The UAE government has taken steps to move towards a fully
digitized tax system by adopting E-Invoices. The E-invoicing
process will be mandatory for all business to business (B2B) and
business to government (B2G) transactions, regardless of the VAT
registration status of the entities involved.
E-INVOICING
E-invoice means an electronic invoice that is generated in a
particular format, and is directly linked to a central database.
The invoice data will be issued and exchanged electronically
between a supplier and buyer through an Accredited Service
Provider. The UAE government is working towards implementing
E-invoicing throughout the country with a view to digitize the
invoicing systems and execute real time tax reporting to the UAE
Federal Tax Authority (FTA). This process seeks to simplify,
standardize and automate the exchange of invoices.