The UAE Ministry of Finance has recently unveiled details regarding the forthcoming Continuous Transaction Controls (CTC) mandate at the e-Invoicing Exchange Summit in Dubai.
In a significant move towards digital transformation, the UAE will implement e-Invoicing utilizing the Peppol 5-corner model. This model positions the tax authority as the ultimate recipient (corner 5) of all e-Invoices processed by businesses. It’s important to note that e-Invoices will need to be sent through the Peppol network adhering to the UAE PINT format.
Initially, this mandate will encompass both Business-to-Business (B2B) and Business-to-Government (B2G) transactions. However, there’s an ambitious plan to include Business-to-Consumer (B2C) transactions in the foreseeable future. Here are the crucial timelines for businesses:
- Q3 2024: Finalization and announcement of service provider certification standards along with the UAE Data Dictionary.
- Q2 2025: Official release of the e-Invoicing legislation.
- July 2026: Commencement of Phase 1, marking the start of invoice reporting to the tax authority.
This is a pivotal moment for the region’s digital economy and signifies a leap towards enhancing transparency and efficiency in business transactions. Prepare your business now to ensure a smooth transition.
