Businesses in the UAE with annual revenues of Dh50 million or more must appoint an Accredited Service Provider by October 30, 2026, and implement the e-Invoicing System by January 1, 2027, the Federal Tax Authority (FTA) has announced.
The authority called on all persons subject to the system to meet the prescribed deadlines or risk administrative penalties.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Under the legislation, a penalty of Dh5,000 is imposed for each month, or part of a month, of delay in implementing the system. This includes failure to appoint an Accredited Service Provider on time. The FTA said the penalty is intended to promote compliance as part of the UAE’s digital transformation efforts, in line with the highest international standards.
Businesses with annual revenues below Dh50 million have a later timeline. They must appoint an Accredited Service Provider by March 31, 2027, and implement the system by July 1, 2027.
The FTA urged companies to prepare early and complete the necessary procedures well ahead of the deadlines. It said several steps are required such as selecting an appropriate Accredited Service Provider; contracting and integrating with that provider; and following the correct procedures on EmaraTax, the FTA’s digital tax services platform.
The authority said the system simplifies, standardises and automates invoicing processes, offering benefits to stakeholders.
Pilot phase and outreach
The FTA said the system’s readiness was tested during a pilot phase before mandatory implementation. The pilot assessed the efficiency of integration procedures, the user experience and the readiness of the relevant parties. The authority added that it is emphasising phased implementation and continuous communication with government and private-sector stakeholders, so that requirements are met before each phase’s deadline.
It also said flexible implementation mechanisms and streamlined procedures have been adopted to support business continuity.
The FTA continues to hold in-person awareness events across the UAE, along with virtual sessions. These cover which categories must implement the system, the implementation mechanisms and conditions, how to connect to the system, and activation through EmaraTax.
The FTA urged businesses to review the requirements, procedures, legislation and guidance on its website.