Overview
The days of chasing paper trails and constantly nudging clients for overdue payments are coming to an end. As the UAE accelerates its digital transformation, eInvoicing is the gateway towards enhancing efficiency, transparency, and compliance in financial transactions. Soon, it won’t just be an option, it’ll be mandatory.
On the 28th of April 2025, the UAE Ministry of Finance (MoF) issued an extensive clarification document outlining the onboarding process for end users – both suppliers and buyers – into the eInvoicing system through Accredited Service Providers (ASPs). The document emphasizes the importance of identity verification of the businesses to ensure the security and proper functionality of the eInvoicing system.
The MoF has laid out a structured approach to eInvoicing adoption, which consists of three processes: the onboarding process, reverification process, and the offboarding process.
The three stages are designed to ensure that all end users are properly identified and verified, periodically validated, and smoothly delinked when necessary.
1) Onboarding Process
The onboarding process consists of three steps:
- Identity Verification: End users’ login to EmaraTax, select their preferred ASP, and input identification details (e.g., TIN, email, mobile number) in the Service Providers Portal.
ASPs verify this information via EmaraTax and upon validation, retrieve the end users’ details from EmaraTax. - eInvoicing Endpoint Creation: ASPs enter the retrieved details in the end user onboarding application. On submission of the application, the ASP Portal generates the eInvoicing endpoint (electronic address) for the business, registering it in the Peppol Service Metadata Locator (SML).
- Central Register Update: The ASP Portal then updates the end user endpoint details in the central register using MuleSoft API. MuleSoft API refers to an interface that helps different software applications talk to each other and share data.
What are the important documents and information required for the onboarding process?
The end user (buyer/ supplier) is required to provide the following important details for the onboarding process:
- Legal Name
- VAT TRN
- Trade License
- Primary Business Activity
2) Reverification Process
The end user is required to reverify their identity information periodically or in case of change of circumstances to maintain up to date data.
Examples of key scenarios related to change in circumstances:-
For a VAT Registered end user:
3) Offboarding Process
An end user can offboard from an ASP for two reasons:
- The end user is no longer a UAE business and wants to terminate their endpoint from the eInvoicing system and Peppol SML.
- The end user wants to switch their ASP.
Recommendations
As the UAE advances towards mandatory eInvoicing, businesses must take proactive steps to ensure compliance and seamless integration into the new system. Here are essential recommendations to guide your preparations:
1. Update business information: Verify that the trade license of the legal entities under the scope of eInvoicing, VAT Tax Registration Number (TRN), and primary business activities are up to date and accurate. This foundational step is crucial for maintaining compliance.
2. Prepare required documentation: Gather all necessary documents in advance, including a valid trade license, VAT certificate, financial information, UAE bank account details, and contact information. Having these ready will streamline your onboarding process.
3. Understand the Peppol 5-corner model: Familiarize yourself with how the Peppol 5-corner model operates. This understanding is vital for ensuring your business can efficiently navigate the eInvoicing landscape.
By following these recommendations, businesses can start effectively preparing for the onboarding transition to the eInvoicing system, ensuring compliance and minimizing disruptions in their operations.