E-Invoicing in the GCC: Latest mandates and proposals

Many countries across the globe are working to achieve full digitalisation of critical finance processes – and for dozens of nations, this currently involves rolling out new e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing. mandates.

Think of e-invoicing as the bridge between businesses and the tax authority. It standardises how invoices are generated, submitted, and verified in real-time.

Gone are the days of manual paperwork and late reconciliations; instead, e-invoicing brings immediacy and accuracy to the forefront.

This way businesses gain more control over their financial processes, reduce operational inefficiencies, and avoid penalties caused by common errors.

And for tax authorities, e-invoicing minimises errors and reduces fraud, whilst providing unprecedented visibility into economic activity.

The GCC is no exception to the global move towards e-invoicing, so if your business operates in the bloc, understanding the role of e-invoicing is critical to avoiding compliance hiccups and staying ahead in a competitive market.

Let’s take a closer look at how e-invoicing is transforming the landscape for businesses in these countries.

E-invoicing mandates and proposals

Saudi Arabia – The first of the GCC countries to launch its e-invoicing regime in December 2021 through a phased approach. Having only introduced VAT on 1 January 2018, the country is already leading the way in digitising tax compliance in the Gulf Region.

As part of the government’s Vision 2030 initiative, spearheaded by Zakat, Tax and Customs Authority (ZATCA) is leading the charge in digitising tax processes through FATOORA, its mandatory e-invoicing system.

Bahrain – The Bahraini tax authority, The National Bureau for Revenue (NBR), is completing the design and build of a nation-wide B2B electronic invoicing system. It is possible that a phased B2B mandate will be announced for the end of 2025 or start of 2026.

Kuwait – In the early stages of developing an e-invoicing system with plans for a phased rollout in the coming years.

Oman – Following the path of other countries, the Oman Tax Authority (OTA) has announced its forthcoming e-invoicing regulations. The initial rollout was planned for 2024, however with no clear design or systems specifications it was postponed to 2025 and 2026.

Although the implementation has been delayed, businesses should stay proactive by closely monitoring official announcements from the OTA.

Qatar – Businesses can voluntarily create e-invoices, with mandatory implementation yet to be confirmed. E-invoices must comply with VAT regulations, and businesses issuing them must register with the Qatar Tax Authority (QTA).

United Arab Emirates – By July 2026, e-invoicing in UAE will become mandatory for B2B and B2GCommerce between business to government. transactions.

The UAE’s e-invoicing framework is built on the Peppol 5-corner model, ensuring a standardised and efficient invoicing system across businesses.

Challenges for businesses

While the advantages of e-invoicing are clear, many businesses have faced hurdles in adapting to the system.

1. One common issue is the lack of standardisation in internal tax systems. Many organisations still rely on fragmented or localised tax solutions, making it difficult to seamlessly integrate with a country’s specific requirements.
2. Another challenge lies in master data management. Errors in VAT registration numbers, supplier data, or tax codes can lead to invoice rejections, delays, and compliance risks. This highlights the importance of having accurate, up-to-date master data across all business functions.
3. With sensitive financial data flowing electronically, companies must address concerns related to data security and privacy.

How to simplify e-invoicing

Adopting e-invoicing in the GCC doesn’t have to be a daunting process. Here’s how businesses can get it right:

• Invest in Scalable Solutions: Choose an e-invoicing platform that integrates with your ERPEnterprise resource planning (ERP) is a type of software that organisations use to manage main business processes. system and meets compliance requirements.
• Focus on Master DataData about the business entities which provides context for business transactions.: Ensure VAT registration numbers, supplier information, and tax codes are accurate. Errors here lead to rejected invoices down the line.
  Tools like LimeLyte® Entity Manager can mass validate TRNs and ensure they meet their country-specific formatting requirements before they’re sent to tax authorities.
  
• Collaborate Across Teams: Tax, IT, and finance teams must work together to ensure your systems are ready for seamless e-invoicing.
• Stay up to date on the latest mandates: Equip your teams with the knowledge to navigate e-invoicing requirements confidently.

With the right tools and strategies, businesses can reduce errors, strengthen compliance, and focus on what really matters: growth.

As the global shift toward digitalised tax compliance continues, Saudi Arabia in particular is setting the standard, and businesses that embrace this evolution stand to gain the most.