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The Federal Tax Authority called on October 25 for persons subject to the e-invoicing system whose annual revenues equal or exceed AED50 million to appoint an accredited service provider no later than October 30 and to implement the system by January 1. Businesses with revenues below that threshold must appoint a provider by March 31 2027 and begin using the system on July 1 while government entities follow the same appointment date but implement by October 1. The deadlines form part of Ministerial Decision No. 244 of 2025 as amended by Ministerial Decision No. 66 of 2026 according to repeated statements from both the Ministry of Finance and the Federal Tax Authority.
Ministerial Decision No. 197 of 2026 which took effect on October 1 amended earlier rules by treating transactions between members of the same VAT tax group as excluded for 24 months beginning January 1 2027. The decision also shifted the timeframe for issuing and transmitting electronic invoices or credit notes to 14 business days from the transaction date and removed the former obligation to notify the authority of system failures within two business days. In addition the requirement to store e-invoice data inside the UAE has been dropped the Ministry of Finance indicated in its announcement of the changes.
Business-to-business and business-to-government transactions fall within the scope of the electronic invoicing system while business-to-consumer sales remain outside it until a future ministerial decision sets a start date. The framework replaces paper and PDF invoices with structured data exchanged through an accredited service provider under the five-corner model that has been available on a voluntary and pilot basis since July 1. The Federal Tax Authority has emphasised that early preparation including selection and integration with a provider through the EmaraTax platform will help businesses avoid disruption when the mandates begin.
Administrative penalties for failing to appoint a provider or implement the system on time reach AED5000 for each month or part of a month of delay under Cabinet Decision No. 106 of 2025. Separate fines of AED100 apply for each late electronic invoice or credit note though these are capped at AED5000 per calendar month. The authority has warned that non-compliance will trigger these measures and has encouraged all affected entities to complete necessary procedures well in advance of their respective deadlines.
The phased rollout aligns with the UAE’s broader digital transformation of tax processes and aims to standardise automate and simplify invoicing across the economy. Recent amendments in Ministerial Decision No. 197 of 2026 were designed to provide greater clarity and reduce operational burdens for businesses the Ministry of Finance stated when it released the updated text. Affected companies have been advised to review the full decisions and consult professional advisers to ensure their systems and workflows meet the technical and timing requirements.
Public statements from the Federal Tax Authority on September 29 and October 25 reaffirmed that the January 1 2027 go-live date for larger businesses remains unchanged despite the earlier extension of the provider appointment deadline from July 31 to October 30. The authority noted that more than 700 participants attended a joint session with accredited providers in late September underscoring the level of engagement ahead of the first wave. Smaller businesses and government entities will follow in subsequent phases through the second half of 2027 under the same regulatory framework.
