E-invoicing in UAE
Transform Your Financial Management with e-Invoicing in UAE
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Last updated at
October 15, 2025
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Book NowThe United Arab Emirates will enforce mandatory e-invoicing on all business-to-business (B2B) and business-to-government (B2G) transactions starting 1 January 2027. Businesses may also voluntarily opt in from 1 July 2026 under a pilot phase.
This rule will apply to both VAT-registered and non-VAT registered businesses. Any entity that issues an invoice to a business or a government department must create the invoice in the structured format prescribed by the Ministry of Finance and exchange it digitally through an Accredited Service Provider approved by the Federal Tax Authority (FTA).
The regulation aims to standardize invoicing, prevent fraud, and create a transparent digital trail across all types of transactions. This blog explains the UAE e-invoicing framework for B2B and B2G transactions, compliance rules, benefits, and how flick network supports businesses in meeting these requirements.
B2B Transactions
B2B transactions involve companies exchanging goods or services. In the UAE, every B2B invoice will use an XML format approved by the Federal Tax Authority and it will pass on the Peppol network for validation. A supplier will bill a retailer, a wholesaler will charge a distributor, and a consultancy will send an invoice to a corporate client. The use of a structured format will keep records accurate, reduce mistakes, and maintain transparency on financial operations.
B2G Transactions
B2G transactions involve invoices sent by companies to government entities for services or products provided. These invoices will follow the same XML structure and transmission method on Peppol. A construction company will bill a municipality for a project, or a software firm will invoice a ministry for technology solutions. The system keeps compliance straightforward and records government payments clearly.
B2C Transactions
B2C transactions involve selling to individual customers. E-invoicing is not required for these sales. Businesses that sell only to consumers are excluded from the mandatory scope, but they may still receive purchase invoices digitally through the system to stay aligned with compliance and maintain accurate records.
For B2B and B2G transactions in the UAE, compliance with the Federal Tax Authority’s e-invoicing system will be mandatory. Businesses will need to issue, transmit, and process e-invoices in the structured format through an Accredited Service Provider. For B2C, e-invoicing is currently not required, but businesses may still choose to receive purchase invoices from suppliers digitally.
Invoice format: Every invoice will need to follow the PINT AE XML format so that it can be read and processed on the Peppol network.
Transmission: Invoices must be issued and transmitted within 14 days of the transaction and validated through an Accredited Service Provider.
Registration: A business must register with the FTA and appoint an Accredited Service Provider to enable invoice exchange.
Archiving: All invoices and credit notes must be stored within the UAE in line with the retention rules of the Tax Procedures Law.
System Failures: Any system failure must be reported to the FTA within two business days.
The adoption of e-invoicing in the UAE will change the management of B2B and B2G transactions. It is more than a legal requirement because it will provide businesses and government suppliers with long-term advantages on compliance and operational efficiency. For B2C, e-invoicing is currently not required, but receiving supplier invoices digitally will ensure the accuracy of records, reduce errors in accounting, and optimize financial processes for businesses that sell directly to consumers.
The main benefits are:
Faster processing: The validation of invoices will reduce approval delays so payments will move quicker in B2B and B2G transactions and suppliers to B2C businesses will manage their cash flow more efficiently.
Error reduction: Automated checks on the data of invoices will prevent mistakes and mismatches that often delay settlements in all types of transactions.
Audit readiness: Digital records of invoices will simplify FTA audits and ensure every document will be available for verification when required.
Cost savings: Using e-invoicing will remove the need for manual paperwork and physical delivery of documents which will lower operational costs.
Transparency: A digital trail of invoices will build trust in government procurement, business reporting, and B2C supplier management by giving stakeholders clear and accurate information.
As a pre-approved e-invoicing provider by the Ministry of Finance (MoF) and the Federal Tax Authority (FTA), Flick provides a complete e-invoicing solution for the UAE that will integrate on the existing ERP or billing system without replacing the current platform. The solution will ensure full compliance with the regulations of the Federal Tax Authority and smooth daily operations across the B2B, B2G, and B2C workflows. Even a business that sells only to end consumers (B2C) will be able to use Flick to receive supplier invoices digitally, maintain the accuracy of financial records, and streamline the accounting processes on a single platform.
The main features of Flick include:
Create E-Invoices in Approved Formats
Flick creates invoices in the PINT AE XML format approved by the Federal Tax Authority. Each one goes through automatic validation and readies for submission. This cuts down on mistakes and keeps every transaction aligned with regulations.
Direct Validation and Submission
The platform connects with the FTA through a Peppol-certified Access Point. This link enables real-time validation, secure submission, and smooth approval of invoices for both business and government transactions.
Manage Corrections and Credit Notes
Businesses can create corrections or credit notes directly in Flick. This keeps records correct, prevents disputes, and avoids compliance issues from manual changes.
Handle High Invoice Volumes
Flick handles large numbers of invoices daily without affecting ERP or billing systems. Operations continue smoothly even during busy periods.
Receive Digital Purchase Invoices
Even businesses that sell only to B2C will receive purchase invoices digitally using Flick on the Peppol network. This will keep supplier invoices compliant on the FTA system, make them easy to track, and allow smooth integration into financial records.
Access Reliable Local Support
Flick offers support during setup and daily operations. Businesses can access local expertise to keep onboarding smooth, maintain compliance, and handle invoicing efficiently.
Businesses in the UAE manage a mix of operations across corporate clients, government contracts, and consumer sales. An ERP or accounting system is essential for handling procurement, inventory, compliance, retail billing, and large volumes of transactions. flick network will integrate with each ERP through APIs to create invoices in the FTA-approved XML format, validate them instantly, and deliver securely on the Peppol network.
Oracle Fusion ERP
Oracle Fusion ERP is a system of choice for large enterprises and government contractors in the UAE. It supports a full cycle of procurement, global compliance, and high-volume B2B billing. For B2C it works with retail systems to handle sales and VAT invoicing. Flick will connect with Oracle Fusion ERP to generate XML invoices, validate them on the Peppol network, and keep all financial records aligned with the FTA.
SAP Business One
SAP Business One is a reliable ERP for SMEs that manage distribution, trading, and retail operations. It gives control of inventory, supplier billing, and VAT-ready consumer invoicing. Flick will integrate with SAP Business One to create XML invoices, validate them instantly, and keep compliance active for B2B, B2G, and B2C transactions.
Oracle E-Business Suite (EBS)
Oracle EBS is trusted by enterprises that handle large B2B contracts, government billing, and cross-border operations. It supports procurement, logistics, and financial consolidation on a large scale. Flick will connect with Oracle EBS to generate FTA-approved XML invoices, validate data instantly, and submit securely on the Peppol network for both corporate and public sector clients.
Microsoft Dynamics 365 Finance & Operations
Dynamics 365 F&O is used by trading companies, suppliers, and retailers that need advanced financial management. It supports contracts of B2B, billing of B2G, and retail sales of B2C. Flick will automate invoice creation on Dynamics 365 F&O, validate XML files, and deliver them securely on the FTA platform.
SAP S/4HANA
SAP S/4HANA is a system for large enterprises that will require real-time reporting, management of procurement, and control of the supply chain. It will support workflows of B2B, billing for the public sector, and high-volume retail sales. Flick will integrate with SAP S/4HANA to generate XML invoices, validate them instantly on Peppol, and keep compliance active with the FTA.
Microsoft Dynamics 365 Business Central
Business Central is chosen by mid-sized businesses for distribution, retail sales, and supplier payments. It supports invoicing of B2B, billing for government projects, and VAT-ready sales for B2C outlets. Flick will connect with Business Central to generate XML invoices, validate records, and submit them securely on Peppol for compliance.
Nav ERP (Microsoft NAV)
Nav ERP also known as Microsoft Dynamics NAV is still used by trading firms, distributors, and retail outlets in the UAE. It supports accounting of businesses, procurement of goods, and billing of customers across B2B, B2G, and B2C. Flick will convert invoices from Nav ERP into FTA-approved XML, validate them, and deliver securely on the FTA system.
The UAE’s mandatory e-invoicing regulations will take effect from 1 January 2027 for B2B and B2G transactions, with a voluntary pilot phase available from 1 July 2026. For B2C, e-invoicing is currently not required, but digital receipt of supplier invoices will ensure accuracy of records, reduce accounting errors, and optimize financial processes for consumer-facing businesses. Any business that does not comply will face penalties along with delayed payments and increased audit exposure.
The adoption of UAE e-invoicing will speed up billing and reduce errors while ensuring every invoice stays aligned with Federal Tax Authority standards. Flick, as a pre-approved e-invoicing provider by the Ministry of Finance (MoF) and the Federal Tax Authority (FTA), provides a complete solution for invoice creation and validation with direct submission on the Peppol network plus secure storage and full audit readiness. The platform delivers faster processing with reliable compliance and efficient operations across all transactions.
Make the transition today by reaching our team or visiting flick network .
1. How is UAE e-invoicing different for B2B and B2G transactions?
B2B invoices are exchanged between companies and must be reported to the FTA on Peppol for validation. B2G invoices are also reported to the FTA but they include additional verification steps by government bodies before payment approval.
2. Do small businesses or freelancers need UAE e-invoicing for B2B transactions?
Yes. Every business including freelancers will follow the rules of e-invoicing when dealing with B2B and B2G transactions. The rule will apply on all entities regardless of size or VAT status.
3. Can one ERP system handle both B2B and B2G UAE e-invoicing?
Yes. A single ERP will manage both if the system is integrated with an ASP and supports the PINT AE XML format.
4. What challenges do businesses face when shifting to UAE e-invoicing for B2B vs B2G?
B2B will require staff training and updates on workflow while B2G will demand faster and error-free submissions because a government platform will reject incorrect entries.
5. Will UAE e-invoicing affect payment cycles in B2B and B2G?
Yes. B2B payments are faster and disputes are fewer. In B2G, payments only move forward once invoices pass government compliance checks.
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