E-invoicing compliance and regulatory updates - United Arab Emirates (UAE)

Electronic Invoicing United Arab Emirates (UAE)

The United Arab Emirates (UAE) operates on a post-audit model.

The use of electronic invoicing is allowed but not mandatory in the UAE according to Federal Law No. (1) of 2006 On Electronic Commerce and Transactions. This law states that there are essential properties that each electronic invoice in the UAE should demonstrate. For example, an organisation should maintain the electronic document in the same format as it was created, sent, or received. In other words, the organisation should ensure that the invoice content cannot be altered.

Other properties include that:

  • Time stamps be applied on each e-invoice to guarantee that the document has remained unchanged since its creation, and is available to be displayed online or printed.
  • Electronic invoices be available in a readable format.
  • There is secured online access for e-invoices to be displayed and available to download as PDFs.
  • Authenticity of the origin needs to be guaranteed. For each electronic invoice, there is an original file available to download anytime.

Certified electronic signature is recommended as a method to identify issuer, authenticate, and verify data electronically. But it is not required.


Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Electronic Invoicing United Arab Emirates (UAE)

The United Arab Emirates (UAE) operates on a post-audit model.

The use of electronic invoicing is allowed but not mandatory in the UAE according to Federal Law No. (1) of 2006 On Electronic Commerce and Transactions. This law states that there are essential properties that each electronic invoice in the UAE should demonstrate. For example, an organisation should maintain the electronic document in the same format as it was created, sent, or received. In other words, the organisation should ensure that the invoice content cannot be altered.

Other properties include that:

  • Time stamps be applied on each e-invoice to guarantee that the document has remained unchanged since its creation, and is available to be displayed online or printed.
  • Electronic invoices be available in a readable format.
  • There is secured online access for e-invoices to be displayed and available to download as PDFs.
  • Authenticity of the origin needs to be guaranteed. For each electronic invoice, there is an original file available to download anytime.

Certified electronic signature is recommended as a method to identify issuer, authenticate, and verify data electronically. But it is not required.


Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Archiving

The arrival of VAT in the UAE has made the archiving of invoices, among other transaction documentation, more important than ever. Under Federal Law No. (7) of 2017 for Tax Procedures, VAT-registered companies have to retain invoices for at least 5 years (+1).In some cases, the archiving period could extend to 15 years. This is where electronic invoicing can help.

By archiving invoices digitally, it is possible to identify the issuer, prevent modifications, and guarantee document readability. In addition, companies with the e-archive are able to grant temporary access to the Federal Tax Authority and instantly retrieve documents during a tax audit.

UAE companies looking to launch electronic invoicing with supply chain partners need to be certain that they are working with a provider that meets all legal requirements imposed by the UAE.


Want to know more about Basware’s archiving services?

Download our Basware Vault fact sheet here to learn more about our flexible and scalable solution.

Basware Services

Basware supports the receiving and sending of e-invoices in the UAE. Digital Signature is is strongly recommended. Our tech partners provide a signature service for signing and verification.


Want to find out how we can help in your specific case?

Speak to a member of our team to learn more.

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Interoperability

Basware currently has no connections to any interoperability partners in the UAE.

Our advice

The UAE operates on a post-audit model. The introduction of VAT  has led to increased mandatory requirements for e-invoices. However, this is not a clearance model and no interface to a government portal is required.

Basware handles the receipt and sending of e-invoices with the ability to digitally sign these invoices. For paper invoices Basware offers both an outsourced Scan and Capture service and self-service scanning and optical character recognition (OCR) technology. A portal for suppliers to create their own invoices is also available.


Want to understand how we can help in your case?

Get in touch with our experts.

Contact us

Electronic Invoicing United Arab Emirates (UAE)

The United Arab Emirates (UAE) operates on a post-audit model.

The use of electronic invoicing is allowed but not mandatory in the UAE according to Federal Law No. (1) of 2006 On Electronic Commerce and Transactions. This law states that there are essential properties that each electronic invoice in the UAE should demonstrate. For example, an organisation should maintain the electronic document in the same format as it was created, sent, or received. In other words, the organisation should ensure that the invoice content cannot be altered.

Other properties include that:

  • Time stamps be applied on each e-invoice to guarantee that the document has remained unchanged since its creation, and is available to be displayed online or printed.
  • Electronic invoices be available in a readable format.
  • There is secured online access for e-invoices to be displayed and available to download as PDFs.
  • Authenticity of the origin needs to be guaranteed. For each electronic invoice, there is an original file available to download anytime.

Certified electronic signature is recommended as a method to identify issuer, authenticate, and verify data electronically. But it is not required.


Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.