Key Highlights of Ministerial Decision No. 243 & 244 of 2025 on Electronic Invoicing

New E-Invoicing Timeline: The UAE has announced a mandatory e-invoicing rollout beginning January 1, 2027, with a structured timeline for implementation.
Phased Implementation: A pilot program and voluntary phase will commence in July 2026, followed by mandatory e-invoicing for taxpayers with a turnover of AED 50 million or more in January 2027, and for those below that threshold in July 2027.
B2G Implementation: The timeline also includes a specific phase for Business-to-Government (B2G) transactions set for October 2027, ensuring compliance across various sectors.

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Launch of Electronic Invoicing System: The Ministry of State for Financial Affairs has introduced a new electronic invoicing system, with a pilot program set to begin on July 1, 2026, involving a Taxpayer Working Group to test the system.
Voluntary and Phased Mandatory Implementation: Businesses can voluntarily adopt the system starting July 1, 2026, with mandatory implementation scheduled for January 1, 2027, for those with revenues of AED 50 million or more, and by July 1, 2027, for businesses below that threshold. Government entities are required to implement the system by October 1, 2027.
Exemptions and Compliance Standards: B2C transactions are currently exempt from mandatory implementation, while all participants must adhere to the technical standards established by the Ministry and relevant authorities, aimed at streamlining invoicing processes and enhancing overall compliance.

Establishment of the Electronic Invoicing System: The UAE Ministry of Finance has issued Ministerial Decisions No. 243 and No. 244 of 2025, launching the Electronic Invoicing System with a phased implementation plan. A pilot program for selected taxpayers will begin on July 1, 2026, and businesses can voluntarily adopt the system starting on the same date.
Mandatory Implementation Timeline: Businesses with revenues of AED 50 million or more must appoint an Accredited Service Provider (ASP) by July 31, 2026, and go live by January 1, 2027. For businesses earning less than AED 50 million and government entities, the deadlines are March 31, 2027, for appointing an ASP and July 1, 2027, and October 1, 2027, respectively, for going live.
Exclusions and Impact on B2C Transactions: Certain transactions, including government activities in a sovereign capacity and specific airline services, are excluded from the e-invoicing requirement. B2C transactions are currently exempt from the system, allowing businesses focused on B2C to prepare for future changes. This initiative represents a significant move towards digital transformation and improved tax compliance in the UAE.