By the middle of 2026, the rules of the business game will change in the UAE. Electronic billing will become mandatory for all transactions between companies and government agencies. What previously seemed like an option will turn into a requirement, without which it will become impossible to work.
How the System will Work
Regular paper invoices and pdf documents are becoming a thing of the past. It is replaced by a structured XML file. Such an account is generated in the supplier’s system, is checked by an accredited service provider (ASP), and then immediately goes to the buyer and the Federal Tax Administration (FTA). The basis of the process is a pentagonal model: supplier, supplier’s ASP, buyer’s ASP, buyer and tax authority.
Key Terms
The same words are constantly being used in the new order: invoicing, invoices, electronic invoice, compliance, VAT, data, ASP, FTA, peppol, providers, corner model. For businesses, they become part of their daily work. Each invoice must contain the required fields, be digitally signed, and be stored for at least seven years.
Stages of Implementation
- At the end of 2024, service providers will be accredited and a national data directory will be created.
The law is expected to be published in the spring of 2025 and pilot projects are expected to be launched for the largest taxpayers.
The first stage will start in July 2026: all B2B and B2G accounts will have to be transferred only through the e-invoicing system.
Later, the rules will also affect the B2C segment.
What is behind the reform
The new system creates transparency and reduces the likelihood of errors. The Corner model ensures that the data passes through the ASP and is captured in the FTA. This helps to combat VAT leaks and speeds up tax reporting. For businesses, this means less manual work, faster payments, and more control over data movement. Many companies are already reviewing their IT infrastructure and looking into modern tools, such as Anchorcloud solutions in Dubai, to ensure they can comply with upcoming requirements while keeping operations efficient.
Possible Difficulties
Reform will require effort. ERP systems will have to be adapted, master data cleaned, and electronic signatures implemented. Mistakes will be costly: fines of up to 20 000 dirhams are provided for repeated violations of the storage rules.
The transition to e-invoicing is not just a technical upgrade. This is a new standard of work that changes the approach to taxes and reporting. Those companies that start preparing in advance will not only be able to avoid problems in 2026, but also turn the changes into a competitive advantage by speeding up processes, reducing costs and making tax management easier.
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