E-invoicing in the GCC: A region in digital transformation

Saudi Arabia: Leading the charge with FATOORA

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Saudi Arabia has taken a pioneering role in e-invoicing with its FATOORA system, implementing a phased approach based on a clearance model - a system where invoices must be validated by the tax authority before they are shared with the buyer.

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Following the introduction of VAT in 2018, Saudi Arabia launched Phase 1: The Generation Phase in December 2021. This required businesses to generate and store electronic invoices in a structured format, such as XML or PDF/A-3.

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Now, the country is progressing through Phase 2: The Integration Phase, which mandates real-time invoice clearance via integration with the Zakat, Tax and Customs Authority (ZATCA) system. This phase is being rolled out in waves based on businesses' annual revenues, with several deadlines already announced.

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While tax invoices must be cleared by ZATCA before being sent to customers, the actual exchange of invoices between businesses remains unregulated. This means companies can choose their preferred method of sending invoices once clearance has been obtained.

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United Arab Emirates: Advancing with a decentralised model

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The United Arab Emirates (UAE) is also moving forward with its e-invoicing mandate, expected to take effect in July 2026. Like Saudi Arabia, the UAE introduced VAT in 2018, but it is adopting what is known as a decentralised "5-corner model" rather than a centralised clearance system.

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Under this model, businesses will exchange electronic invoices via Accredited Service Providers (ASPs), who will be responsible for validating invoices and reporting them to the Federal Tax Authority (FTA). Unlike Saudi Arabia’s pre-clearance model, where tax invoices must be validated before being sent to the buyer, the UAE's system allows invoices to be exchanged freely after validation by an accredited provider.

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At the core of this system is Peppol PINT (Peppol International Invoice standard), a globally recognised framework that facilitates seamless e-invoicing and cross-border trade. Peppol ensures interoperability by allowing businesses to exchange invoices using a common standard through a trusted network of service providers.

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Latest developments: Accreditation of Service Providers

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The UAE has recently taken a significant step forward in its e-invoicing journey with the issuance of Ministerial Decision No. 64 of 2025, which defines the eligibility criteria and accreditation procedures for service providers. To participate in the system, service providers must now obtain certification through the official Accreditation Portal, which is already open for submissions.

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The accreditation process is designed to protect businesses, ensure the security and reliability of e-invoicing, and establish regulatory oversight over service providers. Only certified service providers will be authorised to facilitate e-invoice exchanges, reinforcing digital compliance and innovation within the UAE's tax ecosystem.

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Phased rollout and future steps

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The UAE’s e-invoicing system is expected to be introduced gradually, with an initial focus on Business-to-Business (B2B) and Business-to-Government (B2G) transactions, followed later by Business-to-Consumer (B2C) transactions.

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Currently, the country is in the public consultation phase for its e-invoicing data dictionary, with ASP accreditation having begun in March 2025. This initiative forms part of the UAE’s broader 'e-billing system' project, which aims to streamline tax return automation and enhance tax compliance.

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Other GCC countries: Progress and plans

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Other Gulf Cooperation Council (GCC) countries are likewise actively advancing their e-invoicing initiatives to enhance tax compliance and streamline financial processes.​

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Bahrain: Advancing towards e-invoicing implementation

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Bahrain introduced Value Added Tax (VAT) in January 2019 and is now exploring options to implement e-invoicing to boost VAT compliance and combat tax fraud. Its National Bureau for Revenue is currently conducting a public consultation on the proposed system and is likely considering a phased approach, possibly mirroring Saudi Arabia's model.

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Oman: Preparing for a phased e-invoicing rollout

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Oman, having introduced VAT in April 2021, has also confirmed its plans for e-invoicing and has issued amendments to its VAT regulations to include electronic tax invoices, with a phased implementation planned. Initially, Oman planned to introduce mandatory B2B e-invoicing by October 2024, following a voluntary period starting in April 2024. However, due to the absence of detailed design and system specifications, the mandatory launch was postponed to 2025.

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The Tax Authority has confirmed a phased approach, but the exact timeline and technical details are still under development. Though not yet confirmed at this stage, it's likely that Oman will implement a decentralised 5-corner model with accredited service providers.

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Qatar: Laying the groundwork for e-invoicing

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Qatar, while having ratified the GCC VAT Framework Agreement, has not yet introduced VAT but is nevertheless showing signs of progress in e-invoicing. The Qatar General Tax Authority (GTA) has issued tenders for legal support and the development of a central e-invoicing platform. The country is reportedly considering a clearance model for Business-to-Government (B2G) and Business-to-Business (B2B) invoices, and a reporting model for Business-to-Consumer (B2C) invoices. ​

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Kuwait: Monitoring regional developments

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Kuwait similarly has yet to introduce VAT despite having ratified the framework, but has not yet announced specific e-invoicing initiatives. However, as a member of the GCC, it continues to monitor regional developments in e-invoicing and may consider future implementation in line with its tax policy objectives.​

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These developments reflect a broader trend within the GCC towards digital transformation and enhanced tax compliance through the adoption of e-invoicing systems.

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Regional trends and challenges

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Several regional trends are emerging. There's a strong link between VAT implementation and e-invoicing mandates, with real-time reporting and integration with tax authorities' systems becoming key. Interoperability and standardization, along with phased implementation approaches, are also notable trends. The use of technology, including AI, for anti-fraud measures is also increasing.

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Challenges include varying levels of digital readiness among businesses, the need for clear guidelines and support from authorities, and ensuring data security and privacy. Despite these challenges, e-invoicing is becoming essential for doing business in the GCC.

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The future of e-invoicing in the GCC

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The GCC region is clearly on a path towards digitalizing tax processes through e-invoicing. As countries implement and refine their systems, businesses need to stay informed and adapt to the changing landscape. Unifiedpost is closely monitoring these developments and working to ensure our solutions are compliant with the evolving regulations in the GCC, supporting clients in navigating these changes.

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