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UAE to implement e-invoicing and e-reporting

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

In a move towards digital transformation, the UAE Ministry of Finance has announced a significant development in e-invoicing and e-reporting regulations. The Cabinet Decision No. 106 of 2025, issued on November 26, introduces new legal definitions of e-invoices and associated penalties for the upcoming mandate in 2027. Additionally, the Ministry has released its initial list of pre-approved e-invoicing Accredited Service Providers on November 6, 2025.

The Ministry had laid the foundation for this initiative by publishing the e-invoicing Framework on September 29, 2025. Apart from e-invoicing requirements, the mandate also encompasses the submission of e-reports to the UAE Federal Tax Authority shortly after the issuance of e-invoices.

Central to this endeavor is the implementation of the world's sole tax engine and reporting application, designed to reconcile UAE e-invoices seamlessly with VAT returns. This advanced system aims to streamline tax compliance processes and enhance reporting accuracy for businesses operating in the UAE.

The rollout schedule for the mandate is as follows:

  • July 2026: Voluntary pilot phase
  • January 2027: Mandatory for taxpayers with turnovers exceeding AED 50 million
  • July 2027: Mandated for taxpayers with turnovers below AED 50 million
  • October 2027: Implementation for Business-to-Government transactions

The Ministry of Finance will soon release the Accredited Service Providers list, and businesses subject to the mandate will need to appoint their chosen ASP at least six months before the stipulated go-live dates. This phased approach aims to facilitate a smooth transition to the new e-invoicing and e-reporting framework, ensuring compliance and efficiency across the board.

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
27 November 2025
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.