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The Federal Tax Authority has called on all persons subject to the e-Invoicing System to comply with legal requirements and prescribed timelines for its phased rollout. According to the FTA, entities with annual revenues of AED 50 million or more must appoint an accredited service provider no later than October 30, 2026 and implement the system by January 1, 2027. Those with revenues below that threshold have until March 31, 2027 to appoint a provider and July 1, 2027 to begin issuing electronic invoices while government entities follow on October 1, 2027.
An administrative penalty of AED 5,000 applies for each month or part of a month of delay in appointing the provider or implementing the system, the authority stated. Additional fines include AED 100 for each electronic invoice or credit note not issued and transmitted through the system on time, up to a maximum of AED 5,000 per calendar month. Cabinet Decision No. 106 of 2025 details these and other violations to support enforcement of the Ministerial Decisions governing the programme.
Director General Abdulaziz Mohammed Al Mulla highlighted the system’s role during a joint awareness meeting for accredited providers and affected businesses held on September 29, 2026. The FTA official described how e-invoicing enhances voluntary tax compliance through secure and effective digital mechanisms that simplify, standardise and automate processes. The authority has scheduled further in-person and virtual sessions across the country to facilitate a smooth transition for all stakeholders.
FTA figures show that awareness activities in the first half of 2026 drew nearly 34,000 participants, marking a 23.3 percent increase over the prior comparable period. These events focus on explaining technical requirements, the selection of accredited providers and the benefits of early adoption to reduce risks of non-compliance. The authority emphasised that preparations should not be left until the final days before each deadline.
The e-Invoicing System operates on a decentralised continuous transaction control model that enables efficient data exchange between businesses while feeding information to the tax administration. Legislation such as Ministerial Decision No. 244 of 2025 as amended sets the framework, including provisions for voluntary early implementation from July 2026 onward. Flexible mechanisms have been introduced to maintain business continuity during the shift to fully electronic documentation.
The FTA continues to update guidance and host targeted briefings as the first mandatory phase approaches for the largest taxpayers. Businesses are advised to review their revenue thresholds and engage accredited providers promptly to align with the timelines. This digital initiative forms part of the UAE’s wider efforts to modernise tax procedures and curb evasion through automated controls.
