The UAE’s Ministry of Finance (MoF) is making significant strides in modernizing its systems with five major projects, all geared towards their 2031 vision and the push for a more digital government. One of these standout initiatives is the “E-Billing System.” Simply put, it’s about creating a high-tech electronic billing system that everyone in the country can use. The main aim is to simplify the process of filing taxes by leveraging technology. The ultimate goal is to make tax procedures more straightforward, ensure better compliance with tax rules, and reduce instances of tax evasion. The plan is to wrap up this ambitious project by July 2025, marking a significant step forward in realizing the UAE’s vision for a more digitally advanced government.
Currently, electronic invoices are not mandatory, but there are plans to enforce their use, taking inspiration from the framework established by the Kingdom of Saudi Arabia (KSA).
The specific details of the upcoming e-invoicing system in the UAE are yet to be disclosed, but the implementation will occur in two phases:
- Phase 1, starting in July 2025, will mandate e-invoicing for cross-border transactions exceeding AED 50,000
- Phase 2, scheduled for July 2026, will extend the mandatory e-invoicing requirement to cover all transactions.
B2B and B2G transactions will be in the scope. Also, the Peppol network might be introduced by MoF.
As the UAE government moves towards making e-invoicing compulsory, businesses should proactively prepare. Manual preparations for this transition consume valuable time that could be better utilized for more productive activities.