The UAE has established the legal and operational framework for mandatory electronic invoicing, covering exemptions, self-billing, in-country data storage and outage reporting.
The United Arab Emirates (UAE) Ministry of Finance (MoF) has issued Ministerial Decision No. 243 of 2025 on 28 September 2026, establishing the legal and operational framework for the Electronic Invoicing (e-invoicing) System across the country.
The decision applies to any Person conducting Business in the UAE across every Business Transaction, unless specifically excluded. The excluded categories are:
- Sovereign Activities: transactions by Government Entities acting in a sovereign capacity where they do not compete with the private sector.
- Air Passenger Transportation: international passenger air transport services where an Electronic Ticket is issued, together with directly related ancillary services covered by an Electronic Miscellaneous Document.
- Air Freight: international air transportation of goods where an Airway Bill is issued. This exclusion is temporary and applies for a maximum of 24 months from the date the Electronic Invoicing System becomes effective.
- Financial services that are exempt from VAT or zero-rated under Article 42 of the VAT Executive Regulation.
Excluded persons or entities may voluntarily issue, transmit and report e-invoices. Once they opt in, compliance with the system rules becomes mandatory, although administrative penalty decisions for violations will not apply to them.
Issuance and reporting
Issuers must generate and transmit structured Electronic Invoices for business transactions. They must also issue Electronic Credit Notes in cases of cancellation, agreed price reductions, returned consideration, or numerical or administrative errors.
E-invoices and credit notes must generally be issued and transmitted through the system within 14 days from the Date of Business Transaction. For VAT-registered entities, issuance timelines must also comply with the requirements prescribed under the VAT Law. Both issuers and recipients must report processed e-invoices and credit notes to the Federal Tax Authority (FTA) within timelines specified by the Minister.
Service providers and special arrangements
Businesses must meet their transmission and reporting obligations by appointing an Accredited Service Provider recognised by the Ministry of Finance under Ministerial Decision No. 64 of 2025. They must inform the provider in writing within five Business Days of receiving confirmation from the FTA of any changes to their registered tax details.
An authorised agent acting on behalf of a principal may handle the issuance and transmission of e-invoices or credit notes through the system. Under self-billing, a recipient may issue e-invoices or credit notes on behalf of the issuer for goods or services supplied, provided that both are VAT Registrants and meet the conditions set under the VAT Executive Regulation or determined by the Minister.
Data storage, access and outages
All e-invoices, credit notes and associated transaction data must be stored within the UAE for the timeframes mandated under the Tax Procedures Law. The FTA has broad authority to access and use the data stored within the system. It may also share the data with other domestic government entities or with foreign government bodies pursuant to international treaties and agreements.
If a technical malfunction or system outage prevents compliance, both issuers and recipients must notify the FTA within two Business Days through the designated reporting procedures.
The phased implementation schedule will be determined by the Minister, and businesses operating in the UAE will need to prepare for the rollout in line with the timelines announced.
The decision was issued by Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini. It comes into force immediately upon publication in the Official Gazette and repeals all prior conflicting regulations. The amendments are effective from 1 October 2026.
