e-invoicing (electronic invoicing) is an automated system whereby invoices are generated in a standardized electronic format by suppliers of goods and services, transmitted to both the tax authorities and the buyer, and securely stored in a centralized repository.

In the United Arab Emirates, e-invoicing is scheduled to become mandatory for B2B and B2G transactions by July 2026. 

The UAE has adopted the Decentralized Continuous Transaction Control and Exchange (DCTCE) or five-corner model, using Peppol as the base network to exchange e-invoices between businesses and the Federal Tax Authority (FTA).

The five Peppol corners are as follows:

The seller creates the invoice.

The sender’s access point.

The receiver’s access point.

The buyer receives the invoice.

The FTA access point.

To successfully transmit files through the Peppol network, source data must be exchanged via Access Points, which are Accredited Service Providers (ASPs) approved by the FTA. These ASPs are central to the ecosystem and perform critical functions. They are responsible for transforming a customer’s e-invoicing data into the mandated format, PINT AE, validating all required fields, securely exchanging the invoice within the Peppol network, and transmitting the relevant tax data to the FTA in real time or near real time.

50 fields grouped in 6 categories are required in PINT AE format

Invoice details (9)

Seller details (11)

Buyer details (9)

Document totals (5)

Tax Breakdown (4)

Invoice line (12)

Failure to provide these details will result in files rejection by Peppol network.

Following workflow to be successfully implemented to avoid failure

The seller system pushed data to “Sender’s Access Point” (all 50 fields).

The sender’s Access Point validates the data, converts to PINT AE standard formats and sends it to “Receiver’s Access Point”.

Sender’s Access Point send data through Peppol network to “FTA Access Point” who receives tax data validates and transmits it to the central data

Receiver’s Access Point Receives valid UAE PINT documents and sends them to receiver/buyer system.

Buyer system receives Invoice in their accounting software/ERP.

e-invoicing does not only change the way invoices are sent to buyers and how VAT is reported to the FTA; it also reshapes the existing booking workflow. This transition presents an opportunity for businesses to improve and automate their related processes.

e-invoicing will not only transform VAT reporting to the FTA but will also have a significant impact on business processes and data availability.

Key Benefits:

Cost Reduction – Savings through digitalization of invoices and secure transmission to buyers via access points.

Faster Payments – Improved cash flow and reduced invoice disputes.

Operational Efficiency – Enhanced compliance, minimized fraud, and reduced risk of regulatory penalties.

Despite the numerous benefits, businesses embarking on the e-invoicing journey in the UAE must anticipate several initial challenges and critical considerations:

Data Readiness – Availability of master and transactional data from source systems. Data review and cleansing are essential initial steps.

IT Infrastructure – Establishing a robust system to enable the automatic and continuous flow of data.

System Integration – Developing upstream source system integrations with Peppol via approved access points.

Digital Signatures – Implementing digital invoice signatures throughout the invoice lifecycle.

System Enhancements – Investing in modifications or enhancements to source systems to ensure compliance with e-invoicing requirements.

Operational Readiness – Updating standard operating procedures (SOPs) and providing staff training.

For successful and timely e-invoicing implementation, the key is prepared early as possible as source changes may be needed and data needs to be cleaned as well.

Below are high level steps to assess business readiness for e-invoicing:

Functional Assessment:

Review of ‘As-Is’ process of existing Accounts Receivable (AR) and Accounts Payable (AP) invoicing workflows within the organization.

Business impact analysis (BIA) to systematically identify and characterize the potential consequences in terms of financial losses, operational disruption, legal/compliance and reputational damage.

Data Requirement Analysis is to meticulously identify all mandatory and critical data elements necessitated by UAE e-invoicing regulations and to comprehensively assess the accuracy, completeness, and structured nature of existing data sources within the organization.

Mitigation & Functional Action Plan is to propose actionable steps for comprehensively re-engineering business processes, developing new workflows, and adequately preparing personnel for the impending e-invoicing mandate.

IT Gap Assessment

System readiness review to comply with UAE Peppol mandate. Identify the gaps.

Integration / API development and testing of source systems with ASP.

Regression testing to ensure all other business processes have not been impacted.

Confirm data compliance (data security, data residency, compliance monitoring)

Early planning, preparation and testing is key for successful e-invoicing implementation.

At HAL Consulting with our approved ASP partner, we help business to conduct Readiness Assessment.

Feel free to book free consultation with our expert team to plan for the UAE e-invoicing Readiness Assessment.