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UAE Set to Launch B2B Peppol E-Invoicing and E-Reporting: Pilot Phase Begins July 2026, Full Mandate Rolling Out in 2027

UAE Ministry of Finance Unveils E-Invoicing and E-Reporting Mandate with Pilot Program and Phased Implementation

The UAE Ministry of Finance issued an eInvoicing Guide, helping taxpayers prepare for the upcoming 2027 mandate. This clarifies the scope of the system and in-scope transactions—including use cases. There is also a section on penalties. A pilot phase will start in July 2026.

Aside from e-invoicing, the mandate includes separate e-reporting to the UAE Federal Tax Authority within days of e-invoicing.

Key points from the new guide:

  • Intra-group e-invoicing paused until Jan 2029;
  • Non-residents invoicing B2B are in scope;
  • Transaction data may be retained outside the UAE;
  • Detailed data archiving requirements;
  • More guidance on accredited provider selection; and
  • HSN codes remain optional until further review.

The launch timetable is:

  • July 2026: voluntary pilot phase
  • Jan 2027: taxpayers above AED 50m turnover
  • Jul 2027: taxpayers below AED 50m turnover
  • Oct 2027: B2G
  • Jan 2029: Intra-group

The pre-approved Accredited Service Providers list has now been published by the Ministry of Finance with 16 providers. A further round will be added February and March 2026. Waves of mandated businesses should appoint their ASP at least six months prior to go-live.

How Can KGT Support You?

KGT has created an SAP-integrated e-invoicing add-on solution for the UAE, featuring outbound and inbound functionalities to meet tax reporting requirements. This add-on includes a data extractor and a cockpit for generating periodic electronic invoices in the legal format and controls before submission. When SAP DRC launched a UAE's e-invoicing solution as part of its e-document offerings, KGT emerged as a leading consultancy firm for SAP DRC and tax services. Recognized as an SAP DRC partner for UAE's e-invoicing services, KGT is one of SAP's recommended implementation partners for this solution. We provide comprehensive support, including installation, configuration, customization, and training, to help you maximize the long-term value of your SAP DRC investment.

The link provided allows you to download KGT's brochure, which offers a detailed explanation of the legal updates and information on how KGT can assist you in meeting these new requirements on time.

The_United_Arab_Emirates_will_implement_a_B2B_and_B2G_e-invoicing_mandate_in_2026.pdf

If you have any questions, please don't hesitate to contact us.

KGT is a SAP partner for PE services and SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409

 

Country update for UAE
18 February 2026
Stay informed about the latest indirect tax developments in UAE, including regulatory changes, compliance requirements, and indirect tax guidance affecting businesses operating locally and cross-border. This page provides a structured overview of country-specific updates, such as new legislation, reporting obligations, digital tax initiatives, and implementation timelines.
These insights help tax, finance, and compliance professionals anticipate regulatory changes, adjust processes and systems, and maintain compliant operations in UAE.