Understanding the Fundamentals of UAE e-Invoicing and Framework Models

Introduction

The UAE Government has initiated a new digital tax system by introducing the e-Invoicing framework for business transactions, replacing all traditional invoicing practices and paperwork. Starting July 2026, e-Invoicing will become mandatory for Business-to-Business (B2B) and Business-to-Government (B2G) transactions. To streamline invoice transmission and data security, the Peppol 5-corner model has been included with the upcoming invoicing system. In this blog, you will understand the e-Invoice formats, fields, frameworks, and implementation process for businesses.

What is e-Invoicing?

An e-Invoice is an electronically generated invoice exchanged between the supplier and the buyer in a structured digital format. The Federal Tax Authority (FTA) securely stores and ensures compliance with the UAE’s law regulations.

For any valid e-Invoice, the following requirements must be met

• Issued in a digital format, such as XML or JSON

• Approved by an Accredited Service Provider (ASP) 

• Structured using a standard format like UBL or PINT

• Real-time submission to the FTA

Is there any standard format for e-invoices?

In accordance with Phase 2 of the E-invoicing model, every e-invoice must follow strict formatting standards aligned with Digital Tax Stamp and Real-time reporting. The FTA urges all businesses to follow the format with the FTA-approved software.

1. Digital Format

• Invoices can be created, transmitted, and stored in a digital or electronic format

• Applicable for file formats like XML and JSON

• Reduces both manual and digital errors

2. Structured Data Standards

Structured data organizes the e-Invoice information into a machine-readable format, which FTA automatically stores and processes for invoice validation.

a. UBL (Universal Business Language)

• UBL, developed by OASIS, is a widely used standard for e-Invoice

• Includes details like supplier, buyer, VAT, and total amount

• Facilitates automated processing and real-time invoice transmission

b. PINT (Peppol Invoice Standard)

• PINT is a part of Peppol framework used for the e-Invoicing standard

• The UAE Government does not currently mandate the use of Peppol

c. Mandated fields in e-Invoices

The FTA mandates that all businesses must include specific fields in their e-invoice format, in compliance with Phase 2 regulations as follows

• Titled with “Tax Invoice”  

• Supplier Details (Name, Address & TRN) 

• Customer Details (Name, Address & TRN) 

• Invoice Date & Number 

• Description of Goods/Services 

• Item code, quantity, prices 

• Discount & Gross amount  

• VAT rate (e.g., 5%, 0% & exempt) 

• Total VAT amount  

• Net Amount 

How does the e-Invoicing framework work?

To enhance e-Invoice validation and transmission, the UAE government has built a system based on the Peppol "5-corner" model. It involves the invoice process from the sender (supplier) to the receiver (buyer) and even transmits the key details to the FTA’s Tax platform.

• Supplier: Creates an e-Invoice with the buyer's details (like Name, TRN, Gross Amount)

• Sender SP: Validate the buyer details and transmit via OpenPeppol directory

• Buyer SP: Collects, formats, and delivers to the buyer’s software

• Buyer: Receives and integrates the invoice

• FTA: UAE-accredited SPs send the key details to the central tax platform

Steps to Implement E-Invoicing for Businesses

• Ensure your billing software supports e-Invoicing formats

• Upgrade your ERP or accounting to the latest billing regulations

• Collaborate with a certified ASP for peppol network

• Integrate your business transactions with the ASP

• Update your team with the FTA’s decision 

Conclusion:

Invoicing is more than just a financial receipt – it is a key component of your business growth. The Upcoming e-Invoicing would offers an efficient, transparent, and faster process for both suppliers and buyers. In the UAE, the government mandates that all businesses implement Accredited Service Providers (SPs) and use a standardized format for invoice transmission. Failure to comply with Federal Tax Authority (FTA) regulations can significantly impact your financial operations and hinder growth.

If you're looking for an Accredited SP in the UAE, PNPC Global can help you organize your tax records and file your returns efficiently, ensuring compliance and transparency.