The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
Dubai, UAE: The UAE government will introduce a mandatory e-invoicing system starting from July 2026. Experts say businesses should start preparing now and learn from countries that have already implemented this system.
E-invoicing means sending and receiving invoices in a structured digital format instead of PDF or paper invoices. This system will connect businesses directly with the Federal Tax Authority (FTA) through approved service providers.
When Will It Start?
- The UAE will begin with a pilot phase on July 1, 2026.
- After that, implementation will happen in stages:
- Large businesses (annual revenue above AED 50 million)
- Must appoint an approved provider by July 31, 2026
- Must fully comply by January 1, 2027
- Smaller businesses
- Must appoint a provider by March 31, 2027
- Must comply by July 1, 2027
- Government entities: Deadline is October 1, 2027
Why Is This Important?
E-invoicing is not just about tax compliance. It can also improve how businesses manage their finances.
Countries that adopted e-invoicing early have seen many benefits:
- Lower processing costs
- Faster invoice approvals
- Fewer mistakes
- Better tax transparency
- Reduced fraud
- Faster audits
- Better financial data and reporting
Some reports say companies can reduce invoice processing costs by up to 60% because automation reduces manual work.
What Should Businesses Do Now?
Experts recommend that companies:
- Check all their current invoicing systems.
- Upgrade software to support structured digital invoices.
- Clean and organise their financial data.
- Work together across departments (finance, IT, sales, tax).
- Train employees before the system becomes mandatory.
Companies that treat e-invoicing as a long-term digital upgrade, not just a tax requirement, usually get better results.
What Happens If Businesses Don’t Comply?
There will be penalties for non-compliance. Businesses that fail to appoint an approved provider or fail to follow the rules may face fines. Authorities have indicated that penalties could go up to AED 5,000 per month, depending on the violation.
Final Thoughts
The UAE is moving towards a more digital and transparent tax system. Businesses that prepare early will face fewer problems later. Early preparation can also help companies improve efficiency and stay competitive in the market.
Experts advise businesses not to wait until the last minute. Starting now will make the transition smoother and less stressful.
For detailed insights on UAE e-invoicing requirements, deadlines, and compliance steps, read our full guide here:
https://www.reyson.ae/blog-detail/e-invoicing-what-businesses-should-know
