle-free implementation.
Source: https://mof.gov.ae/einvoicing & https://www.zoho.com/ae/books/academy/taxes-and-compliance/einvoicing-in-uae
Recent Comments