Businesses in the UAE with annual revenues of Dh50 million or more must appoint an Accredited Service Provider by October 30, 2026, and implement the country’s e-invoicing system by January 1, 2027, the Federal Tax Authority (FTA) has announced.
The authority urged businesses covered by the requirements to meet the deadlines, warning that delays could result in administrative penalties of Dh5,000 for each month, or part of a month, of non-compliance.
The penalty applies to delays in implementing the e-invoicing system and includes failure to appoint an Accredited Service Provider within the prescribed timeframe. The FTA said the measures were intended to encourage compliance and support the UAE’s wider digital transformation programme.
Businesses with annual revenues below Dh50 million will have additional time to prepare. They must appoint an Accredited Service Provider by March 31, 2027, and implement the system by July 1, 2027.
The FTA encouraged companies to begin preparations early to avoid last-minute difficulties. Businesses must select a suitable Accredited Service Provider, establish a contractual relationship and integrate their systems with the provider. They must also complete the required procedures through EmaraTax, the authority’s digital platform for tax services.
According to the FTA, the e-invoicing system is designed to simplify, standardise and automate invoicing processes, improving efficiency for businesses and other stakeholders.
The authority said its readiness had been assessed through a pilot phase before the mandatory rollout. The exercise examined the efficiency of integration procedures, the user experience and the preparedness of participating parties.
The FTA added that implementation would follow a phased approach, supported by ongoing communication with government entities and private-sector organisations. The aim is to ensure businesses understand the requirements and complete the necessary preparations before the relevant deadlines.
Flexible implementation arrangements and streamlined procedures have also been introduced to help companies maintain normal operations while transitioning to the new system.
As part of its outreach programme, the authority continues to organise in-person awareness events across the UAE, alongside virtual information sessions. These sessions explain which businesses fall within the system’s scope, the conditions and procedures for implementation, the process for connecting to the system and how to activate the service through EmaraTax.
The FTA advised businesses to review the applicable legislation, requirements and guidance published on its official website.
The deadlines mark a key step in the UAE’s move towards digital tax administration. Companies are being encouraged to assess their existing invoicing systems, coordinate with service providers and complete the necessary technical and administrative preparations well before implementation becomes mandatory.
