The UAE launches an advanced model of electronic invoicing system to support transaction efficiency and enhance transparency

Today, the Ministry of Finance announced the launch of the “4Corner model” electronic invoicing system, in a qualitative step within the digital transformation process in the UAE, enabling businesses to exchange electronic invoices seamlessly through approved channels. Businesses throughout the country can now exchange electronic invoices through service providers approved by the Ministry of Finance (ASP).

Businesses can now access the “Emirates Tax” platform of the Federal Tax Authority to choose a service provider from among the service providers approved by the Ministry of Finance, and begin implementing the electronic invoicing system. To join the electronic invoicing system, businesses must enter into a commercial agreement with the approved service provider of their choice, complete the joining procedures, and begin exchanging electronic invoices.
With the availability of this service, businesses can directly exchange electronic invoices between the two parties of the transaction (the supplier and the buyer), which enhances the efficiency of operations, raises levels of security and compliance, supports transparency, simplifies procedures and enhances interconnection within the business system in the country.

Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, stressed that the system embodies the UAE’s continued commitment to developing its digital financial system in line with international best practices, and the launch of the electronic invoicing system contributes to enhancing the efficiency and transparency of commercial transactions, in addition to supporting compliance and enhancing integration within the tax system.
He called on businesses to take the initiative to adopt the system and benefit from its potential, in line with the UAE’s vision aimed at enhancing the competitiveness of its economy and consolidating its readiness for the future.

As part of expanding the scope of the initiative, the “Corner 5” tax reporting feature is scheduled to be launched before the start of the pilot phase scheduled for July of this year, thus enhancing the UAE’s commitment to continuous innovation and its leadership in the field of digital taxes. The adoption of the “4-Corner model” electronic invoicing system is consistent with global best practices, as it provides an integrated, scalable, and interoperable framework for electronic invoicing, in a way that supports future growth and innovation.

The Ministry also calls on businesses to take proactive steps by choosing the approved service provider, completing the necessary contractual arrangements, and starting joining procedures, enabling them to take full advantage of the capabilities of the available electronic invoicing system.
This achievement confirms the commitment of the UAE, represented by the Ministry of Finance, and its keenness to continue developing a world-class digital infrastructure, enhancing the ease of doing business, and building an advanced data-based economy.