The UAE Federal Tax Authority (FTA) has warned businesses subject to the rules with annual revenue of AED 50 million or more that they must appoint an accredited e-invoicing service provider by Friday, October 30, 2026, or face an administrative penalty of AED 5,000 for each month of delay.

The deadline comes ahead of the mandatory rollout of the UAE’s e-invoicing system on January 1, 2027, for the first group of businesses.

The FTA urged companies to select a service provider, sign a contract and prepare their technical infrastructure before the statutory deadline.

Deadlines for businesses subject to the rules

Under the regulations, the system will be introduced in phases based on businesses’ annual revenue.

Businesses subject to the rules with annual revenue of AED 50 million or more must appoint an accredited service provider by October 30, 2026, and fully implement the system by January 1, 2027.

Businesses subject to the rules with annual revenue below AED 50 million have more time. They must appoint a service provider by March 31, 2027, and connect to the system by July 1, 2027.

How will the AED 5,000 penalty be applied?

Under UAE Cabinet Decision No. 106 of 2025, delays in implementing the system or failing to appoint an accredited service provider by the statutory deadline will incur a penalty of AED 5,000 for each month or part of a month of delay.

The penalty applies to businesses required to implement the system under the regulations.

What steps must companies take?

The FTA said companies must select an accredited service provider, sign the relevant contract, complete the technical integration of their invoicing systems and carry out the required procedures through the EmaraTax platform.

Under the new system, invoices must be issued and exchanged as structured electronic data. Standard PDF files, images and invoices sent by email do not, on their own, qualify as approved electronic invoices under the system.

The initiative aims to simplify and automate invoicing, enhance transparency and improve compliance with tax regulations in the UAE.