United Arab Emirates
ERP and POS software for the United Arab Emirates
VAT at 5%, corporate tax, multi-emirate operations and bilingual invoicing — with e-invoicing readiness as the UAE regime is phased in.
Compliance summary
- Tax authority
- Federal Tax Authority (FTA)
- E-invoicing
- Being introduced — phased national programme, Peppol-based
- VAT rate
- 5%
- Currency
- AED
Last reviewed . Rates and deadlines change — confirm the current position with the authority above before you act on it.
What differs from Saudi Arabia
The UAE runs a 5% standard VAT rate rather than 15%, and a corporate tax regime that Saudi businesses do not face in the same form. Free-zone entities have their own treatment, which is exactly the kind of distinction that has to survive into your chart of accounts rather than being reconciled by hand each quarter.
E-invoicing readiness
The UAE is introducing a national e-invoicing programme built on the Peppol network, with accredited service providers and a phased rollout by taxpayer group. The architecture differs from the Saudi model: exchange through an accredited provider rather than direct clearance with the authority.
Because we already run a live clearance integration in Saudi Arabia, the parts that usually cost the most — structured invoice generation, document-type mapping, retention of the machine-readable original, and queueing when the network is down — are built and proven rather than theoretical.
Multi-emirate and multi-currency operations
Branches across emirates run on one system with per-branch stock, pricing, users and reporting, consolidating into a single ledger. Businesses trading across the Gulf can hold accounts in AED and transact in other currencies, with the exchange rate recorded on the document.
Common questions
Is e-invoicing mandatory in the United Arab Emirates?
The UAE is introducing a national e-invoicing programme built on the Peppol network, using accredited service providers and a phased rollout by taxpayer group. Because the phases are being introduced over time, confirm which group you fall into, and from when, with the Federal Tax Authority before you plan around a date.
How does the UAE e-invoicing model differ from the Saudi one?
The architecture is different: the UAE model exchanges documents through an accredited service provider on the Peppol network, rather than clearing each invoice directly with the tax authority as the Saudi regime does. The parts that usually cost the most are the same either way — structured invoice generation, document-type mapping, retention of the machine-readable original, and queueing when the network is down.
What is the VAT rate in the UAE?
The UAE applies a 5% standard VAT rate, alongside a corporate tax regime that Saudi businesses do not face in the same form. Free-zone entities have their own treatment, and that distinction has to survive into your chart of accounts rather than being reconciled by hand each quarter.
Can branches in several emirates run on one system?
Yes. Branches across emirates run on one system with per-branch stock, pricing, users and reporting, consolidating into a single ledger. Each branch reports separately without the group needing a second system to add them up.
Does it handle trading in more than one currency?
Yes. Businesses trading across the Gulf can hold accounts in AED and transact in other currencies, with the exchange rate recorded on the document itself rather than derived later from a period-end table.
Rates, regimes and deadlines in this summary change, and many countries are actively legislating on e-invoicing. This is general information, not tax or legal advice — confirm the current position with the authority named above or with your tax adviser before you rely on it.
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