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Federal Tax Authority

Policy & Legal Updates
Source: Gulf News

UAE Sets E-Invoicing Deadlines and Penalties for Businesses and Government Entities

The UAE has established compliance timelines for its mandatory electronic invoicing system, requiring large firms to appoint an Accredited Service Provider by October 30, 2026. Entities failing to appoint an approved provider within the statutory deadlines face monthly administrative penalties of Dh5,000. Phased mandatory go-live dates run from January 1, 2027 through October 1, 2027.

Policy & Legal Updates
Source: Emirates News Agency (WAM)

UAE Sets Phased E-Invoicing Deadlines Based on Business Revenue

The UAE Federal Tax Authority has announced phased compliance deadlines for its mandatory e-invoicing system based on annual revenue thresholds. Businesses earning AED 50 million or more must implement the system by January 1, 2027, while those below the threshold have until July 1, 2027. Entities are required to engage accredited service providers ahead of their respective operational deadlines.

Policy & Legal Updates
Source: Federal Tax Authority

UAE Federal Tax Authority Issues Decision on Input Tax Recovery for Employee Expenses

The UAE Federal Tax Authority published Decision No. 17 of 2026 setting conditions for recovering input tax on employee expenses. Entities may recover VAT on goods or services provided to employees under contractual obligations or documented policies. The guidance requires formal documentation and approval mechanisms ahead of VAT Executive Regulation amendments taking effect October 1, 2026.

Policy & Legal Updates
Source: Zawya

UAE Tax Authority Urges Businesses to Prepare for E-Invoicing Ahead of 2027

The UAE Federal Tax Authority has called on businesses to utilise the remaining time to prepare for mandatory e-invoicing ahead of its phased rollout starting January 1, 2027. The announcement was made during an ICAI Dubai Chapter conference attended by over 500 professionals. Officials confirmed the programme has transitioned to its pilot phase, operating under the decentralized Five-Corner Model via accredited service providers.

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