E-invoicing in UAE
Transform Your Financial Management with e-Invoicing in UAE
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Flick team
Last updated at
August 11, 2025
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Book NowThe UAE is moving to a fully digital invoicing system. Starting July 2026, e-invoicing will be mandatory for businesses issuing invoices to other businesses (B2B) and governments(B2G).
This shift is especially important for construction companies, as their work often involves stage-wise contracts, multiple vendors, and tight payment timelines. Even small billing errors can disrupt cash flow and delay overall project progress.
The Federal Tax Authority now requires invoices to be sent and received in a specific structured digital format. PDFs and manual documents no longer meet compliance standards.
These rules apply to all businesses involved in B2B or B2G transactions, including main contractors, subcontractors, and suppliers. Businesses focused only on B2C are still expected to accept Peppol invoices from their vendors.
If you're part of the construction supply chain, your invoicing system must align with FTA regulations and support digital exchange through the Peppol network.
If you are a construction company in the UAE working on B2B or B2G transactions, you must follow the e-invoicing rules set by the Federal Tax Authority. This means relevant invoices should be issued and received in XML format. This format can be read and processed directly by systems, without manual input.
XML keeps data uniform across platforms. It helps prevent errors during entry and ensures compliance with VAT rules. It also speeds up internal workflows by cutting down on manual tasks and helps avoid delays in payments.
Invoicing in the construction sector is often complex. Projects run for long durations, and usually involve many suppliers and detailed records. Handling this manually increases the chance of mistakes. E-invoicing makes documents easier to track and faster to retrieve. It also makes audits and financial checks more efficient.
This is not just about following regulations. It is also about improving how your business manages payments and records.
1. Generate the Invoice
Flick creates the invoice in XML format, following the UAE’s e-invoicing regulations. The structure complies with the PINT AE standard issued by the Federal Tax Authority (FTA). It includes buyer and seller names, registration numbers, item details, and VAT breakdowns.
2. Validate with the FTA
The invoice is sent to the FTA system for validation. This checks the structure and tax calculations. Approved invoices receive a UUID and timestamp from the FTA. These two elements confirm the invoice is compliant.
3. Share with the Buyer
After validation, the invoice is delivered to the buyer using Peppol network via the Buyer’s Service Provider. Since the file is in XML, it can be read and processed automatically by the buyer’s system. There is no need to send a PDF or email.
4. Store the Invoice
Each invoice must be stored for at least five years. Flick stores the validated XML file along with the FTA-issued metadata. The archive remains secure and compliant. Printed copies or scans do not meet legal requirements under the new system.
Example: How It Works on Site
A construction company supplies concrete to a B2B client. After delivery, the finance team creates the invoice from their ERP. Flick converts the invoice to XML, validates it, and sends it to the FTA over Peppol, where it undergoes further validation. Once approved, the client receives it instantly in their system. There is no need to scan or email PDFs. The whole process takes seconds.
E-invoicing doesn’t have to be complicated. Flick Network connects with your ERP system whether it’s Oracle or SAP or even a local platform. It helps you generate and validate invoices in the FTA-approved XML format. You won’t need manual entry or deal with formatting issues. Compliance becomes effortless.
Trusted by companies across real estate, infrastructure and public works in the UAE, Flick makes invoicing simple through:
Construction billing doesn’t follow a straight line. Invoices may depend on project stages, contractor roles, or retention terms. Flick supports this complexity with tools made for construction workflows:
Even small oversights in invoice handling can lead to penalties or payment delays. These are the most frequent problems:
UAE e-invoicing is not optional for construction businesses anymore. From July 2026 onward, the regulations will be well-defined. Whether you’re billing a government client (B2G) or dealing with other businesses (B2B) and receiving invoices from a supplier, your business has to be onboard. Manual methods increase risk and delay. Flick Network offers a simple way to stay aligned with FTA rules and avoid penalties. With proper tools in place, you can run operations smoothly and focus on project execution.
1. Is UAE e-invoicing mandatory for construction companies that deal with B2B clients?
Yes. All construction companies working with B2B or B2G clients must comply.
2. Do I need UAE e-invoicing if my clients are not VAT-registered?
Yes. As long as they are businesses or government entities, the rule applies.
3. Is UAE e-invoicing required if I only work with B2C clients?
Yes. You still need to receive e-invoices from suppliers via Peppol.
4. Can I use PDF invoices to meet UAE e-invoicing rules?
No. The invoice must be in a structured electronic format.
5. Does UAE e-invoicing apply to subcontractors in the construction industry?
Yes. Any B2B or B2G transaction within construction must follow the rule.
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