Businesses in the UAE have been granted additional time to prepare for the mandatory implementation of Electronic Invoicing (E-Invoicing), with the deadline for selecting an Approved Service Provider (ASP) extended to October 30, 2026; the previous deadline was July 1, 2026.

The mandatory implementation of this system will begin on January 1, 2027, initially covering companies with a turnover exceeding 50 million dirhams. In this scheme, traditional and PDF invoices will be converted into structured electronic invoices that will be exchanged with the UAE tax authority through Approved Service Providers under the 'Five-Corner Model'.

This extension provides companies with the opportunity to make the necessary technical and operational changes, as many businesses, especially small and medium-sized enterprises, are not yet fully prepared.

The most important actions that companies need to take include:

• Selecting an Approved Service Provider (ASP)

• Reviewing and upgrading ERP and accounting systems

• Assessing legal and technical gaps

• Testing invoicing processes

• Updating VAT processes and tax reporting

• Training financial and operational teams

The UAE's goal in implementing this project is to increase tax transparency, reduce human errors, and enable faster monitoring of transactions, with the system initially applied to B2B and B2G transactions.

Source: Gulf News