Compliance
What is the UAE FTA Phase 1 mandate
Background
The UAE Federal Tax Authority (FTA) is implementing mandatory electronic invoicing (eInvoicing) for VAT-registered businesses in phases. Phase 1 focuses on structured digital invoice transmission via the Peppol network.
Who is affected
All businesses registered for UAE VAT are subject to the mandate. The FTA is rolling out compliance requirements in waves based on business size and sector.
Even if your specific wave has not yet been announced, adopting eInvoicing now ensures compliance readiness and gives you time to test your setup.
What Phase 1 requires
1. Structured invoice format — Invoices must conform to the PINT AE standard (Peppol International — UAE), which is based on the international Peppol BIS 3.0 specification 2. Peppol network transmission — Invoices must be sent and received via the Peppol four-corner model through accredited Access Service Providers (ASPs) 3. FTA-registered ASP — You must use an ASP that is registered with the UAE FTA
How Wazeh360 ensures compliance
- Generates invoices in PINT AE format automatically
- Validates every invoice against FTA rules before transmission
- Transmits via the Peppol network through our accredited ASP integration
- Maintains a full audit trail per FTA requirements (7-year record retention)
- ASP appointment certificate available in Settings → Compliance
Consequences of non-compliance
Failure to comply with the FTA eInvoicing mandate can result in administrative penalties. The FTA has not yet published specific penalty amounts for Phase 1 but recommends immediate compliance.
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