On July 1st, 2026, the United Arab Emirates Ministry of Finance (MoF), in collaboration with the Federal Tax Authority (FTA), officially launched the pilot phase of its mandatory national e-invoicing program, called the E-Billing System.
As outlined in Ministerial Decision No. 244 of 2025 and UAE Electronic Invoicing Guidelines, published on June 1, 2026 [↗︎], this milestone initiates the first phase of the UAE’s digital tax transformation strategy, and prepares for a phased rollout throughout 2027.
July 2026 pilot phase is now live
The UAE MoF and the FTA formally brought the E-Billing System pilot online with a pilot, cross-sector group, represented and selected directly by the authorities from large VAT-registered enterprises based on high revenue (AED 50M and more, ~12 M€).
The E-Billing System relies on a 5-Corner model relying on the Peppol network, where Vendors, Buyers, accredited service providers, and the tax authority interact under precise technical rules:
- PINT AE Billing 1.0.1 [↗︎]: Sets the XML structure and validation schemas for standard e-invoices routed through Accredited Service Providers (ASPs).
- PINT AE Self-Billing 1.0.1 [↗︎]: The same, for e-invoices created on behalf of Vendors by the Buyer (self-billing)
- UAE Tax Data Document (TDD) 1.0.3 [↗︎]: Dictates the automated tax reporting file that to be transmitted to the central FTA portal (acting as the 5th Corner)
During this initial trial phase, the mandatory testing scope strictly applies to domestic Business-to-Business (B2B) transactions. Under the UAE pilot phase, Vendors in scope are legally obligated to issue an e-invoice.
If the Buyer is not yet onboarded to the Peppol network, the Vendor’s ASP will transmit the data the FTA portal and a human-readable copy, such as a PDF, will be transmitted to the unconnected Buyer.
Taxpayers outside the official pilot group are permitted and encouraged to join the system voluntarily starting July 1, 2026. Voluntary participants operate under identical technical standards (appointing an ASP and exchanging e-invoices in PINT AE XML format) but benefit from full penalty exemptions. This voluntary window enables companies to test the processes, resolve data issues, onboard finance teams in a live environment without exposure to non-compliance fines, as indicated under Cabinet Decision No. 106 of 2025 [↗︎].
UAE’s current phased rollout implementation timeline
Following the July 2026 pilot launch and voluntary adoption window, the e-invoicing mandate will progressively expand following two major steps:
- Step 1 (ASP Appointment & System Readiness): Taxpayers must contractually appoint an Accredited Service Provider (ASP) via EmaraTax, obtain their Peppol Participant ID, and configure internal systems to receive inbound structured PINT-AE e-invoices.
- Step 2 (Mandatory Live Issuance & FTA Reporting): Taxpayers must actively issue and transmit all outgoing B2B/B2G invoices as structured PINT-AE XML files through their ASP, automatically reporting transaction tax data directly to the FTA.
Subsequently, the e-invoicing mandate will be phased across three distinct entity groups according to the following timeline:
- Phase 1 – Large Enterprises (with revenue equal to AED 50M / ~12 M€ and more):
- Step 1: October 30, 2026 (extended from July 31, 2026)
- Step 2: January 1, 2027
- Phase 2 – Remaining Taxpayers, including SMEs (with revenue below AED 50M):
- Step 1, ASP appointment & e-invoicing receiving readiness: March 31, 2027
- Step 2, mandatory e-invoicing issuance & FTA Reporting: July 1, 2027
- Phase 3 – Government Entities & Public Sector (B2G / G2B):
- Step 1,ASP appointment & e-invoicing receiving readiness: March 31, 2027
- Step 2,mandatory e-invoicing issuance & FTA Reporting: October 1, 2027
