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

This article was last updated on 15 May 2026 to reflect the recent approval of Qatar’s draft e-invoicing law and its executive regulations by the Cabinet.

E-invoicing is rapidly reshaping the digital landscape across the GCC, driven by the region's drive for modernisation and evolving tax regulations. A key aspect of this transformation is the adoption of various e-invoicing compliance models. As VAT frameworks continue to evolve, governments are using e-invoicing to improve compliance, efficiency and transparency. Let's explore the current state of e-invoicing in the GCC and what it means for businesses.

Saudi Arabia: Leading the charge with FATOORA

‍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.

‍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.

‍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.

‍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.

United Arab Emirates: Advancing with a decentralised model

‍The United Arab Emirates (UAE) is also moving forward with its e-invoicing mandate, with a pilot/voluntary adoption phase starting 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.

‍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.

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.

Accreditation of Service Providers

‍The UAE has issued Ministerial Decision No. 64 of 2025, which defines the eligibility criteria and accreditation procedures for service providers. This decision was recently amended by Ministerial Decision No. 56 of 2026, which provided greater clarity on the accreditation procedure and introduced key changes.

Service providers must obtain certification through the official Accreditation Portal. Among the revised criteria, a new "Experience Requirement" has been introduced, mandating that the proposed e-invoicing solution must have been in operation for a minimum of two years.

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.

Phased rollout and future steps

‍The UAE’s e-invoicing system will 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.

‍Public consultations for its e-invoicing data dictionary were conducted in Q1 2025, and ASP accreditations have since commenced. It's worth noting that the phased implementation deadlines in the UAE not only confirm the actual e-invoicing rollout but also include a separate deadline for taxpayers to appoint an Accredited Service Provider (ASP). For a detailed timeline, please refer to our dedicated blog post: UAE confirms phased e-invoicing mandate rollout.

This initiative forms part of the UAE’s broader 'e-billing system' project, which aims to streamline tax return automation and enhance tax compliance.

Other GCC countries: Progress and plans

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

Bahrain: Advancing towards e-invoicing implementation

‍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.

Oman: Preparing for a phased e-invoicing rollout

‍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. 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.

The Tax Authority has, in the meantime, confirmed a phased approach, with the top 100 largest taxpayers starting with a pilot programme in August 2026, and other large taxpayers expected to follow from February 2027.

Similar to the UAE, Oman will implement a decentralised 5-corner model, where only Oman Tax Authority (OTA)-Accredited Service Providers will be permitted to operate.

Qatar: Laying the groundwork for e-invoicing

‍Qatar, while having ratified the GCC VAT Framework Agreement, has not yet introduced VAT but is nevertheless making progress in e-invoicing. Following tenders for legal support and the development of a central e-invoicing platform by the Qatar General Tax Authority (GTA), Qatar’s Cabinet approved a draft e-invoicing law and its executive regulations on 6 May 2026, prepared by the Ministry of Finance in coordination with the GTA. The framework is intended to support electronic invoices and related notices, but the government has not yet published the final technical model, scope, or implementation timetable.

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. ​

Kuwait: Monitoring regional developments

‍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.​

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

Regional trends and challenges

‍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 standardisation, along with phased implementation approaches, are also notable trends. The use of technology, including AI, for anti-fraud measures is also increasing.

‍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.

The future of e-invoicing in the GCC

‍The GCC region is clearly on a path towards digitalising tax processes through e-invoicing. As countries implement and refine their systems, businesses need to stay informed and adapt to the changing landscape. Banqup 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.

Stay up to date

To ensure you stay informed about the evolving landscape of tax compliance and e-invoicing regulations worldwide, follow Banqup Group on LinkedIn. We provide updates and insights on global trends and best practices. For a comprehensive analysis and practical guidance on navigating international e-invoicing requirements, subscribe to our monthly update newsletter.