Does E-Invoicing Apply to Manufacturers in the UAE? (2026 Update)

Does E-Invoicing Apply to Manufacturers in the UAE?

   Starting July 2026, manufacturers in the UAE must follow e-invoicing rules in specific cases. The requirement is not based on your industry alone, but on who receives the invoice.

Selling goods to any business entity, whether VAT-registered or not, is treated as a B2B transaction, which means e-invoicing is required. The same applies when the buyer is a government entity (B2G). You must follow the rule in both cases.

If your sales are limited to individual customers only and you are not dealing with business entities or public sector buyers, then it falls under B2C. In that case, the e-invoicing rule for issuing invoices does not apply yet. However, B2C sellers must still onboard to the FTA e-invoicing platform to receive purchase documents from their suppliers through Peppol.

E-Invoicing in the UAE

    From July 2026, B2B and B2G invoices must follow a structured format. The standard is called PINT AE. Invoices must be created in XML format and submitted using the Peppol Network. Submission requires an accredited service provider.

Once an invoice is submitted, it is sent simultaneously to both the buyer and the Federal Tax Authority (FTA). The buyer receives the PINT AE invoice, while a Tax Data Document (TDD) is shared with the FTA. Both are transmitted through the Peppol network in real time. If your billing system is connected to an accredited provider, this process takes place automatically in the background.

Does E-Invoicing Apply to Manufacturers?

It applies if your business:  

• Sells to other business entities  
• Supplies to government buyers

You are not required to issue e-invoices if:

• You sell only to individual consumers (B2C)

However, even if you sell only to B2C, you must still onboard to the FTA e-invoicing platform to receive purchase documents from suppliers.

If your business works with both consumers and businesses, you need to issue e-invoices only for the business transactions.

Distributors and E-Invoicing

   When you supply goods to distributors, the transaction is considered B2B regardless of their VAT registration status. Therefore, e-invoicing applies. If your buyer resells your product, that does not change the rule. The initial sale between you and the distributor is subject to the regulation.

Cross-border trade may be included in future regulations. For now, UAE rules apply only to local business and government transactions.

Why Manufacturers in the UAE Should Prepare Early for E-Invoicing

   Starting early gives you enough time to set everything up the right way. You catch issues sooner and avoid scrambling later. Here is what early preparation helps you avoid and how it improves your process.

1. Prevent Delays and Shipment Issues

Invoices with mistakes often get rejected by the Federal Tax Authority. When that happens, the shipment may be stuck until you fix the error and send a new invoice. That costs time. Preparing now lets you test how your system works. It gives you the chance to find and solve problems early.

2. Reduce Manual Work and Errors

Manual work often leads to mistakes or repeated data entry. This slows things down and takes up extra time. Using software that fills in the invoice correctly cuts down on errors. It also gives your team more time to focus on actual work.

3. Receive Faster Feedback from the FTA

Once an invoice is submitted, the FTA sends a response quickly. You will see the invoice reference number. If anything is wrong or missing, the system will tell you. If everything checks out, the invoice gets approved and can go to the buyer right away. No follow-up is needed.

4. Use Your Existing ERP System

Most manufacturers already use ERP or billing software. These tools can be set up to send invoices directly. Manual data entry is not required. You do not need to copy data to another file. This keeps things simple and saves time.

5. Fix Issues Before They Affect Orders

Starting early gives you a buffer. You can spot weak points in your system. Your staff can learn how the process works and handle different types of cases. Once the rule is in place, your team will be ready to manage the work without hold-ups.

Steps to Get Started

Check VAT Registration
Make sure your business is VAT-registered if it meets the AED 375,000 threshold in taxable supplies. Otherwise, confirm that your Corporate Tax Registration Number is available.

Identify Buyer Type
Review your buyers. If you sell to business entities or government organizations, e-invoicing applies. If your buyers are individuals, you are not required to issue e-invoices, but you must still onboard to receive documents.

List Buyer Details
Create a list of your B2B and B2G buyers to easily identify who requires an e-invoice.

Set Up with Flick Network
Flick handles everything from formatting to submission, with no technical work required on your side.

Connect ERP or Billing System
Your finance team can continue using the same software. Flick integrates seamlessly with your existing tools.

Run Tests Early
Test your full setup well before the deadline. This allows time to fix any problems and ensure smooth operations later.

How Flick Network Helps Manufacturers Stay Compliant

   Flick Network supports manufacturers with ERP integration and technical customization to help them comply with e-invoicing regulations. Here are a few examples:

Honda – Abdullah Hashim Co. Ltd.
Honda used a highly customized Oracle EBS system. Flick Network modified their workflows to match Phase 2 requirements. The system was tested and verified, enabling Honda to stay compliant without any disruption.

SEPCO – El Seif Group
SEPCO was using Microsoft Dynamics F&O, but it lacked the required fields for ZATCA. Flick filled those gaps and implemented a system flexible enough to accommodate future changes. SEPCO achieved full compliance and improved data accuracy through automation.

Saudi Fal – Emerson Saudi
The Controls Division needed transaction checks within their IFS ERP. Flick’s in-house team built a custom validation tool that maintained clean data while meeting both internal and external compliance requirements.

Conclusion

   The 2026 deadline may seem distant, but the preparation process is not instant. Getting your systems ready and training your team takes time and effort. Flick Network works closely with manufacturers and offers ready-to-deploy integrations to help them meet compliance requirements without delays.

FAQs

Q1. Do I need to issue e-invoices under UAE E-Invoicing if I sell only to end users?
 No. E-invoicing applies only to business or government buyers. However, you must still be onboarded to receive supplier invoices.

Q2. Under UAE E-Invoicing, what happens if I sell to both consumers and businesses?
 You are only required to issue e-invoices for sales to businesses or government entities.

Q3. Can I send PDF invoices for B2B deals under UAE E-Invoicing?
 No. The invoice must be formatted in XML and sent via a certified provider.

Q4. Is E-invoicing in the UAE mandatory if I’m not VAT-registered?
 Yes. If you are a business entity, e-invoicing applies for B2B and B2G transactions. You will use either your VAT TRN or Corporate Tax TRN.

Q5. What software can I use for UAE E-Invoicing?
 You must use a certified solution. Flick Network is one such provider designed for UAE E-Invoicing compliance.