UAE Unveils CTC E-Invoicing Framework

During the 2024 Dubai E-invoicing Exchange Summit, the UAE Ministry of Finance revealed further details of the long-anticipated CTC e-invoicing framework to the public.

Overview

The UAE Ministry of Finance (MoF) has announced its countrywide CTC e-invoicing mandate. The UAE has opted for the DCTCE, or 5-corner model, leveraging Peppol specifications. By this move, the UAE joins a growing group of countries deploying the most modern CTC model, including Singapore and Belgium. The UAE plans to establish its own Peppol Authority and leverage Peppol PINT as the format, similar to other non-EU Peppol markets such as Malaysia, Japan, Singapore, Australia, and New Zealand.

The initial scope will include B2B and B2G transactions, with B2C transactions being considered for the future.

Implementation Details

• No E-Invoice Portal for SMEs: The MoF indicated that they do not plan to develop an e-invoice portal for SMEs; this role will be fulfilled by Accredited Service Providers (SPs). However, they are considering making limited free-of-charge offerings one of the ASP accreditation criteria.

Expected Announcements and Timeline

• Q3 2024: Development of ASP certification requirements and procedures, as well as development of the UAE data dictionary.

• Q2 2025: Release of e-invoicing legislation. The MoF expects businesses to contract SPs and start exchanging e-invoices under the 4-corner model before the reporting requirement comes into force.

• December 2025: Rollout strategy, including the release of the rollout schedule based on taxpayer size.

• July 2026: Phase 1 go-live for reporting. The MoF envisions a gradual introduction based on company size, with companies allowed to voluntarily opt-in for reporting earlier than the envisaged timelines.

Stay tuned with Flick for updates in the UAE.