Who needs to comply

In scope

• •Any business conducting B2B (business-to-business) transactions in the UAE, regardless of VAT registration status.
• •Any business conducting B2G (business-to-government) transactions in the UAE, regardless of VAT registration status.
• •Businesses that aren't VAT-registered: you're still in scope if you conduct business transactions in the UAE. You'll need to register with the FTA for a Tax Identification Number (TIN) if you don't already have one.
• •Free zone entities, with no blanket free zone exemption.
• •Non-resident businesses that issue UAE tax invoices, even without a local office.
• •Government entities, on their own separate ASP-appointment and go-live timeline.

Free zone entity? See the dedicated free zone guide.

Excluded or not yet in scope

• •B2C (business-to-consumer) transactions, excluded until a future Ministerial Decision extends the mandate.
• •Business transactions conducted by government entities in a sovereign capacity, where they aren't in competition with the private sector.
• •Certain international airline transactions: passenger transport with an electronic ticket, ancillary services, and (for 24 months) air cargo with an airway bill.
• •Financial services that are exempt from VAT.
• •Transactions between entities inside the same VAT group: a 24-month grace period (1 January 2027 to 1 January 2029) applies before these are subject to full e-invoicing reporting.