The final months of 2026 are an important preparation period for businesses in the UAE. The phased introduction of eInvoicing is approaching, while international tax developments continue to place greater demands on tax data, reporting and governance.
Businesses operating across the Middle East also face different implementation timelines in neighbouring markets. Understanding where action is required can help tax and finance leaders allocate resources before deadlines converge.
Businesses subject to the eInvoicing system with annual revenues exceeding AED 50 million have until 30 October 2026 to appoint an Accredited Service Provider (ASP), following an extension announced by the Ministry of Finance. Mandatory implementation for this group is due to begin from 1 January 2027.
Preparation should cover the full invoice lifecycle. Businesses should confirm which entities and transactions are affected, assess ERP and billing systems, review mandatory data fields and identify gaps in customer, supplier and tax master data.
Finance, Tax and IT teams should also have clear responsibilities for provider selection, integration, testing and exception management.
The Decision also requires businesses to maintain a documented verification policy and evidence of the checks performed. These requirements make supplier onboarding, procurement and accounts payable controls an important VAT compliance priority ahead of 1 October 2026.
Qatar has launched Pillar Two registration through the Dhareeba Tax Portal. Bahrain has published practical guidance for its first DMTT return cycle, while Kuwait is progressing through the implementation of its DMTT regime.
Oman's Fawtara eInvoicing programme entered its first implementation phase in August 2026. Saudi Arabia's current Tax Amnesty window runs until 31 December 2026, subject to the applicable conditions and exclusions. Lebanon's 2026 Budget Law has also introduced changes affecting areas including VAT compliance and refunds.
These developments create different priorities for different entities within the same regional group.
For wider support, explore BDO UAE eInvoicing solution.
BDO UAE supports businesses in assessing the impact of evolving tax requirements, identifying readiness gaps, developing practical implementation roadmaps, designing policies and delivering training.
SPEAK TO AN EXPERT
Businesses operating across the Middle East also face different implementation timelines in neighbouring markets. Understanding where action is required can help tax and finance leaders allocate resources before deadlines converge.
UAE eInvoicing moves closer to implementation
For businesses in the UAE, eInvoicing is one of the most immediate tax transformation priorities.Businesses subject to the eInvoicing system with annual revenues exceeding AED 50 million have until 30 October 2026 to appoint an Accredited Service Provider (ASP), following an extension announced by the Ministry of Finance. Mandatory implementation for this group is due to begin from 1 January 2027.
Preparation should cover the full invoice lifecycle. Businesses should confirm which entities and transactions are affected, assess ERP and billing systems, review mandatory data fields and identify gaps in customer, supplier and tax master data.
Finance, Tax and IT teams should also have clear responsibilities for provider selection, integration, testing and exception management.
UAE announces Pillar Two registration deadline
In August 2026, the UAE Federal Tax Authority has published the Pillar Two Scope and Registration Guide, outlining the MNE Groups and entities subject to Pillar Two and the related registration requirements. Most importantly, for UAE entities having fiscal year ending before 30 April 2026, it is required to submit registration application on or before 30 November 2026.New UAE VAT verification requirements take effect from 1 October 2026
The UAE Federal Tax Authority's Decision No. 13 of 2026 introduces mandatory measures for verifying the validity and integrity of suppliers and supplies before input VAT is recovered. Businesses will need to undertake and document supplier due diligence, including identity and business verification, enhanced checks for higher-value suppliers and supply-level checks covering factors such as commercial rationale, pricing, licensing and payment methods.The Decision also requires businesses to maintain a documented verification policy and evidence of the checks performed. These requirements make supplier onboarding, procurement and accounts payable controls an important VAT compliance priority ahead of 1 October 2026.
What is changing elsewhere in the Middle East?
For UAE-headquartered groups with regional operations, several developments deserve attention.Qatar has launched Pillar Two registration through the Dhareeba Tax Portal. Bahrain has published practical guidance for its first DMTT return cycle, while Kuwait is progressing through the implementation of its DMTT regime.
Oman's Fawtara eInvoicing programme entered its first implementation phase in August 2026. Saudi Arabia's current Tax Amnesty window runs until 31 December 2026, subject to the applicable conditions and exclusions. Lebanon's 2026 Budget Law has also introduced changes affecting areas including VAT compliance and refunds.
These developments create different priorities for different entities within the same regional group.
What should UAE businesses do now?
Businesses should use the remaining months of 2026 to prepare for the UAE's upcoming tax requirements, with a focus on eInvoicing readiness, Pillar Two registration and the new VAT verification requirements. With less than one month until 1 October 2026, businesses should assess whether their existing supplier onboarding, procurement and accounts payable controls are sufficient to meet the new FTA requirements, while ensuring that responsibilities and supporting documentation are clearly defined.For wider support, explore BDO UAE eInvoicing solution.
BDO UAE supports businesses in assessing the impact of evolving tax requirements, identifying readiness gaps, developing practical implementation roadmaps, designing policies and delivering training.
SPEAK TO AN EXPERT