UAE e-Invoicing: Two 2025 Ministerial Decisions Set Scope, Duties, and a Phased Timeline

Ministerial Decisions Overview: The UAE Ministry of Finance has issued Ministerial Decisions Nos. 243 and 244 of 2025, establishing the framework for the electronic invoicing system, which mandates structured e-invoices and credit notes to be exchanged through Accredited Service Providers (ASPs) for B2B and B2G transactions.
Implementation Timeline: The rollout includes a pilot program starting on July 1, 2026, voluntary adoption from the same date, and mandatory implementation for large taxpayers by January 1, 2027, followed by smaller taxpayers and government entities in 2027. B2C transactions are currently excluded but may be included later.
Business Compliance Requirements: Businesses must appoint an ASP, issue and transmit e-invoices within 14 days of a transaction, and adhere to the prescribed data formats. The updated VAT Executive Regulations, effective from September 29, 2025, eliminate previous paper invoice shortcuts, requiring strict compliance with the new electronic specifications to mitigate compliance risks.

Source RTC

Phase	Entity Type	ASP Appointment Deadline	Mandatory Implementation
Pilot	Invited working group	—	1 July 2026
Voluntary Go-Live	Any business	—	1 July 2026
Phase 1	Large taxpayers (≥ AED 50M revenue)	31 July 2026	1 January 2027
Phase 2	Other taxpayers (< AED 50M revenue)	31 March 2027	1 July 2027
Government Entities	All in-scope entities	31 March 2027	1 October 2027

Applies to B2B and B2G transactions.
B2C transactions are excluded for now.
Businesses must appoint an Accredited Service Provider (ASP) to issue and receive structured e-invoices.
E-invoices must be submitted to the Federal Tax Authority (FTA) within 14 days of the transaction.

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UAE Finalizes VAT Executive Regulation and Sets Phased Rollout for E-Invoicing

Legal Framework Established: The UAE’s Ministerial Decision No. 243 of 2025 sets the legal foundation for electronic invoicing, outlining obligations, exclusions (e.g., B2C transactions), and the role of Accredited Service Providers (ASPs) in invoice exchange and reporting.
Phased Rollout Plan: Ministerial Decision No. 244 of 2025 introduces a phased implementation schedule, starting with a pilot program on 1 July 2026. Compliance dates vary by taxpayer size, with large taxpayers required to comply by 1 January 2027.
Significant Reform Initiative: These decisions collectively lay the groundwork for a comprehensive e-invoicing system, marking a major step in the UAE’s tax digitalization reform and enhancing the regulatory VAT framework.

Source SNI

The United Arab Emirates (UAE) Ministry of Finance, on 29 September 2025, issued Ministerial Decisions 243 and 244, establishing the framework for e-invoicing applicable to all commercial transactions in the UAE, including those involving nonresidents.
Key exclusions include sovereign government activities, certain international airline services, goods transport (exempt for 24 months), value-added tax (VAT)-exempt or zero-rated financial services, and other transactions designated by the Minister of Finance.
The phased implementation will commence with a pilot program on 1 July 2026, followed by mandatory adoption starting 1 January 2027 for businesses with revenues of AED50m or more, and subsequent deadlines for smaller businesses and government entities.
Businesses in the UAE should adopt measures to comply with the requirements related to the new Ministerial Decisions.

E-Invoicing Roll-Out Timeline: The UAE Ministry of Finance has announced a phased implementation of the e-invoicing obligation, with large companies required to comply by July 31, 2026, followed by smaller businesses and ultimately government entities.
Scope of Implementation: The e-invoicing system is mandatory for all entities conducting business in the UAE for B2B and B2G transactions, with few exceptions; non-compliant businesses may choose to adopt the system voluntarily.
Key Deadlines: The roll-out includes a pilot program starting July 1, 2026, with large businesses required to appoint an accredited service provider (ASP) by July 31, 2026, and implement the system by January 1, 2027; deadlines for smaller businesses and government entities are set for March 31, 2027, and October 1, 2027, respectively.

Source Pagero