UAE e-invoicing and VAT: key dates, ASPs, Peppol and how to get ready
The UAE is moving B2B and B2G invoices onto a Peppol-based e-invoicing system, sent through Accredited Service Providers (ASPs). Big businesses go live on 1 January 2027 and everyone else on 1 July 2027. Here is what changes, what stays the same at your counter, and how MCPOS Cloud gets your invoices to your ASP.
Quick answer
From 1 January 2027, UAE businesses with revenue of AED 50 million or more must send B2B and B2G invoices as structured e-invoices through an Accredited Service Provider (ASP) on the Peppol network, and the tax data goes to the FTA. They must appoint an ASP by 30 October 2026. Everyone else appoints an ASP by 31 March 2027 and goes live on 1 July 2027.
Retail (B2C) sales are out of scope for now, so your counter receipts stay as they are. MCPOS Cloud sends your B2B invoices and credit notes to the ASP you choose, shows the FTA status of each one, and receives your suppliers' e-invoices into an inbox.
United Arab Emirates e-invoicing at a glance
| Tax authority | Federal Tax Authority (FTA); the rules come from the Ministry of Finance |
|---|---|
| VAT rate | 5% standard rate (since 1 January 2018) |
| VAT registration | Mandatory above AED 375,000 of taxable sales a year; voluntary above AED 187,500 |
| E-invoicing model | Peppol "5-corner" model — decentralised, with continuous reporting to the FTA |
| Data standard | PINT AE — the UAE version of the Peppol international invoice |
| Who sends it | Your Accredited Service Provider (ASP). Seller and buyer each need one. |
| In scope | B2B and B2G invoices and credit notes |
| Out of scope (for now) | B2C — sales to consumers, like retail and restaurant bills |
| Legal basis | Ministerial Decisions No. 243 and No. 244 of 2025 |
Timeline and who is covered
| Who | Appoint an ASP by | E-invoicing starts |
|---|---|---|
| Any business (voluntary pilot) | — | From 1 July 2026 |
| Revenue AED 50 million or more | 30 October 2026 (extended from 31 July) | 1 January 2027 |
| Revenue below AED 50 million | 31 March 2027 | 1 July 2027 |
| Government entities (B2G) | 31 March 2027 | 1 October 2027 |
The go-live date for the AED 50 million group stayed at 1 January 2027 even after the ASP deadline moved. Check the Ministry of Finance e-invoicing page for any later change.
UAE VAT in short
The UAE charges VAT at 5%. You must register once your taxable sales pass AED 375,000 a year, and you may register from AED 187,500. Your 15-digit TRN (Tax Registration Number) goes on every tax invoice.
- A tax invoice shows the words "Tax Invoice", your name, address and TRN, the buyer's details (and TRN if registered), a sequential number, the date, each item, the VAT rate and the VAT amount in AED.
- A simplified tax invoice is allowed when the buyer is not VAT-registered, or when a registered buyer's purchase is AED 10,000 or less — this is the usual shop or restaurant bill.
- Most businesses file VAT returns every quarter. Keep your records for at least five years.
E-invoicing does not change the VAT rate or the return. It changes how B2B invoices travel.
How the 5-corner model works
The UAE did not build one central portal like Saudi Arabia. It uses the Peppol network, where accredited providers pass invoices between businesses:
- Corner 1 — you. Your POS or accounting system creates the invoice.
- Corner 2 — your ASP. Checks the data, turns it into a PINT AE e-invoice and sends it on the Peppol network.
- Corner 3 — the buyer's ASP. Receives it and checks it again.
- Corner 4 — the buyer. Gets the invoice straight into their system. No PDF, no retyping.
- Corner 5 — the FTA. The ASPs report the tax data of every invoice to the FTA.
Your ASP tells you if an invoice was accepted or rejected. You do not connect to the FTA yourself.
What changes for a shop, restaurant or trading company
- Walk-in customers (B2C): nothing changes for now. Print your normal receipt.
- Sales to companies (B2B): every invoice and credit note must go through your ASP as an e-invoice. You need the buyer's TRN and correct legal name.
- Your suppliers: their invoices will reach you electronically through your ASP. You need an ASP to receive, not only to send.
- Your data: customer names, TRNs, addresses, item descriptions and units must be clean. An ASP rejects what it cannot map.
Penalties
The Cabinet has set fines for e-invoicing, including:
- AED 5,000 a month for not putting e-invoicing in place, or not appointing an ASP, on time.
- AED 100 per invoice or credit note not issued or not sent on time — up to AED 5,000 a month.
- AED 1,000 a day for telling the FTA late about a system failure.
Businesses in the voluntary pilot are not fined until their own mandatory date.
How to choose an ASP
- It must be on the Ministry of Finance list of Accredited Service Providers.
- It should have an API your POS can call — so invoices go out automatically, not by upload.
- It should handle incoming supplier invoices as well as outgoing ones.
- Ask how it charges — per invoice, per month or per bundle — and whether a sandbox is included for testing.
- Ask where your data is stored and how long it is kept.
How MCPOS Cloud handles UAE e-invoicing Built in — connects to your ASP
MCPOS Cloud is not an ASP — it is the billing system that feeds your ASP. The UAE connector is built into the same e-invoicing engine that files ZATCA invoices in Saudi Arabia. It is part of the Advanced plan.
B2B only, on its own
A sale to a customer with a TRN goes to your ASP. Walk-in retail receipts are marked "not in scope" and are never sent — no extra work at the counter.
Connect the ASP you choose
Pick your ASP in settings, add the API key (stored encrypted), your TIN, TRN and Peppol ID, and test the connection. Sandbox and production are separate.
Live FTA status
Every invoice shows Pending, Accepted or Rejected with the ASP's messages. Status updates come back on their own, and an invoice is never sent twice.
Credit notes too
Sales returns to a business customer become e-credit notes linked to the original invoice.
Supplier e-invoices inbox
E-invoices your suppliers send through the network land in MCPOS. Link them to a supplier and turn them into a draft purchase order.
UAE VAT billing
5% VAT, TRN on every invoice, tax invoice and simplified tax invoice layouts, Arabic and English templates, and a VAT report for your return.
From any till
Bill on Android, iPhone, Windows, macOS, Linux or the web. Offline sales are sent to your ASP as soon as the till syncs.
Safe with your keys
Each business's ASP settings and API key belong to that business only, and the key is stored encrypted.
Getting ready on MCPOS — five steps
- Set up your business. Open MCPOS Cloud on the Advanced plan and add your legal name, address and TRN.
- Appoint your ASP. Choose an accredited provider and get your API details and Peppol ID from them.
- Connect it. My Business → E-Invoicing: choose UAE FTA, pick your ASP, add the key, TIN, TRN and Peppol ID, and run the connection test.
- Clean your customer list. Add the TRN and legal name to every business customer.
- Test, then go live. Send test invoices in your ASP's sandbox or the pilot, then switch to production before your date.
Screen-by-screen help: E-invoicing setup and the e-invoice log in the MCPOS User Guide.
Every ASP has its own API. MCPOS has ready settings for several well-known ASPs, and we confirm and test the link with your chosen ASP while setting you up. Tell us which ASP you are looking at before you sign with them.
United Arab Emirates e-invoicing — frequently asked questions
When does e-invoicing start in the UAE?
A voluntary pilot started on 1 July 2026. Businesses with revenue of AED 50 million or more must appoint an ASP by 30 October 2026 and start on 1 January 2027. Businesses below AED 50 million must appoint an ASP by 31 March 2027 and start on 1 July 2027. Government entities start on 1 October 2027.
Does UAE e-invoicing apply to retail or restaurant bills?
Not for now. B2C sales to consumers are out of scope, so normal counter receipts do not change. E-invoicing covers B2B and B2G invoices and credit notes.
What is an ASP and do I need one?
An Accredited Service Provider is a company approved by the UAE Ministry of Finance to send and receive e-invoices on the Peppol network and report the tax data to the FTA. Every business in scope must appoint one, to send invoices and to receive them from suppliers.
What is PINT AE?
PINT AE is the UAE version of the Peppol International invoice data standard. It defines which fields an e-invoice carries and how. Your ASP turns the invoice data from your POS into a PINT AE e-invoice.
Can my POS send e-invoices straight to the FTA?
No. In the UAE model, e-invoices travel between the seller's and buyer's ASPs, and the ASPs report to the FTA. Your POS connects to your ASP.
What are the penalties for UAE e-invoicing?
Fines include AED 5,000 a month for not implementing e-invoicing or not appointing an ASP on time, AED 100 per invoice or credit note not issued or sent on time (up to AED 5,000 a month), and AED 1,000 a day for late notice of a system failure.
Is MCPOS Cloud an ASP?
No. MCPOS Cloud is POS, billing and accounting software. It sends your B2B invoices and credit notes to the ASP you appoint, shows the status of each one and receives supplier e-invoices from it.
Does MCPOS keep working without internet?
Yes. MCPOS tills bill fully offline. B2B invoices made offline are sent to your ASP as soon as the till syncs, so keep tills online regularly to meet the sending deadline.
Is there a QR code on UAE e-invoices like in Saudi Arabia?
The UAE model is different from Saudi Arabia: there is no central clearance and no ZATCA-style signed QR. The e-invoice is structured data passed between ASPs, with tax data reported to the FTA.
E-invoicing in United Arab Emirates, handled from your till
Start free with billing, stock and accounting. E-invoicing is on the Advanced plan — no setup fee, and we help you through onboarding.
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Facts checked on 29 September 2026. Tax rules change — always confirm with the tax authority or your tax adviser before you act.
E-invoicing in other countries
One e-invoicing engine, one connector per country. See them all on e-invoicing software by country, or jump to one: