Over the past few days, the UAE has reached a significant milestone in the development of its national e-invoicing mandate.&nbsp;
&nbsp;
Below is a summary of the key developments:&nbsp;
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Peppol Authority Specific Requirements (PASR)&nbsp;</li>
</ul>
The <a href="https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Furldefense.com%2Fv3%2F__https%3A%2Fopenpeppol.atlassian.net%2Fwiki%2Fx%2FAYA3r__%3B!!GFN0sa3rsbfR8OLyAw!ZC-QOM5-HMmO473gqH2tCSjdZUSmtp_DhILHGX34CZNeYU85KqkdJBg7dX2NksHq-NOlcSeDTXpa4tt31GBq8SRPZQqAiS5VQeg%24&amp;data=05%7C02%7CQamar.AlHkim%40thomsonreuters.com%7C055eb22f2f6746c0635808dda91b46ba%7C62ccb8646a1a4b5d8e1c397dec1a8258%7C0%7C0%7C638852657071316085%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=TizjxBQzhcIHWxHstDpRlXVW7SA2dtcK8heMXjqP8hI%3D&amp;reserved=0">PASR</a> is a foundational document that outlines the specific rules and technical requirements for Peppol Service Providers operating in the UAE.&nbsp;
&nbsp;
It serves as an umbrella framework, encompassing a suite of documents that explain the standards and expectations for implementing Peppol-based 5-corner model. Key documents under this framework include:&nbsp;
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">PINT AE&nbsp;</li>
</ul>
This is the UAE-specific adaptation of the Peppol International Invoice (PINT) model. It defines the semantic structure, syntax bindings, code lists, and validation rules for electronic invoices in the UAE.&nbsp;
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Enterprise Interoperability Architecture&nbsp;</li>
</ul>
This outlines the UAE DCTCE architecture at a business and conceptual level. It is designed to provide clarity for business stakeholders and serve as an introductory guide for technical teams.&nbsp;
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">Solution Architecture&nbsp;</li>
</ul>
This defines the UAE DCTCE architecture from a technical implementation perspective. It is intended for service providers and technical teams to guide the development and deployment of compliant e-invoicing solutions.&nbsp;
&nbsp;
These documents can be accessed <a href="https://openpeppol.atlassian.net/wiki/spaces/PAE/pages/4267835414/Peppol+UAE+DCTCE" target="_blank" rel="noopener">here</a>.&nbsp;&nbsp;
&nbsp;
What&rsquo;s Next?&nbsp;
Additional specifications, such as the UAE Tax Data Document (PINT), are expected to be released later this month.&nbsp;
&nbsp;
Stay tuned for further updates as the UAE continues to roll out its e-invoicing framework. Businesses and service providers are encouraged to begin preparations now to ensure timely compliance with the upcoming requirements.&nbsp;

The PASR and other supporting technical documents are essential for both service providers and businesses operating in the UAE. Staying up to date with these evolving requirements is crucial for ensuring compliance and successful integration.

UAE advances in Its e-invoicing journey – Key Technical Specifications Released

As <a href="https://www.pagero.com/compliance/regulatory-updates/united-arab-emirates">previously reported</a> by Pagero, the <a href="https://www.pagero.com/compliance/solutions/e-invoicing-united-arab-emirates">UAE</a> has proposed adopting a 5-corner model. In the model, accredited service providers will play an important part, as they will be responsible for validating, exchanging and reporting the invoice data to the tax authority. Only certified service providers will be allowed to participate in the exchange, which makes the accreditation an essential part of engaging in the invoice exchange.&nbsp; 
What do accreditation requirements imply?
The <a href="https://mof.gov.ae/accreditation-of-e-invoicing-service-providers/">accreditation requirements</a> are comprehensive, but among other criteria, service providers need to:
<ul>
<li>Successfully conduct pre-approval testing, production trail run, pre-approval certification and tax data reporting testing;</li>
<li>Be an active <a href="https://www.pagero.com/compliance/peppol">Peppol</a>-certified service provider;</li>
<li>Have documented evidence of operating as a service provider for at least two years;</li>
<li>Fulfill insurance requirements in the UAE;</li>
<li>Have ISO certifications: ISO/IEC 27001 and ISO 22301.</li>
</ul>
An exhaustive list of the requirements can be found on the Ministry of Finance's <a href="https://mof.gov.ae/accreditation-of-e-invoicing-service-providers/" target="_blank" rel="noopener">website</a>. 
Pagero&rsquo;s next steps
Pagero is actively involved in securing accreditation, underscoring our dedication to fulfilling our customers' needs and playing a crucial role in the successful implementation of the 5-corner model in the UAE.

As a vital step in establishing the framework for the upcoming 5-corner model, the UAE Ministry of Finance released the accreditation requirements for service providers.&nbsp;

UAE releases service provider accreditation requirements

The UAE MOF of Finance has issued an <a href="https://mof.gov.ae/wp-content/uploads/2025/02/UAE-eInvoicing-Public-Consultation-document.pdf">e-invoicing consultation paper</a> open for feedback from all interested stakeholders until February 27, 2025. This input will be crucial in shaping the future of <a href="https://www.pagero.com/compliance/solutions/e-invoicing-united-arab-emirates">e-invoicing in the UAE</a>.
&nbsp;
The documentation clarifies the path forward, confirming the use of the Peppol network and the Peppol (PINT AE) format in a 5 Corner model approach.
&nbsp;
Stay tuned for more updates on this development!

The Ministry of Finance (MOF) has launched a public consultation on UAE e-invoicing Programme, aiming to gather stakeholder feedback on proposed data dictionary requirements to ensure transparency and alignment with industry needs.

The Ministry of Finance invites a public consultation on UAE e-invoicing 

UAE has announced the issuance of Federal Decree-Law No. 17 of 2024, which amends key provisions of <a href="https://uaelegislation.gov.ae/en/legislations/1625/download" target="_blank" rel="noopener">Federal Decree-Law No. 28 of 2022 </a>&nbsp;of tax procedures. Additionally, Federal Decree-Law No. 16 of 2024 introduces amendments to some provisions of <a href="https://uaelegislation.gov.ae/en/legislations/1227/download" target="_blank" rel="noopener">Federal Decree-Law No. 8 of 2017 </a>related to Value Added Tax (VAT).
&nbsp;
Below is the key summary of the changes.
 Definitions
Several definitions have been added or revised to support the implementation of <a href="https://www.pagero.com/compliance/solutions/e-invoicing-united-arab-emirates">e-invoicing</a>, now including specific terms relevant to the e-invoicing system.
&nbsp;
Input VAT recovery
Article 55 has been amended to require taxable persons to retain tax invoices compliant with the Electronic Invoicing System as a condition for input VAT recovery. This requirement applies to all invoices issued or required to be issued as electronic invoices.
&nbsp;
Tax invoices and credit notes
Articles 65 and 70 have been amended to specify that taxable persons subject to e-invoicing requirements must issue invoices, credit notes, and other related electronic documents in accordance with system standards.
&nbsp;
Penalties for non-compliance
Article 76 has been amended to include penalties for failing to issue tax invoices and credit notes within the specified timelines.

The UAE Ministry of Finance introduced legislative updates that follow the recent launch of the dedicated e-invoicing obligation landing page. This step further demonstrates the country's commitment to implement e-invoicing by the planned timelines.

UAE releases legislative amendments for the upcoming e-invoicing mandate

This resource outlines the initiative's key objectives and will be the go-to source for stakeholders navigating this digital transition. 
The UAE's new <a href="https://mof.gov.ae/einvoicing/" target="_blank" rel="noopener">e-invoicing system</a> will implement a <a href="https://www.pagero.com/guides/electronic-tax-reporting-invoicing-model" target="_blank" rel="noopener">decentralized 5-corner model</a>, utilizing the <a href="https://www.pagero.com/compliance/peppol" target="_blank" rel="noopener">Peppol network</a> to enable seamless invoice exchange and ensure full platform interoperability. This approach allows for efficient, secure transmission of electronic invoices between service providers of trading parties, with only certified providers permitted to submit data to a centralized platform managed by the Tax Authority. 
The timelines for the mandate roll-out have been further clarified as follows:
<ul>
<li>Q4 2024: Service providers can begin the accreditation process, with further details expected to be released soon;</li>
<li>Q2 2025: Legislation updates will be introduced;</li>
<li>Q2 2026: Phase 1 go-live. </li>
</ul>
With e-invoicing and CTC rapidly gaining traction across the GCC &mdash; particularly in <a href="https://www.pagero.com/compliance/regulatory-updates/saudi-arabia" target="_blank" rel="noopener">Saudi Arabia</a> and now the UAE &mdash; it's crucial for businesses in the region to stay ahead of this digital transformation. Pagero is actively monitoring developments in the UAE to ensure you're fully informed and prepared. Stay tuned for more updates!

As reported in a previous update, the UAE has announced plans to introduce a CTC mandate. The country has now made further progress by launching a dedicated e-invoicing landing page through the Ministry of Finance (MoF), which serves as the primary resource for all official announcements and updates related to the new mandate.

UAE releases a dedicated landing page for the previously announced CTC mandate

The Ministry of Finance of the United Arab Emirates (MoF) has revealed its countrywide CTC e-invoicing mandate to the broader public.
&nbsp;
The UAE has decided to opt into the DCTCE or 5-corner model, leveraging Peppol specifications. By this move, UAE joins the growing group of countries deploying the most modern CTC model, including among others Singapore and Belgium. UAE intends to establish its own Peppol Authority and leverage Peppol PINT as format, in a similar fashion to other non-EU Peppol markets, such as Malaysia, Japan, Singapore, Australia and New Zealand.
&nbsp;
The initial scope will include B2B and B2G transactions, while B2C transactions will be looked into in the future.
&nbsp;
The MoF has indicated that they have no plans to develop any e-invoice portal for SMEs; this role must be fulfilled by Accredited Service Providers (SP). They are, however, considering making limited free-of-charge offerings as one of ASP accreditation criteria.
&nbsp;
We expect further announcements and clarifications from UAE according to the following schedule:
<ul>
<li>Q3 2024: Development of ASP certification requirements and procedures, as well as development of UAE data dictionary</li>
<li>Q2 2025: Release of e-invoicing legislation
<ul>
<li>MoF envisages that businesses will be able to contract SP and start exchanging e-invoices under 4-corner model prior to entry into force of the reporting requirement.</li>
</ul>
</li>
<li>December 2025: Rollout strategy
<ul>
<li>Release of rollout schedule based on taxpayers' size</li>
</ul>
</li>
<li>July 2026: Phase 1 go live for reporting
<ul>
<li>MoF envisions a gradual introduction based on company size, but companies will be allowed to voluntarily opt-in for reporting earlier than envisaged timelines</li>
</ul>
</li>
</ul>
&nbsp;
If you want to learn more about the 5-corner model (which Pagero has co-developed with other stakeholders, incl. tax administrations), we encourage you to read <a href="https://peppol.org/documentation/technical-documentation/ctc-documentation/" target="_blank" rel="noopener">Peppol CTC Reference Document</a>, <a href="https://www.pagero.com/guides/electronic-tax-reporting-invoicing-model" target="_blank" rel="noopener">DCTCE model</a>, or if you want to have an easily-digestible version, check out our <a href="https://www.pagero.com/blog/what-is-peppol" target="_blank" rel="noopener">Peppol blog</a> on Peppol CTC, which as well covers basics of 4-corner model and Peppol.
&nbsp;
Stay tuned with Pagero for updates in the UAE.

During the 2024 Dubai E-invoicing Exchange Summit, the UAE Ministry of Finance revealed further details of the long-anticipated CTC e-invoicing framework to the public.

UAE CTC e-invoicing framework officially unveiled 

The Ministry of Finance of the United Arab Emirates (UAE MoF) <a href="https://mof.gov.ae/the-ministry-of-finance-announces-its-transformational-projects/" target="_blank" rel="noopener">introduced</a> e-invoicing implementation to simplify business processes, help with tax reporting, offer real-time insights into economic performance, and reduce paper wastage.
&nbsp;
MoF intends to introduce the &ldquo;E-Billing System&rdquo;&nbsp;project which considers implementing the advanced countrywide electronic billing system. This project will presumably introduce Peppol CTC mandate covering nationwide e-invoicing and e-reporting requirements.
&nbsp;
Furthermore, the system will automate the procedures for filing tax returns with the tax system to facilitate filing tax returns, improve tax compliance, and reduce tax evasion cases. The implementation of this project is planned on a gradual basis and is intended to be completed by July 2025.

The UAE unveils further details around the announced e-invoicing mandate. The government will likely implement Peppol specifications for the countrywide e-invoicing obligation by July 2025.

UAE is moving towards introducing Peppol by July 2025

The <a href="https://www.albayan.ae/economy/uae/2023-07-11-1.4693675" target="_blank" rel="noopener">transformational projects</a> align with the new government work methodology and the general concept of transformational projects in the UAE. The five major strategic initiatives are as follows:
&nbsp;
<ul>
<li>Supply strategy for the federal government</li>
<li>Transparency in climate spending data</li>
<li>Public-private partnership</li>
<li>Tax</li>
<li>Electronic billing system</li>
</ul>
&nbsp;
The <a href="https://mof.gov.ae/" target="_blank" rel="noopener">Ministry of Finance</a>, in partnership with the <a href="https://www.tax.gov.ae/en/" target="_blank" rel="noopener">Federal Revenue Service</a>, is the one developing the &ldquo;electronic billing system&rdquo; project to activate an advanced national system, automating the sending and delivery of tax returns. The project includes different stages and goals, aiming at reducing tax evasion.
&nbsp;
More details are expected to be released soon by the UAE tax authority on the future e-invoicing system. Pagero is closely monitoring the developments in the country and will inform its stakeholders about the key changes in due time.

The Ministry of Finance announced five major strategic initiatives to increase the country&rsquo;s competitiveness, including an e-invoicing system.

UAE is developing an electronic billing system 

The UAE Cabinet of Ministers released <a href="https://www.tax.gov.ae/-/media/Files/FTA/links/Legislation/Federal-Tax-Procedures/Cabinet-Decision-No-49-of-2021--For-Publishing.pdf">Cabinet Decision No. (49) of 2021</a> to lower part of the penalties levied by <a href="https://www.tax.gov.ae/-/media/Files/FTA/links/Legislation/Federal-Tax-Procedures/04-Cabinet-Resolution-No40of2017-on-Administrative-Penalties-for-Violation.pdf">Cabinet Decision No. (40) of 2017</a>. The amendment will be taking place on 28 June 2021.
&nbsp;
According to the amendment, the penalties imposed before the effective date and have not yet processed will be waived 70% of the total unpaid amount if it meets all the following conditions:
&nbsp;
&nbsp;
<ul>
<li>The penalties imposed by violating Cabined Decision No. (40) before 28 June 2021 have not yet paid the total amount;</li>
<li>The registrant has settled taxes in full amount by 31 December 2021;</li>
<li>The 30% of the administrative penalties that haven&rsquo;t paid up before 28 June 2021 need to be processed no later than 31 December 2021.</li>
</ul>

The UAE Federal Tax Authority reduced fines for violating VAT laws. The changes will enter at the end of June, and penalties imposed before the effective date will be reduced to 30% of the amount in certain conditions.

UAE amends VAT administrative penalties

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Prepare your business for seamless compliance with the UAE's e-invoicing mandate, the E-billing System, by connecting your business to Pagero&rsquo;s cloud-based network.

UAE E-billing System

Get the latest news and updates on e-invoicing, e-ordering, e-archiving and indirect tax regulatory requirements.

Regulatory updates - United Arab Emirates

E-Invoicing/CTC Model:
5-corner model
Mandatory Infrastructure:
MoF/FTA
Mandatory Format:
PINT AE
Mandatory for Issuing:
-Eventually all domestic taxpayers in B2B and B2G transactions
-Roll-out plan TBA Q4 2025
-Phase 1 go-live: July 2026
Mandatory for Receiving:
-Eventually all domestic taxpayers in B2B and B2G transactions
-Roll-out plan TBA Q4 2025
-Phase 1 go-live: July 2026
eSignature:
Not Required
Archiving Period:
&ndash; 5 years, can be extended with another 4 years in certain cases
&ndash; 15 years for real estate
Archiving Abroad:
Allowed&nbsp;

United Arab Emirates

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Regulatory updates - United Arab Emirates

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