UAE businesses with annual revenue of Dh50 million and above are rushing to appoint an Accredited Service Provider (ASP) ahead of tomorrow’s deadline for e-invoicing compliance, with demand surging for providers already approved by the Federal Tax Authority (FTA).
Tax experts stressed that meeting the deadline is the start, not the finish. Businesses subject to the first phase of the rollout must also complete full technical implementation before the go-live date of January 1, 2027.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Firms that miss the October 30, 2026, deadline risk a penalty of Dh5,000 for each month, or part of a month, of delay in meeting e-invoicing requirements under Cabinet Decision No. 106 of 2025.
“The pressure is mounting as businesses not only need to appoint an ASP but also prepare for full technical implementation, which is a separate milestone ahead of the January 1, 2027, go-live date,” said Anish Mehta, partner at Finerio Auditors and Advisors.
“Even a one-day delay can attract a penalty for a full month. Importantly, this is not a one-time fine and can accumulate with continued non-compliance,” he added.
How to avoid a fine
Nirav Shah, managing director of Fame Advisory, said that to avoid the penalty, a business needs only to finalise its choice of one of the listed providers, log in to the EmaraTax portal, and select and submit its ASP. However, he noted that most businesses had still not fully assessed their gaps or identified which master data needed updating for an efficient rollout.
Muhammad Amir, client accounting manager at Sovereign PPG Corporate Services, said businesses’ questions were shifting from what the rules meant to whether their systems, data and processes were ready.
“Appointing a provider by Friday is the immediate priority for businesses in scope. But it is only the first step: the real test will be whether they can integrate their systems, prepare accurate data and be ready for the January rollout,” he said.
Risks of last-minute onboarding
Anish Mehta warned that late appointment leaves less time for ERP mapping, system testing and staff training, potentially increasing the risk of billing disruptions and delayed customer payments.
Amir said the biggest risk was treating e-invoicing as a box-ticking exercise rather than an operational change involving finance, tax and IT. Businesses that had not yet appointed a provider should act immediately, he said. If they could not meet the deadline, they should proceed with the appointment as quickly as possible and seek advice on their compliance position rather than assume an extension would be granted.
He also pointed to confusion over the Dh50 million revenue threshold, saying businesses must understand their own obligations rather than assume these depend on the size or status of their customers.
‘Ample notice’ given
Kush Ahuja, head of Middle East and Eurasia at the Association of Chartered Certified Accountants (ACCA), said businesses had received ample notice and guidance, including reminders and practical support.
“Those that have taken a proactive approach should already be well prepared, avoiding the pressure of last-minute decisions that may result in processes that are not necessarily the most efficient or suitable for their operations,” he said.
He said accountants and professional advisers had a role in balancing compliance, risk management and operational efficiency. He added that ACCA was among the first to take the initiative, holding dedicated sessions and webinars for members well ahead of the deadline.
“Ultimately, the priority should not simply be meeting the deadline, but putting the right processes in place to support businesses over the long term,” Ahuja said.
Businesses with annual revenue below Dh50 million have more time. Their ASP appointment deadline is March 31, 2027, with mandatory go-live on July 1, 2027.
Source: Khaleej Times