Implementation of the Electronic Billing System by the UAE Ministry of Finance

Dear Clients,

The Ministry of Finance of the United Arab Emirates will proceed to implement, starting in 2026, a new electronic billing system applicable to transactions between businesses established in the country. In accordance with this regulation, it will be mandatory to issue all invoices using an electronic billing software that complies with the international OpenPeppol format. This software must be integrated with the Federal Tax Authority's (FTA) central electronic billing system through one of the service providers accredited by the Ministry.

The rollout of the new system will be carried out gradually, beginning with a voluntary pilot program starting on July 1, 2026, and subsequently becoming mandatory in 2027. This measure will apply to all business-to-business (B2B) and business-to-government (B2G) transactions, while those conducted with private individuals are excluded. Both involved parties, the seller and the buyer, must have this system in place.

The applicable implementation deadlines are detailed below:

• Companies with revenues equal to or exceeding AED 50,000,000 must have the new software configured by July 31, 2026, beginning its effective use no later than January 1, 2027.

• Companies with revenues below AED 50,000,000 will have until March 31, 2027, to configure the software and must begin its use before July 1 of the same year.

• Companies that wish to participate voluntarily in the pilot program because they already have accredited software may begin implementation from July 1, 2026.

All affected companies are advised to begin reviewing their current billing systems and proceed with their adaptation in accordance with the requirements established by the Ministry of Finance, including integration with duly accredited providers listed by the competent authority.

This initiative aims to promote a more transparent and digitized economy in the United Arab Emirates, ensuring regulatory compliance and contributing to the reduction of the undeclared economy.

We remain at your entire disposal for any inquiries you may have in this regard.

Sincerely,

The RLD Team