E-Invoicing Implementation Updates Released by the UAE Ministry of Finance
- 02.10.2025
- Posted by: Uwe Hohmann
- Categories: Accounting, Dubai
The MoF (Ministry of Finance) has issued Ministerial Decisions No. 243 and No. 244 of 2025, which together establish the legal framework and the rollout plan for the UAE’s new Electronic Invoicing System.
This development represents a transformation in how invoices and credit notes are created, transmitted, and reported, with the broader goal of modernizing tax infrastructure, improving compliance, and enhancing transparency.
The Legal Framework - Decision No. 243 of 2025
Decision 243 sets the foundation for the e-invoicing system. It confirms that most businesses in the UAE will be required to issue invoices and credit notes electronically, while a few activities remain outside the system.
These exclusions include sovereign government activities, certain international passenger and goods transport services, and some financial services. Businesses within the scope must issue invoices in line with VAT time-of-supply rules and transmit them to the FTA (Federal Tax Authority). Records must also be stored in the UAE in accordance with tax law.
The decision requires businesses to work with ASPs (Accredited Service Providers) to ensure proper issuance, validation, and reporting of invoices. It also addresses specific cases such as self-billing, agent arrangements, and credit notes. In situations where technical failures or system outages occur, businesses must notify the authority promptly to remain compliant.
How the UAE Model Works
While Decision 243 explains what is required, Decision 244 sets out when and how the system will be implemented.
The transition begins with a pilot programme on 01.07.2026 involving selected taxpayers.
From the same date, any business will be able to voluntarily adopt the system.
Mandatory implementation will be phased in by business size and type.
Businesses with annual revenue of AED 50 million or more must appoint ASPs by 31.07.2026 and adopt the system from 01.01.2027.
Businesses with revenue below AED 50 million must appoint ASPs by 31.03.2027 and adopt the system from 01.07.2027.
Government entities are also covered, with deadlines set for 31.03.2027 for appointing ASPs and 01.10.2027 for full implementation and compliance.
B2C (Business-to-Consumer) transactions are currently excluded but may be included in the future.
What Businesses Need to Know
Although mandatory adoption is still some time away, businesses should start preparing early. Reviewing current invoicing systems, identifying gaps in processes, and assessing readiness for electronic integration are important first steps. Larger companies, in particular, are encouraged to act quickly to avoid last-minute pressure. Keeping up to date with additional technical guidelines from the Ministry of Finance and the Federal Tax Authority will also be essential.
Comprehensive UAE Business Solutions
As always, TME Services will continue to monitor these developments and provide guidance on compliance requirements. The transition to e-invoicing represents both a regulatory requirement and an opportunity to modernize your business operations.
Our comprehensive services are designed to support you every step of your business journey in the UAE:
- Company Formation: We guide you through all aspects of setting up your company, whether in a free zone or on the mainland, ensuring you choose the best option for your business.
- Visa and Emirates ID Services: We streamline the process of securing visas and Emirates IDs for you and your employees, allowing you to focus on your business operations.
- Accounting: Our team ensures your business stays compliant with local financial regulations, which is crucial for maintaining good standing in Dubai’s business community.
- Tax: We help manage Dubai’s tax environment, ensuring your business remains compliant while optimizing your tax position.
- Business Consulting: Leveraging our deep understanding of Dubai’s market, we provide valuable insights and help you develop effective strategies to succeed.
Visit our services page to learn more about everything we do.
