UAE launches e-Invoicing laws to digitize tax collection
New amendments streamline VAT and tax procedures, setting the stage for automated, standardized invoicing.

The UAE’s eInvoicing system aims to boost efficiency and compliance, facilitating immediate tax reporting through digital channels aligned with global standards.
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The UAE has announced new laws aimed at modernizing tax collection and record-keeping for businesses, marking a significant shift toward digital transformation in the country’s financial landscape.
The Ministry of Finance (MoF) has issued Federal Decree-Law No. 17 of 2024, amending key provisions of Federal Decree-Law No. 28 of 2022 concerning tax procedures, alongside Federal Decree-Law No. 16 of 2024, which amends several articles of Federal Decree-Law No. 8 of 2017 related to Value Added Tax (VAT).
These changes establish the groundwork for an e-Invoicing system, underscoring the government’s commitment to digital innovation and enhancing national economic efficiency.
The e-Invoicing system aims to streamline, standardize, and automate invoicing for UAE businesses through digital channels, benefiting both private enterprises and government entities.
This system enables the immediate exchange of invoices, ensuring seamless tax reporting to the Federal Tax Authority (FTA) while improving tax compliance and security.
Operating on a five-corner, decentralized model, e-Invoicing will allow sellers and buyers to exchange invoices via Accredited Service Providers (ASPs), which will then transmit tax invoice data directly to the FTA.
In line with international best practices, the e-Invoicing system adopts the OpenPeppol standard. This integration aligns with global protocols, supporting secure and efficient tax processing. Under the newly introduced laws, the MoF is empowered to define “e-Invoicing system” regulations, determine effective dates, and specify which entities will be required to implement the system.
Amendments in Federal Decree-Law No. 16 of 2024 on VAT expand definitions of “tax invoice” and “tax credit note” to include electronic versions. These amendments reinforce that VAT refunds will now hinge on compliance with e-Invoicing requirements where applicable, setting a standard for electronic documentation.
Businesses subject to this e-Invoicing rollout will need to issue invoices and credit notes electronically and maintain these records in digital formats that meet updated archiving standards.
The MoF is preparing a phased implementation strategy, with further details on specific businesses, transaction types, and implementation timelines to be provided through upcoming decisions.
The Ministry has reaffirmed its commitment to ensuring a smooth transition by engaging stakeholders and maximizing the benefits of this digital shift.
Through these legislative changes, the UAE continues to align with its strategic economic goals, embracing digital transformation to enhance both national and regional competitiveness.
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