Electronic Invoicing System in the UAE
Electronic Invoicing System in the UAE
As His Highness Maktoum bin Mohammed presided the meeting of the FTA’s Board of Directors for the year 2023, updates and status of the FTA’s transformational projects were discussed.
One of these FTA transformational projects is the Electronic Invoicing System.
What is Electronic Invoicing?
The process of creating, sending, and receiving invoices
electronically between businesses or between businesses and government
entities, replacing the traditional paper-based process.
GCC Perspective: E-invoicing
GCC Countries:
The Kingdom of Saudi Arabia (KSA) is the 1st nation to announce the implementation of e-invoicing on 04 Dec 2021 with a two-phase process:
- Generation Phase
- Integration Phase
Currently, KSA is in Phase 2 which rolled out in waves starting 01 Jan 2023.
Bahrain and Oman have also started planning to introduce electronic e-invoicing.
How can UAE Businesses prepare?
- Gap assessment on their current invoicing systems and processes to identify any potential gaps or areas for improvement.
- Review other countries’ e-invoicing regulations and best practices.
- Data privacy and system integrity assessment
- Update customer and supplier records
Key Takeaways
- With the emerging changes towards digitalization in the VAT industry, UAE businesses must assess the readiness of the Company to adopt to such changes.
- UAE Businesses must be prepared and set up strategy and process to accommodate the impact of these changes.
