Start Implementing electronic invoicing system in the UAE

UAE Ministry of Finance amends VAT Law 8 of 2017 to start implementing electronic invoicing system in the UAE

First: Amendment of the following definitions: -

"Tax Invoice" by adding the word "Electronic Invoice"

"Credit Note" by adding the word "Electronic Credit Note"

Second: Adding the following definitions:

· Electronic Invoicing System: An electronic system dedicated to issuing, sending, exchanging and sharing invoice data and credit note in accordance with the legislation regulating tax procedures.

· Electronic invoice: An invoice that is issued, sent and received in an organized electronic format that enables automated and electronic processing, in accordance with the electronic invoicing system Electronic

· credit note: A permanent notice that is issued, sent and received in an organized electronic format that enables electronic automated processing, in accordance with the electronic invoicing system.

Third: Amending Articles (55), (65), (70) and (76) of Decree-Law 8 of 2017

· A phrase has been added in Article 55 regarding the retention of the invoice in accordance with the electronic invoicing system where it is required to be issued.

· A phrase has been added in Article 65 that the registrar subject to the electronic invoicing system must issue tax invoices and submit them in electronic form in accordance with the electronic invoicing system.

· A phrase has been added in Article 70 that the registrar subject to the electronic invoicing system must issue a tax creditor notice and submit it in the form of an electronic creditor notice in accordance with the electronic invoicing system.

· Clause (4-5) of Article 76 on the evaluation of administrative fines has been amended in the event of: -

o Failure to issue the tax invoice or the alternative document when making any supply within the legally prescribed period

o Failure to issue the tax credit notice or the alternative document within the legally prescribed period