UAE Opens Public Consultation on E-Invoicing Data Dictionary
The United Arab Emirates Ministry of Finance and the Federal Tax Authority have launched a public consultation on the e-invoicing data dictionary, allowing stakeholders to provide input on the technical specifications of e-invoice formats. The consultation runs until 27 February 2025 and is a key step toward the country's transition to decentralized e-invoicing.
Phased Rollout of E-Invoicing
The UAE’s e-invoicing system will be introduced in stages, starting with:
- Q4 2024: Draft technical requirements, Accredited Service Provider (ASP) framework, and Data Dictionary development.
- Feb 2025: Public consultation on the data dictionary.
- Q2 2025: Definition of service provider requirements and draft legislation.
- Nov 2025: Final rollout strategy.
- July 2026: Phase 1 launch, with future phases to follow.
Decentralized 5-Corner Peppol Model
The UAE will adopt a Decentralized Continuous Transaction Control and Exchange Model using the 5-corner framework, similar to the Peppol International Invoice (PINT) standard. This model enables direct B2B and B2G e-invoicing between businesses and government entities without mandatory pre-clearance from the tax authority. ASPs will validate invoices and forward them to recipients, with the Federal Tax Authority receiving a copy as the fifth participant in the exchange.
Part of a Larger E-Billing Initiative
The e-invoicing mandate is part of a broader UAE e-billing system, designed to:
- Automate tax return filings and improve tax compliance.
- Reduce tax fraud and enhance transparency.
- Streamline cross-border trade through recognized electronic document exchange.
This initiative follows Saudi Arabia’s e-invoicing rollout in December 2021 and signals the UAE’s commitment to modernizing tax administration and enhancing digital trade capabilities.
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