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Dahhan Business Services
Regulatory Advisory
Important UAE E-Invoicing Compliance Update
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Dear Valued Client,
We would like to inform you of an important regulatory update introduced by the UAE Ministry of Finance under Ministerial Decision No. 243 of 2025 regarding mandatory UAE E-Invoicing.
The new E-Invoicing framework requires businesses to exchange invoices between suppliers and buyers in a structured electronic format through an Approved Accredited Service Provider (ASP). This allows invoices to be automatically transmitted, validated, and submitted in real time to the Federal Tax Authority (FTA).
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What’s Changing?
Under the current process, suppliers usually generate invoices through their accounting systems and send them directly to customers via printed copies, PDF, or email.
With the implementation of E-Invoicing:
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Invoices must first be transmitted through the supplier’s ASP for validation. |
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Once validated, the invoice will be forwarded to the buyer’s ASP for further verification. |
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After successful validation, the buyer’s ASP will forward the invoice to the buyer. |
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Both ASPs will simultaneously report the transaction to the FTA. |
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The same process will also apply to supplier invoices and accounts payable transactions. |
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Key Deadlines
The UAE Ministry of Finance has announced a phased implementation under Ministerial Decision No. 244 of 2025:
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Revenue < AED 50 Million
(Under the Ministerial Resolution No. 66 of 2026)
ASP Appointment Deadline: 30 October 2026
Implementation Deadline: 1 January 2027
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Revenue < AED 50 Million
(Under the Ministerial Decision No. 244 of 2025)
ASP Appointment Deadline: 31 March 2027
Implementation Deadline: 1 July 2027
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Government Entities
(Under the Ministerial Decision No. 244 of 2025)
ASP Appointment Deadline: 31 March 2027
Implementation Deadline: 1 October 2027
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Do Your Business Subject to E-Invoicing?
The regulation applies to all persons conducting business in the UAE, except for certain exempt transactions, including:
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Government entities acting in sovereign capacity |
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International passenger air transport |
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Certain air cargo services (Temporary Exclusion) |
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VAT-exempted and zero-rated financial services |
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B2C and G2C transactions |
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Non-Compliance Penalties
Failure to comply may result in penalties under Cabinet Decision No. 106 of 2025, ranging from AED 100 to AED 5,000 depending on the type and frequency of violations.
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Are All Transactions Covered?
No. Under the current UAE E-Invoicing framework, Business-to-Consumer (B2C) and Government-to-Consumer (G2C) transactions are currently excluded from the E-Invoicing system. Businesses exclusively engaged in these transactions are also excluded, unless otherwise determined by the Minister in the future.
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How to Get Started with E-Invoicing
To ensure readiness, businesses are advised to:
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Assess the impact on existing invoicing systems |
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Conduct system integration and gap analysis |
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Select and onboard an approved ASP |
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Test invoice sending and receiving processes |
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Go live and monitor ongoing compliance updates |
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Ministry of Finance Approved ASP Providers
Stay tuned for official updates and announcements regarding UAE E-Invoicing implementation timelines, compliance requirements, and future regulatory developments.
Best Regards,
Dahhan Business Services
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