UAE E-Invoicing 2027: What Small Businesses Must Do (and When)

06 Nov 2026 · by Super Admin

If your business has revenue under AED 50 million, e-invoicing becomes mandatory for you on 1 July 2027. Before that, by 31 March 2027, you must appoint an Accredited Service Provider (ASP). That sounds far away, but changing how you invoice takes time. Here is what is changing, what it means for a small business, and a simple checklist to get ready.

What is changing?

Today, most UAE businesses create an invoice as a PDF or on paper and send it by email or WhatsApp. Under the new system, B2B and B2G invoices will be sent as structured electronic data, not as a PDF. The invoice travels through approved providers to your customer, and the invoice data is reported to the Federal Tax Authority (FTA) at the same time.

The UAE is using a Peppol-based model, and invoices follow a format called PINT AE. You do not need to understand the technical details. What matters is that your invoices must come from a system that can produce this format and connect to an ASP.

Key dates

DateWhat happens
1 July 2026Pilot starts; any business can join voluntarily
30 October 2026Businesses with revenue of AED 50m or more must appoint an ASP
1 January 2027E-invoicing mandatory for revenue of AED 50m or more
31 March 2027Businesses with revenue under AED 50m must appoint an ASP
1 July 2027E-invoicing mandatory for revenue under AED 50m
1 October 2027Mandatory for government entities

Who must comply?

  • Businesses doing B2B (selling to other businesses) or B2G (selling to government) in the UAE.
  • Non-resident businesses that must issue UAE VAT invoices.
  • Even some businesses that are not VAT-registered may need to issue e-invoices and get a Tax Identification Number (TIN).

Sales to individual consumers (B2C) are not in scope for now.

What is an Accredited Service Provider (ASP)?

An ASP is a company approved by the UAE authorities to send your e-invoices to your customers and report them to the FTA. Think of it as the post office for your invoices. You choose an ASP and connect your invoicing software to it.

What are the penalties?

Once your deadline arrives, fines under Cabinet Decision No. 106 of 2025 include:

  • AED 5,000 per month if you have not set up e-invoicing or appointed an ASP on time.
  • AED 100 per invoice issued or sent late, up to AED 5,000 per month (the same applies to credit notes).
  • AED 1,000 per day for late notice to the FTA of a system failure.

You must also keep e-invoices for 5 years.

Your 5-step checklist

  1. Check your phase. Is your yearly revenue under AED 50 million? Then your dates are 31 March 2027 (ASP) and 1 July 2027 (go live).
  2. Get your TIN. If you do not already have a Tax Identification Number, apply for one.
  3. Clean up your customer data. Make sure every business customer has a correct legal name, address and TRN.
  4. Move to invoicing software. If you still use Excel, Word or paper, switch now so your invoices are already structured when the deadline comes.
  5. Appoint an ASP before 31 March 2027 and connect it to your software. Test it before 1 July 2027.

How OrbeeCash helps

OrbeeCash is accounting and invoicing software built for UAE small businesses. Every invoice already includes your TRN and 5% VAT, your customer records are kept in one place, and your VAT summary helps you prepare your FTA return. Getting your invoicing into one clean system today is the most important first step toward e-invoicing.

Start free with OrbeeCash →

Frequently asked questions

Do I need e-invoicing if I only sell to individual customers?

Not for now. B2C sales are currently out of scope.

Can I keep sending PDF invoices?

For B2B and B2G sales, no: after your go-live date, invoices must be sent as structured e-invoices through an ASP.

I am not VAT-registered. Does this apply to me?

Possibly. Some non-VAT-registered businesses must still issue e-invoices and get a TIN. Check with the FTA or your tax adviser.

When should I start?

Now. Choosing software, cleaning data and appointing an ASP all take time, and the ASP deadline (31 March 2027) comes three months before go-live.

This article is general information, not tax advice. Always confirm details with the FTA or your tax adviser. Source: VATit UAE e-invoicing guide, checked 5 November 2026.