Electronic Invoicing (E-invoicing) in the UAE

A Brief Overview of the Legislation from realLaw AI 

Key Questions 

What Is E-Invoicing in the UAE

An electronic invoice is not a PDF, but a data file in XML format. Your system transmits it to your ASP; the ASP verifies it and delivers it to the buyer’s ASP via the international Peppol network; and both ASPs transmit the invoice data to the FTA. It is the XML file that constitutes the legally valid tax invoice; the PDF is merely a readable copy.

The UAE model is called DCTCE (Decentralized Continuous Transaction Control and Exchange) or the “five-corner model”:

    1. Corner 1 — Supplier. The supplier’s ERP, billing system, or ASP portal generates the invoice data.

    2. Corner 2 — the supplier’s ASP. It validates the data against the PINT AE standard, assigns a UUID, and sends the document via the Peppol network.

    3. Corner 3 — the buyer’s ASP. It receives the document and delivers it to the buyer.

    4. Corner 4 — the buyer. Processes the XML in its system.

    5. Corner 5 — FTA. Receives data for each document from both ASPs: the supply report and the receipt report.

Five-corner model · Invoice flow and reporting in FTA