Regulatory updates - United Arab Emirates

As previously reported by Pagero, the UAE has proposed adopting a 5-corner model. In the model, accredited service providers will play an important part, as they will be responsible for validating, exchanging and reporting the invoice data to the tax authority. Only certified service providers will be allowed to participate in the exchange, which makes the accreditation an essential part of engaging in the invoice exchange. 

What do accreditation requirements imply?

The accreditation requirements are comprehensive, but among other criteria, service providers need to:

• Successfully conduct pre-approval testing, production trail run, pre-approval certification and tax data reporting testing;
• Be an active Peppol-certified service provider;
• Have documented evidence of operating as a service provider for at least two years;
• Fulfill insurance requirements in the UAE;
• Have ISO certifications: ISO/IEC 27001 and ISO 22301.

An exhaustive list of the requirements can be found on the Ministry of Finance's website.

Pagero’s next steps

Pagero is actively involved in securing accreditation, underscoring our dedication to fulfilling our customers' needs and playing a crucial role in the successful implementation of the 5-corner model in the UAE.

The UAE MOF of Finance has issued an e-invoicing consultation paper open for feedback from all interested stakeholders until February 27, 2025. This input will be crucial in shaping the future of e-invoicing in the UAE.

The documentation clarifies the path forward, confirming the use of the Peppol network and the Peppol (PINT AE) format in a 5 Corner model approach.

Stay tuned for more updates on this development!

UAE has announced the issuance of Federal Decree-Law No. 17 of 2024, which amends key provisions of Federal Decree-Law No. 28 of 2022  of tax procedures. Additionally, Federal Decree-Law No. 16 of 2024 introduces amendments to some provisions of Federal Decree-Law No. 8 of 2017 related to Value Added Tax (VAT).

Below is the key summary of the changes.

Definitions

Several definitions have been added or revised to support the implementation of e-invoicing, now including specific terms relevant to the e-invoicing system.

Input VAT recovery

Article 55 has been amended to require taxable persons to retain tax invoices compliant with the Electronic Invoicing System as a condition for input VAT recovery. This requirement applies to all invoices issued or required to be issued as electronic invoices.

Tax invoices and credit notes

Articles 65 and 70 have been amended to specify that taxable persons subject to e-invoicing requirements must issue invoices, credit notes, and other related electronic documents in accordance with system standards.

Penalties for non-compliance

Article 76 has been amended to include penalties for failing to issue tax invoices and credit notes within the specified timelines.