With the first e-invoicing deadline approaching in less than a month, the United Arab Emirates’ Federal Tax Authority (FTA) is intensifying efforts to ensure businesses transition promptly from preparation to implementation. The FTA convened an awareness session yesterday, bringing together accredited service providers (ASPs), private companies, and government entities to clarify legal requirements and guide businesses through the onboarding process on the Emara Tax platform.
Under the new regulations, companies with annual revenues of AED 50 million or more must appoint an ASP by October 30, 2026, and begin issuing electronic invoices by January 1, 2027. Smaller enterprises have until March 31, 2027, to designate an accredited provider, with a mandatory go-live date of July 1, 2027. Government entities share the smaller businesses’ deadline for provider appointment but are required to begin e-invoicing from October 1, 2027.
FTA Director General Abdelaziz Mohammed Al Mulla emphasized that the focus is shifting from rule dissemination to practical execution and onboarding. “We are now at the transition phase,” he said, explaining that the authority aims to assist businesses in moving from understanding requirements to actively preparing for compliance. The FTA currently recognizes over 50 accredited providers, with several more pending approval.
Al Mulla noted that businesses have posed numerous practical questions during the rollout, including the definition of electronic invoices, selection criteria for ASPs, and the specific steps needed for onboarding. Penalties for non-compliance are significant: companies failing to appoint an ASP by the deadline face fines of AED 5,000 per month or part thereof; failure to issue and transmit invoices on time incurs AED 100 per invoice up to a monthly cap of AED 5,000; and there is a AED 1,000 penalty for failure to notify the FTA of system failures.
Regarding businesses operating in free zones, Al Mulla was clear that all must comply with registration and e-invoicing mandates, with no exemptions from penalties. The FTA is coordinating with free zone authorities to ensure adherence.
During the session, ASP representatives addressed common concerns about how the e-invoicing system functions and associated costs. Murtaza Furintwewala, cofounder of Marmin Technologies, described ASPs as authorized intermediaries facilitating the integration between companies, the FTA, and buyers. He explained that clients have the option to use either a web application or integrate e-invoicing capabilities into their existing accounting software, with invoices automatically marked as approved or rejected by the system. For small to medium-sized businesses, Furintwewala estimated annual ASP service costs at approximately AED 2,500 to 3,000 for companies issuing 500 to 2,000 invoices.
He also warned that traditional electronic documents such as PDFs and existing accounting systems will not meet VAT compliance requirements under the new regulations; only invoices generated through the authorized e-invoicing network will be valid.
Vikas Panchal, general manager for the Middle East and North Africa at Tally Solutions, said that his company currently serves nearly 65,000 businesses in the UAE and has integrated ASP selection directly within its software. He noted that Tally users will benefit from unlimited invoicing capabilities at no extra charge. Panchal further reassured businesses regarding penalties by highlighting that failed invoice uploads are automatically flagged by the system, reducing the risk of inadvertent non-compliance.
As the October deadline nears, the FTA is urging companies not to delay appointment of ASPs or onboarding, emphasizing that early compliance will prevent costly penalties and ensure a smoother transition into the country’s new mandatory e-invoicing framework.