UAE e-invoicing Phase 2 with TallyPrime
Annual revenue below AED 50 million? Appoint your Accredited Service Provider (ASP) by 31 March 2027 and go live on 1 July 2027. We help you get TallyPrime ready, remotely across the UAE.
The rules
Phase 2 Dates Who is in Scope How It Works FinesTallyPrime
TallyPrime e-Invoicing Select ASP Our Services QuestionsE-invoicing for UAE businesses under AED 50 million
The UAE is replacing PDF and paper B2B and B2G invoices with structured electronic invoices, exchanged through Ministry of Finance accredited providers and reported to the Federal Tax Authority (FTA). Phase 2 is the group with annual revenue below AED 50 million, which makes it the phase most small and mid-sized UAE businesses fall into.
A PDF no longer counts
A valid e-invoice is structured XML data in the PINT AE format. A PDF, a scan or an emailed copy does not meet the requirement.
An ASP is mandatory
Every business in scope appoints an Accredited Service Provider. The ASP carries invoices across the Peppol network.
Your data must be complete
A PINT AE tax invoice has about 51 mandatory fields, so TRNs, item details, units and tax categories need to be right in your masters.
UAE e-invoicing deadlines, phase by phase
Two dates apply to each phase: the date to appoint an ASP, and the date e-invoicing becomes mandatory.
Voluntary
- Who
- Any business opting in
- Open since
- 1 July 2026
AED 50M or more
- Appoint ASP by
- 30 October 2026
- Mandatory from
- 1 January 2027
Below AED 50M
- Appoint ASP by
- 31 March 2027
- Mandatory from
- 1 July 2027
Government entities
- Appoint ASP by
- 31 March 2027
- Mandatory from
- 1 October 2027
Who must comply in the UAE
The mandate is based on doing business in the UAE, and it covers mainland and free zone companies across Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain.
Covered
- B2B and B2G invoices and credit notes
- Businesses in the UAE, whether or not they are VAT registered
- Free zone businesses, as there is no exemption based on location
- Businesses not registered for VAT must issue within 14 business days of the transaction
Excluded
- B2C invoices, until further notice
- Government entities acting in a sovereign capacity
- International airline passenger tickets and related ancillary documents
- VAT-exempt or zero-rated financial services
- International air cargo under an airway bill, and transactions within a VAT group, each for 24 months
Exclusions have detailed conditions. Check your own activity against Ministerial Decision 243 of 2025, as amended by Decision 197 of 2026.
The Peppol five-corner model
Your invoice passes through each corner, so generating an invoice does not by itself mean the exchange is complete. Its status has to be tracked.
- 1. SellerRecords the invoice in TallyPrime or another system.
- 2. Seller's ASPValidates it and sends it in PINT AE XML.
- 3. Buyer's ASPReceives it over the Peppol network.
- 4. BuyerReceives the invoice in their own system.
- 5. FTAReceives the required tax data.
UAE e-invoicing fines
The Ministry of Finance announced updated penalties on 30 October 2026, replacing Cabinet Decision 106 of 2025.
| Violation | Penalty |
|---|---|
| Not implementing e-invoicing, including not appointing an ASP on time | AED 5,000, plus AED 5,000 for each month or part month it continues, capped at AED 50,000 in any 12 months |
| E-invoice or e-credit note not issued or sent on time * | AED 100 each, capped at AED 5,000 a month |
| Not telling your ASP about changes to registered data * | AED 1,000 per day |
* Amounts under Decision 106 of 2025. The Ministry's announcement did not restate them, so confirm them against the text of the new decision.
Your Phase 2 checklist
Our suggested order of work for a smooth 1 July 2027 start.
Now to January 2027
- Confirm your phase and any exclusions
- Upgrade to the latest TallyPrime release
- Check EmaraTax access and your TRN
By 31 March 2027
- Clean party, item, unit and tax data
- Compare ASP options
- Appoint your ASP through EmaraTax
April to 1 July 2027
- Test invoices and credit notes in the voluntary phase
- Train the team on status and rejections
- Go live on 1 July 2027
Built into TallyPrime, with Tally as your ASP
Tally is listed by the UAE Ministry of Finance as an ASP and is Peppol certified. Tally describes the solution as a fully integrated system with unlimited e-invoices at no incremental cost.
Generate and exchange
Create e-invoices singly or in bulk from your normal vouchers, and exchange them without leaving TallyPrime.
Validation before exchange
Missing or incorrect party, item, tax and invoice details are flagged early, which helps reduce rejections.
Status tracking
The e-invoice report shows pending, generated and rejected invoices, with corner-wise status and UUID at voucher level.
Accounting and VAT 201 together
One transaction entry updates your books, e-invoicing and VAT 201 data. VAT returns can be reconciled with EmaraTax.
Bulk setup reports
VAT Rate Setup, Map UOM to UQC and Update Party TRN help you correct many masters at once.
English and Arabic
Work in either language, and print invoices in English, Arabic or both. You can keep recording during an outage.
Select Tally as your ASP
- In the latest TallyPrime, go to Exchange > All VAT Options > e-Invoice Login/Logout.
- Enable your Tally.NET ID and complete the e-invoicing sign-up.
- Press V to open EmaraTax, log in and select your VAT-registered entity.
- Choose Tally Software Solutions FZCO as ASP, enter the details and submit.
- Back in TallyPrime, press S to refresh. Your PEPPOL ID appears under E-INVOICING > ASP.
Daily e-invoicing in TallyPrime
- Log in to e-invoicing using OTP.
- Record the sales voucher as usual and accept it.
- Select Yes to generate and exchange the e-invoice.
- Open Alt+G (Go To) > e-Invoice to check its status.
- If rejected, see which corner rejected it, correct the data and exchange again.
Phase 2 work we handle for you
Saudi Solution helps you from the first readiness check to your first live invoices.
Readiness check
We review your TallyPrime version, company setup and masters, and list what needs fixing.
Upgrade and TSS renewal
We move you to the latest release and handle your Tally Software Services renewal.
ASP and EmaraTax onboarding
We guide your ASP selection and registration, step by step.
Data clean-up
We correct party TRNs, items, units, currencies, VAT rates and ledgers, and migrate data from other systems.
Tally customization
We build add-ons and invoice formats around your process, in English and Arabic.
Training and support
We train your team on invoices, credit notes, status reports and rejections, then support you after go-live.
UAE e-invoicing Phase 2: your questions answered
What is UAE e-invoicing Phase 2?
Phase 2 covers businesses with annual revenue below AED 50 million. They must appoint an ASP by 31 March 2027 and implement e-invoicing from 1 July 2027.
What is the deadline to appoint an ASP in Phase 2?
The deadline is 31 March 2027. Businesses with revenue of AED 50 million or more had an earlier deadline of 30 October 2026.
Does TallyPrime support UAE e-invoicing?
Yes. Tally is listed by the UAE Ministry of Finance as an ASP, and the latest TallyPrime release can generate, exchange and track e-invoices over the Peppol network.
Is a PDF invoice still valid after go-live?
Not for in-scope B2B and B2G transactions. These need a structured e-invoice in PINT AE XML format, sent through an ASP.
What is PINT AE?
PINT AE is the UAE version of the Peppol International Invoice standard. It defines the XML format and the mandatory data fields for UAE e-invoices.
Do free zone companies have to comply?
Free zone location is not an exemption. Scope depends on your business activity and transactions, so check your position against the exclusions.
What is the fine for missing the deadline?
Under the update announced on 30 October 2026, the fine is AED 5,000, plus AED 5,000 for each month or part month it continues, capped at AED 50,000 in any 12 consecutive months.
Can you help if we are not in Saudi Arabia?
Yes. We are based in Jeddah and work with UAE businesses remotely, by phone, WhatsApp and online sessions, in English and Arabic.
الفوترة الإلكترونية في الإمارات: المرحلة الثانية
تشمل المرحلة الثانية الشركات التي تقل إيراداتها السنوية عن 50 مليون درهم. يجب تعيين مزود خدمة معتمد (ASP) بحلول 31 مارس 2027، وتطبيق الفوترة الإلكترونية اعتبارًا من 1 يوليو 2027. نساعدكم في تجهيز TallyPrime عن بُعد باللغتين العربية والإنجليزية.
Get your TallyPrime ready for Phase 2
Tell us your TallyPrime version and your number of users. We will tell you what needs doing before 31 March 2027.
Ismail Eliat
Check the source
Last reviewed 5 November 2026. This page is general guidance, not legal or tax advice. Rules can change, so confirm them with the Ministry of Finance, the FTA or your tax adviser.