What to know about e-invoicing in UAE

The UAE's upcoming introduction of electronic invoicing (e-in-voicing) is not exactly groundbreaking news as a lot of countries have gone through a similar mandate in some shape or form.

- BY NASHEEDA

But compliance with it may very well be for the businesses that are impacted by it. Saudi Arabia commenced e-invoicing in December 2021 and is in its Phase 2, which is adding smaller and smaller businesses with each wave.

While e-invoicing is a popular tool for governments, the approach varies. One key difference is in the tax authority's role — i.e., whether the tax authority is just a passive recipient or an active validator of invoices. In Saudi Arabia, B2B and B2G e-invoices have to be validated by the Zakat, Tax and Customs Authority (ZATCA) before it can be shared with the customer.