MoF issues Ministerial Decisions on Electronic Invoicing System

The Ministry of Finance (MoF) announced the issuance of two Ministerial Decisions clarifying the scope of obligations and the timelines for implementing the Electronic Invoicing System in the UAE. These decisions represent fundamental steps in the UAE's digital transformation journey and in enhancing efficiency, transparency, and compliance in business transactions across the country.

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The first decision on the scope of the Electronic Invoicing System clarifies that the system applies to all persons conducting business in the UAE in relation to all business-to-business (B2B) and business-to-government (B2G) transactions, except in cases where specific exclusions have been identified. Notwithstanding such exclusions, businesses may voluntarily issue, send, share, exchange, and report electronic invoices and electronic credit notes.

In accordance with the decision, and to ensure smooth implementation, issuers and recipients of invoices are required to appoint an Accredited Service Provider (ASP), and the Ministry will publish a list of accredited service providers in due course.

Under the new requirements, an electronic invoice must be issued and transmitted for every business transaction. An electronic credit note must also be issued in cases where a transaction is cancelled, the agreed consideration is reduced, a refund is made in full or in part, or where an administrative or numerical error has occurred. Recipients are required to process all electronic invoices and electronic credit notes through the Electronic Invoicing System.