Businesses across the UAE are gearing up for the transition to mandatory e-invoicing in July 2026. Mandatory e-invoicing will standardise invoicing compliance for Business-to-Business (B2B) and Business-to-Government (B2G) transactions.
Are you a tax compliance leader in the UAE? Our guide shows you how to prepare your business for the changes ahead.
Background on the E-Billing System
The E-Billing System is one of five strategic projects led by the UAE Ministry of Finance (MoF). It is an initiative within the nation’s broader digital transformation strategy and was announced in July 2023.
The E-Billing System will comprise standardised procedures for electronic invoicing (e-invoicing) to enhance transparency and operational efficiency across sectors. This marks a milestone in financial governance. Furthermore, it reflects the UAE’s commitment to aligning with international best practices in digital finance.
The Federal Tax Authority will begin enforcing the first phase of mandatory e-invoicing in July 2026. This takes us to the 5 Corner Model, which the MoF will bring into the UAE’s e-invoicing framework.
The 5 Corner Model aims to improve security to stop fraud and seeks to limit access to sensitive data. The model also manages metadata circulation to ensure accurate routing and processing of invoices.
Within the model, two key events take place:
- Exchange. *Accredited Service Providers (ASPs) will transform customers’ e-invoicing data into the mandated format (PINT AE) and validate all e-invoice mandated fields before exchanging the invoice within the Peppol network (more on Peppol in the next section).
- Tax reporting. Tax data from invoices are included in the 5 Corner Model procedure. The FTA/MoF acts as a checkpoint to ensure reporting outcomes are compliant.
*An Accredited Service Provider (ASP) refers to an organisation or entity offering e-invoicing technology and services. They have undertaken an accreditation process and been approved by the Ministry of Finance to operate as an ASP. You can read more ASPs further down the page.
What is the 5 Corner Model? A detailed look
The 5 Corner Model is a model for e-invoicing that accelerates the invoice lifecycle from creation to payment. It is a standarised way of e-invoicing that aligns with tax regulations and provides secure invoice data reporting.
There are sophisticated requirements for reconciliation to be successful when it comes to the 5 Corner Model. The UAE is implementing the infrastructure and engagement with the business community to align with the model.
The 5 Corner Model is the gold standard in real-time transactional reporting through e-invoicing. It enables companies to comply with their VAT reporting obligations.
Implementing the 5 Corner Model helps businesses to comply with UAE regulations while boosting efficiency and strengthening trading partner relationships in today’s digital economy.
A note about OpenPeppol and Peppol: An international not-for-profit organisation, ‘OpenPeppol’ has been maintaining the 5 Corner Model since inception in 2008. An arm of OpenPeppol is ‘Peppol’. Entities in many regions are connected to the Peppol network via the 5 Corner Model.
The Peppol network standardises electronic exchange of business documents securely on a global scale. It enables both public and private organisations to send and receive documents securely using a universal format.
Which processes will be affected?
The model will impact e-invoicing and e-reporting management, and Accounts Receivable (AR) and Accounts Payable (AP) processes.
“Automating AR and AP processes and compliance streamlines the entire invoicing lifecycle, from issuance to archiving, reducing manual errors, speeding up payment cycles, and enhancing tax data accuracy,” explained Helal Alrefai, Indirect Tax Go-To-Market Manager at Thomson Reuters.
Tax functions need to embed the UAE e-invoicing framework into their billing operations. Usually, this will involve an assessment of their current Enterprise Resource Planning (ERP) systems and accounting software.
Significance of the Service Metadata Publisher
The Service Metadata Publisher (SMP) is set to play a crucial role in the 5 Corner Model for the UAE. The SMP is a decentralised database that manages registered business metadata and their access points in the Peppol network. The SMP will facilitate compliance, security, and efficiency in the e-invoicing process.
The SMP function will enable participants of the UAE Peppol network to access an eDelivery Messaging Infrastructure. The eDelivery infrastructure enables organisations to discover legal, organisational, and technical capabilities.
Participants of the Peppol network, such as businesses and government entities, publish their capabilities and settings in an SMP. The SMPs store crucial information about the B2B and B2Gs in extensive eDelivery Messaging Infrastructures for information exchange.
At this stage, it is unclear whether the UAE will launch its own SMP or use the Peppol SMP. Check back on the MoF’s FAQs page for updates.
What are the 5 corners of the model?
Each corner represents the flow of electronic invoices in the UAE’s e-invoicing system. The 5 Corners are:
- Corner 1: The supplier
- Provides their e-invoice data in their chosen Accredited Service Provider (ASP).
- Corner 2: The supplier’s ASP
- The supplier’s ASP ensures the data in the invoice is valid. Then, it’s converted into the required format if needed.
- The supplier’s ASP *sends the e-invoice to the buyer’s ASP.
- In parallel, the supplier’s ASP sends the invoice to the Federal Tax Authority (FTA).
- Corner 3: The buyer’s ASP
- Collect the invoice from the FTA or supplier’s ASP
- Converts it to the format required by the buyer
- Delivers the invoice to the buyer’s system in the required format
- If the validation of the invoice is successful, the buyer’s ASP sends the Tax Data Document to the FTA
- Corner 4: The buyer
- Receives and processes the electronic invoice
- Integrates it into their accounting or Enterprise Resource Planning (ERP) system
- Uses it to process payments and keeps records
- Corner 5: The Federal Tax Authority and the UAE Ministry of Finance
- Acts as the central checkpoint
- Validates invoices against tax regulations
- Collects and stores the Tax Data Document from Corner’s 2 and 3 (the supplier’s ASP and/or the Buyer’s ASP). It then sends a ‘Message Level Status’ if the Tax Data Document has been reported successfully.
*B2B and B2Gs in the UAE will not interact directly with Peppol. Instead, ASPs will transmit, validate, and report the invoice data on behalf of buyers and suppliers.
What makes the 5 Corner Model ‘revolutionary’?
E-invoicing promotes tax transformation in the United Arab Emirates. According to Helal Alrefai, Indirect Tax Go-To-Market Manager at Thomson Reuters, the 5 Corner Model is revolutionary. The requirement of stakeholders and systems to exchange data in ‘real-time’ or near real-time makes it revolutionary.
He also noted that e-invoicing is beneficial for all. “Beyond compliance, e-invoicing helps businesses improve cash flow, reduce processing time, and operate more strategically in a digital economy.
“These upcoming changes will set the foundation for transparent, automated, and secure VAT compliance across the region.”
Will UAE e-invoicing help prevent VAT leaks?
Yes, it will. Value Added Tax (VAT) leakage is the loss of potential VAT revenue. It occurs when businesses do not follow the tax rules or are not efficient in collecting taxes.
E-invoicing in the UAE helps to prevent VAT leaks by enabling near real-time reporting. The Federal Tax Authority (FTA) will also catch lack of transparency on VAT by being a part of the process.
“The real-time access to structured invoice data enables the FTA to improve VAT oversight, making it easier to detect any tax evasion early, and automate tax audit processes,” said Helal, Alrefai, Indirect Tax Go-To-Market Manager at Thomson Reuters.
The final e-invoicing regulations are not yet in full swing. However, existing VAT legislation outlines both the penalties and financial risks for non-compliant tax invoices. For instance, Cabinet Decision No. 49 of 2021 specifies several key penalties, including:
- Not issuing a tax invoice or not following e-invoicing rules can lead to a penalty of AED 2,500 (Articles 25 & 26).
- For repeat offenses, the penalty is AED 5,000.
- Failure to keep proper records carries the penalty of AED 10,000 (Article 2).
- For repeated failure to maintain records, the penalty doubles to AED 20,000.
“Beyond fines, there’s also a risk that non-compliant invoices may block input VAT recovery and that can directly impact a business’s cash flow and failure to claim the input tax,” Helal added.
ASPs role in UAE’s e-invoicing process
ASPs will play a pivotal role in UAE’s upcoming e-invoicing system. ASPs will be responsible for transforming, validating, exchanging, and reporting invoice data with the Federal Tax Authority (FTA). From July 2026 onwards, e-invoicing in the UAE cannot be done without the support of an ASP.
How are service providers accredited?
The Federal Tax Authority (FTA) is accrediting service providers to ensure they meet specific criteria and standards.
To secure accreditation, service providers must meet a comprehensive set of requirements. Prerequisites include achieving and maintaining active Peppol certification by successfully completing OpenPeppol conformance tests and adhering to Peppol interoperability rules.
Service providers must submit documented evidence of operating and managing an Electronic Invoicing System for at least two years. They also need to possess a valid UAE trade license with proof of paid-up capital. It also goes without saying, they need to fulfil Corporate Tax and VAT registration obligations.
Peppol certification and compliance
The ISO/IEC 27001 standard is an information security requirement that e-invoicing service providers must follow. Additionally, Peppol introduces extra security measures for safely exchanging electronic documents. This layered security approach ensures that documents sent through Peppol are protected and trustworthy.
“These controls are handled by the ASPs, which means businesses benefit from high levels of security and compliance without having to build it all in-house,” said Helal Alrefai, Indirect Tax Go-To-Market Manager at Thomson Reuters.
The UAE government requires that service providers have ISO/IEC 27001 certification, which demonstrates that they manage information securely. This certification helps e-invoicing service providers keep financial data safe. Providers must also offer continuous support and keep their e-invoicing systems updated and functioning well.
“It gives businesses peace of mind that their invoice data is being handled in a secure, compliant, and regulator-approved environment,” Helal added.
Service providers in the UAE must meet local assurance requirements and pass quality tests. These tests include pre-approval trials and checking how the system handles tax data.
Information security controls are needed to comply with the new e-invoicing rules. Tools like data encryption and multi-factor authentication help businesses strengthen their protective measures.
Choosing an ASP in the UAE
The FTA has not accredited any software providers at the time of writing. The MoF is working towards publishing the list of certified ASPs after the FTA finalise the accreditation process. The Peppol directory will show businesses and organisations onboarded as ASPs. The FTA and MoF websites will host the Peppol directory online.
*Pagero’s e-invoicing solutions with Thomson Reuters’ ONESOURCE suite work together as a single trusted vendor. Customers can benefit from enhanced compliance, end-to-end tax obligations, workflow automation, and global scalability.
Helal Alrefai, Indirect Tax Go-To-Market Manager at Thomson Reuters suggests that UAE businesses should prepare their compliance processes before the deadline.
“It is critical for businesses to get ahead of this. Work with experienced, Peppol-certified ASPs, and ensure end-to-end compliance well before the July 2026 deadline.”
The time it takes to implement ASP e-invoicing solutions can vary. This depends on how complex the client’s needs are and the quality of the ASP provider.
“The smart move is to start now. Businesses can implement Peppol-ready e-invoicing software today to digitise their AP and AR processes.
“Then, once FTA reporting becomes mandatory under Corner 5, they can simply enable that feature through their existing solution.
“It’s recommended to choose a provider that’s globally Peppol certified, scalable, and already proven in other Peppol jurisdictions such as Malaysia or Singapore and future-ready for the other GCC e-invoicing rollout,” explained Helal.
*Thomson Reuters announced its acquisition of Pagero on February 26, 2024.
What should UAE businesses do next?
1. Partner with your service provider
To implement e-invoicing, you will need to choose a service provider. ASPs comply with country-specific e-invoicing regulations and ensure all submitted documents meet the required format standards. It’s also their job to support clients with both domestic compliance implementation and international business operations.
Thomson Reuters ONESOURCE Pagero, on track to become an accredited service provider, offers a comprehensive e-invoicing solution to customers locally and internationally. ONESOURCE Pagero is an experienced provider already accredited in other regions who have mandated e-invoicing.
“That’s why businesses should actively engage with experienced, Peppol-certified software providers who understand both local compliance requirements for document formatting and global compatibility,” Helal emphasised.
UAE Peppol standards (PINT AE) and your service provider
Businesses will need to create and submit e-invoices in a structured format and adhere to UAE Peppol standards (PINT AE). The specifically formatted invoices will then be sent to Accredited Service Providers (ASPs) for next steps.
On 10 June 2025, Peppol UAE Authority released the e-invoicing specifications for the upcoming mandate (“PINT AE Billing” and “PINT AE Self-Billing” standards). It introduces new compliance rules, code lists, schema details and more validation requirements. You can find more information about the PINT AE announcements on OpenPeppol.
But businesses working with an ASP are not alone. In fact, part of the service ASPs provide includes taking care of the technical complexities.
“In the UAE model, ASPs play a critical role in handling the technical complexity – from validating the required invoice format specifications to transmission and secure real-time reporting to the Federal Tax Authority (FTA),” explained Helal.
2. Get familiar with the MoF E-invoicing Data Dictionary
The UAE Ministry of Finance (MoF) published its E-invoicing Data Dictionary for public consultation on February 6, 2025. The dictionary is a glossary of terms to help businesses transition to digital invoicing in the UAE.
The E-invoicing Data Dictionary defines all mandatory and optional data fields, their formats, business rules, and definitions. Plus, it outlines common invoice types, data elements, and associated attributes.
The MoF is asking businesses and Accredited Service Providers (ASPs) for their feedback on preferred data formats. This information helps the MoF understand what is needed.
Business owners will refer to the MoF’s Data Dictionary to ensure they create compliant and accurate e-invoices. This guarantees the business’ chosen ASP can successfully process e-invoices for submission into the new system efficiently.
To continue operating in the UAE after the July 2026 deadline, businesses must have their systems and processes ready. Partnering early with an ASP will make all the difference.
Know your ASP’s role: Meeting data dictionary requirements
The UAE Ministry of Finance expects Accredited Service Providers (ASPs) to implement the UAE’s E-invoicing Data Dictionary (the Dictionary). ASPs must understand every element, rule, format, and code list defined in the Dictionary. Their systems must be configured to comply precisely with all required specifications.
A key responsibility is validating e-invoices against the Dictionary’s requirements. The ASP will check mandatory fields, data types, character limits, valid codes, and business rules. ASPs must also transform invoice data received from businesses into the standardised format. They cannot lose or misinterpret data during processing.
When validation fails, ASPs are expected to provide clear, actionable error messages to help businesses resolve issues quickly. This supports data integrity and consistency across the e-invoicing ecosystem.
The Dictionary also underpins interoperability between ASPs, the Peppol network, and the FTA’s systems. ASPs must treat it as the single source of truth and promptly implement any updates issued by the MoF.
Know your role on the buyer or supplier side
Buyers and suppliers must ensure their invoicing systems align with the Dictionary’s structure. Data should include codes for tax types, units of measure, and industry classifications. It also needs to map internal fields to standardised fields. Pre-validation checks are encouraged to minimise errors before submission.
Businesses must ensure their invoicing systems generate data that strictly adheres to these prescribed formats. This is one of the core guidelines outlined in the MoF E-invoicing Data Dictionary. Incorrect or missing data can lead to invoice rejection and compliance issues.
Business owners will also need to ensure their accounting or ERP systems are configured and up to date with any changes. To generate compliant e-invoice files, businesses must ensure all required information is captured. Internal data fields should be mapped to the fields defined in the MoF’s E-invoicing Data Dictionary.
Businesses should conduct their own pre-validation checks to minimise errors and rejections, even though the ASP will, too.
Rolling out e-invoicing in the UAE
The UAE e-invoicing implementation will be rolled out in stages. The accreditation stage started in April 2025 where the MoF began receiving applications from service providers to become ASPs.
The UAE Ministry of Finance will then issue e-invoicing legislation in the coming months. They will also provide updates on any further technical and compliance requirements.
Recent timeline of e-invoicing developments in the UAE
- The UAE Ministry of Finance (MoF) Published the Data Dictionary for public consultation on February 6, 2025.
- The MoF made the Ministerial Decision No. 64 of 2025 on the eligibility criteria for becoming an Accredited Service Provider (ASP).
- The MoF opened accreditation applications on 19 March 2025.
What will happen next?
- The UAE Ministry of Finance will announce e-invoicing legislation in the latter half of 2025.
- They will also provide clarity on the rollouts and phases. They will also release the accredited list of e-invoicing providers later this year.
- A pilot program for large taxpayers and early adopters will commence in the latter half of 2025.
- Mandatory e-invoicing will begin July 2026.
Is early planning recommended?
Yes, early and thorough planning is recommended, because the changes will affect resource allocation, IT systems, and processes. Implementing e-invoicing in the UAE will require businesses to undertake a significant change management effort.
Businesses should perform an internal analysis to ensure their systems are capturing data accurately. To facilitate a smoother transition, they should examine three key areas:
- Internal systems. Identify the data gaps between existing data and the new data standards required as part of the PINT AE.
- ASPs with a trusted, global reputation. To determine the best local service providers, businesses should start researching what will work best for their unique operations. They can engage with a service provider like Thomson Reuters ONESOURCE powered by Pagero to discuss system integrations.
- Staff training. Businesses must provide training on the new e-invoicing processes and compliance requirements. Thomson Reuters offers webinars and workshops to keep professionals up to date.
“Training teams, testing processes and cleaning up data are all elements that form part of the transformation journey,” Helal said.
Despite the deadline falling into the next calendar year, Helal advises businesses operating in the UAE to start today. “The key is to start early – July 2026 might seem far off, but successful implementation can take time,” Helal added.
Prepare your business for the UAE e-invoicing mandate by the July 2026 deadline. Learn about Thomson Reuters’s e-invoicing solutions today.
