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

The UAE Federal Tax Authority (FTA) has urged companies to prepare for the country's upcoming mandatory e-invoicing system, which is scheduled to begin phased rollout on January 1, 2027. Speaking at a conference titled “The Next Tax Compliance Chapter in Corporate Tax Returns, Transfer Pricing and E-Invoicing” organized by the Dubai Chapter of the Institute of Chartered Accountants of India (ICAI), tax officials highlighted the importance of early readiness, according to Zawya.

Dr. Zahra Al Dahmani, Director of the Taxpayer Services Department at the FTA, stated that the UAE has adopted a decentralized continuous transaction control framework known as the Five-Corner Model. Under this framework, companies will exchange structured digital invoices through accredited service providers using international standards, with real-time reporting to the tax authority.

Al Dahmani noted that the project has transitioned from planning into its pilot phase. Participating businesses can currently onboard accredited service providers via the FTA's EmaraTax platform and begin testing electronic invoice issuance and exchange.

Hisham Al Taher, Board Member and Chairman of the Tax Committee and Media Affairs at the Emirates Association for Accountants & Auditors, described e-invoicing as an enterprise-wide transformation shifting invoices from static documents to structured data. ICAI Dubai Chapter Chairman CA Rishi Chawla added that the framework positions the UAE as a digital tax benchmark. Figures cited at the event indicated that the UAE collected more than Dh46 billion in VAT and excise tax in 2025, up 15 percent from Dh41 billion in 2024.