UAE: Voluntary e-invoicing model enables direct exchanges between sellers and customers

The 4-Corner system will facilitate the transition to the upcoming e-invoicing mandate.

The UAE Ministry of Finance (MoF) on April 21, 2026, announced the launch of the e-invoicing 4-Corner model, enabling businesses to exchange e-invoices through accredited channels.

Background

The UAE MoF on September 29, 2025, issued Ministerial Decision 244 of 2025, establishing the framework and phased implementation timeline for the e-invoicing system using a 5-corner model. Voluntary adoption of the full-fledged system begins July 1, 2026, with the pilot program. Mandatory implementation will apply in phases based on entity size and type:

Taxpayers with annual revenue of AED 50 million or more must appoint an accredited service provider (ASP) by July 31, 2026, and implement e-invoicing by January 1, 2027.
Taxpayers with annual revenue below AED 50 million must appoint an ASP by March 31, 2027, and implement by July 1, 2027.
Government entities must appoint an ASP by March 31, 2027, and implement by October 1, 2027.

Overview of the 4-Corner system

The e-invoicing 4-Corner model launched by the MoF is voluntary and has been enabled to facilitate the transition to the upcoming 5-Corner model. The system allows businesses across the UAE to exchange e-invoices via MoF-approved ASPs. Businesses can access the EmaraTax system to select their preferred ASPs and initiate the onboarding process. To participate, businesses must enter into a commercial agreement with their chosen ASP before completing onboarding and commencing e-invoice exchange.

The model enables direct e-invoice exchange between Corner 1 (seller) and Corner 4 (customer), supporting more efficient, secure, and compliant operations. The initiative also enhances transparency, streamlines processes, and strengthens connectivity across the business ecosystem.

The MoF has announced that the tax reporting capability (Corner 5) is scheduled to go live ahead of the July pilot phase.

Next steps

Businesses can select their ASP, finalize contractual arrangements, and complete onboarding to benefit from the e-invoicing framework. The MoF will provide further details on the upcoming pilot phase and the introduction of Corner 5 capabilities.

For further information, contact a KPMG tax professional:

Luis Alonso | lalonso1@kpmg.com

Philippe Stephanny | philippestephanny@kpmg.com

Ramon Frias | ramonfrias@kpmg.com

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UAE: Voluntary e-invoicing model enables direct exchanges between sellers and customers

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