UAE Ministry of Finance Announces New E-Invoicing Regulations

The UAE Ministry of Finance has issued two new ministerial decisions outlining the framework for the country’s Electronic Invoicing (E-Invoicing) System. These decisions mark a significant step towards digital transformation and compliance in financial reporting.

Key Updates from the Ministry of Finance

• Ministerial Decision No. 243 of 2025 defines the scope, exclusions, and governing rules for the operation of the E-Invoicing System.

• Ministerial Decision No. 244 of 2025 sets out the phased implementation plan for both mandatory and voluntary adoption of e-invoicing, along with the appointment of Accredited Service Providers (ASPs).

• A preliminary list of pre-approved e-invoicing service providers has also been released by the Ministry.

Exclusions from the System

Certain transactions are excluded from mandatory e-invoicing, including:

• Sovereign activities by government entities (not competing with the private sector)

• International passenger transport and related airline services

• International goods transport by airlines (with Airway Bill) – excluded for 24 months

• Exempt or zero-rated financial services

• B2C transactions (currently excluded)

• Any other transactions notified by the Minister

Critical Implementation Timeline

The rollout will take place in phases:

• Pilot Phase: Starting July 1, 2026, a selected group of businesses will participate by invitation.

• Phase 1 (Large Businesses): From January 1, 2027, companies with annual revenue of AED 50 million or more must comply with mandatory e-invoicing. Accredited Service Providers must be appointed by July 31, 2026.

• Phase 2 (Other Businesses): Beginning July 1, 2027, businesses with annual revenue below AED 50 million must also adopt e-invoicing, with ASP appointments to be finalized by March 31, 2027.

• Government Entities: Effective October 1, 2027, all government entities are required to implement the system, with ASP appointments completed by March 31, 2027.

Implementation Roadmap for Businesses

To ensure a seamless transition, businesses are advised to:

• Know your deadlines: Each phase has a clear cut-off for ASP appointment before rollout.

• Check your revenue band: Determine which phase applies to your business.

• Stay informed: Monitor updates and upcoming lists of accredited ASPs.

• Prepare early: Involve IT, finance, and compliance teams to avoid last-minute challenges.

Action Point: Secure your ASP, align your teams, and stay ahead of the deadlines to ensure full compliance with the UAE’s e-invoicing requirements.