Today's Edition
SHAMA AHMAD (ABU DHABI)
The Ministry of Finance of the United Arab Emirates has announced plans to make e-invoicing mandatory by July 1, 2026, as part of its commitment to modernise and digitise the economy.
What is e-invoicing?
It is a structured electronic document containing invoice data exchanged between a supplier and a buyer, and it is reported electronically to the UAE Federal Tax Authority. It is important to understand that invoice formats such as pdf, word document, images, scanned copies and emails are not considered as a e-invoices.
According to the ministry’s website, the system will enhance security by reducing the risk of fraud and unauthorised access through encrypted transactions and secure data exchange protocols.
In addition, the government will have access to the relevant data in near real-time, which will help provide insights to policymakers for the purpose of identifying areas and sectors that need government support.
The digital system will reduce usage of paper, which is in line with the UAE’s Green Agenda of 2023 to make the country’s economy more environmentally friendly.
Alicia Dauth from Chartered Environmentalist, Blue Matters, told Aletihad: “Electronic invoicing seems like a small action, but it will offer many sustainable environmental benefits. It will reduce various waste streams from being generated such as energy and water.
Dauth added that electronic invoicing will reduce the environmental impact by removing reliance on paper and ink, Less fuel to transport materials also constitutes a reduction in carbon emissions.
“Electronic invoicing is a practical step in achieving sustainable and energy efficient practices,” she added.
Speaking to Aletihad, Farah abu Sade, from AESG international consultancy, said: “This digital shift not only supports sustainability goals but also improves a company’s environmental, social and governance (ESG) performance.”
She added: “E-invoicing streamlines operations, reducing errors and inefficiencies, which further optimises resource use and cuts business expenses.”
