In a significant legislative move, the UAE Ministry of Finance (MoF) has announced amendments to Federal Decree-Law No. 28 of 2022, introducing key changes to tax procedures for 2024.
The latest update, detailed under Federal Decree-Law No. 17 of 2024, includes the implementation of an eInvoicing system, representing a substantial stride toward digital transformation and alignment with global tax compliance standards. The revised law grants the MoF authority to outline eInvoicing requirements and implementation schedules for businesses across the UAE.
The eInvoicing system, set to launch in phases, is designed to streamline tax reporting by enabling secure, immediate exchange of invoices between businesses and the Federal Tax Authority (FTA) through Accredited Service Providers (ASPs). This standardized approach simplifies tax filing, ensuring accuracy, transparency, and swift transactions, benefiting both the private sector and governmental entities.
According to past case studies and regional experts, digital invoicing significantly reduces processing times and improves record-keeping. The UAE’s decentralized, five-corner model of eInvoicing, based on the international OpenPeppol standard, will facilitate compliance while ensuring robust data security, reflecting best practices observed in economies like Europe and Singapore.
In addition to procedural amendments, Federal Decree-Law No. 16 of 2024 introduces essential VAT-related updates. The new provisions broaden the definitions of “tax invoice” and “tax credit note” to encompass electronic formats. As part of this shift, businesses will be required to archive digital invoices to meet record-keeping standards, a move expected to enhance transparency and accountability across various sectors.
These digital-driven changes align with the UAE’s broader economic strategy, emphasizing innovation in governance. As the Ministry of Finance rolls out further directives on eInvoicing compliance, companies are advised to assess and update their invoicing systems to ensure full alignment with the new tax requirements.
