The Federal Tax Authority (FTA) has announced new requirements for businesses in the United Arab Emirates (UAE). Companies with an annual revenue of AED 50 million or more are required to appoint an Accredited Service Provider by October 30, 2026, and implement the electronic invoicing system by January 1, 2027.
The Authority urged all entities subject to this system to adhere to the established deadlines to avoid administrative fines. According to legislation, a fine of AED 5,000 is stipulated for each month or part thereof of delay in implementing the system, including the untimely appointment of an Accredited Service Provider.
The FTA emphasized that this fine is aimed at encouraging compliance within the UAE's digital transformation efforts, aligning with the highest international standards.
A later schedule has been set for businesses with an annual revenue below AED 50 million: the appointment of an Accredited Service Provider must occur before March 31, 2027, and system implementation must be completed by July 1, 2027.
The FTA strongly recommended that companies prepare for and complete the necessary procedures well in advance. Required steps include selecting a suitable Accredited Service Provider, concluding a contract, integrating with this provider, and following the correct procedures on the FTA's digital tax services platform called EmaraTax.
The Authority stated that this system simplifies, standardizes, and automates invoicing processes, benefiting all stakeholders. The system's readiness was previously tested during a pilot phase that assessed the effectiveness of integration procedures, user experience, and the readiness of relevant parties.
Furthermore, the FTA noted that the focus is on phased implementation and continuous engagement with public and private stakeholders to ensure requirements are met before the deadline of each phase. Flexible implementation mechanisms and optimized procedures have been adopted to support business continuity.
The FTA continues to conduct awareness activities both personally and virtually across the UAE. These sessions cover categories that must implement the system, the mechanisms and conditions for implementation, as well as how to connect to and activate the system via EmaraTax. Businesses are advised to review the requirements, procedures, legislation, and guidelines on the official FTA website.