Format of an E-Invoice in the UAE: A Complete Guide for Businesses

If you’re one of those who still think sending invoices as PDFs or Excel sheets in 2025 is enough, then let us remind you that the UAE’s latest tax regimes will definitely change your mind. The Ministry of Finance has taken a bold leap towards complete digital compliance, making e-invoicing the new normal for every VAT-registered business.

Hence, across the UAE, businesses are rapidly moving away from manual invoicing toward standardized formats under the Peppol PINT AE framework, which is built to align with global best practices. This means every invoice you issue must meet strict data and format standards, be validated by Accredited Service Providers (ASPs), and be instantly reportable to the Federal Tax Authority (FTA).

But if you’re already a Tally Prime user, then specifically for you, this change means nothing to fear. Rather, it’s a chance that helps to modernize your invoicing workflow and stay fully compliant.

How does e-invoicing work in the UAE?

The UAE has introduced a structured process for e-invoicing whereby invoices must be issued in machine-readable format and exchanged through accredited channels. Essentially, businesses (you) generate an e-invoice through your system, it goes via an Accredited Service Provider (ASP), is validated, then delivered to the buyer and reported to the Federal Tax Authority (FTA).

• The UAE Data Dictionary: It provides a detailed catalogue of the data fields required for e-invoicing in the UAE.

• The PINT AE specification (a specialization of the international Peppol standard): It gives the technical structure and schema for machine-readable invoices in the UAE.

What’s important: So, using a reliable software like Tally Prime, you’ll need to ensure the generation of invoices in compliant machine-readable formats, the required fields are correctly populated, and integrate with one of the accredited ASPs so your invoices are validated and transmitted accordingly.

E-invoice Format in the UAE

1. Invoice header

• IBT-001 (The Invoice Number): This is a unique ID for the invoice.

• IBT-002 (The Invoice Issue Date): It means the date with YYYY-MM-DD format, when the invoice was issued.

• IBT-003 (The Invoice Type Code): It lets you understand if it’s a tax invoice, a debit note, or a credit note, etc.

• IBT-005 (The Currency Code): You get to know the currency in which amounts are expressed (AED, USD, and more).

2. Seller and buyer details

• IBT-027 (The Seller Name): It must include the name of the seller

• IBT-044 (The Buyer Name): This section will contain the buyer’s name.

• IBT-031 / IBT-048 (The TRNs): This is for the Tax registration numbers for the seller and buyer, respectively.

• IBT-034 / IBT-049 (Electronic Addresses): Electronic contact or communication address for seller and buyer.

• IBG-05 / IBG-08 (Postal Address Groups): These are the physical postal address groups for identification of seller and buyer that include Emirates codes.

3. Line items (goods or services supplied)

• IBT-153 / IBT-154: These fields cover item descriptions with their names.

• IBT-129 / IBT-146: These fields refer to quantity, unit price, and total for line items.

• IBT-151 / IBT-152: It includes the exact rate of VAT along with the product’s tax category.

• IBT-158 (HSN Code): Harmonised System Nomenclature code for goods.

• BTUAE-17 (SAC): Service Accounting Code for services.

4. Breakdown of tax

• IBT-116: The amount subject to tax (Before tax value).

• IBT-117: This is for the tax amount, meaning the actual tax/VAT charged.

• IBT-118: It includes the category of tax (standard rate, zero-rated, reverse charge, or exempt).

• IBT-119: It’s the percentage of the rate applied (for the goods or services).

5. Totals and payment details

• IBT-109: It’s for the subtotal before tax.

• IBT-110: This is the total tax inclusive (Total amount of VAT).

• IBT-112: Another total field that includes the grand total, including the VAT amount.

• IBT-115: This field is for the final amount that is payable.

• IBT-081: It’s for the code representing the methods of payment (bank transfer, card, etc).

Types of Fields

Remember, each field of the UAE e-Invoicing system carries a different value. For example, some of them are mandatory, and some are optional. 

So, within the PINT AE Data Dictionary framework, the fields fall into three categories:

1. Mandatory fields:

These must always be included whenever you issue an e-invoice for the given use case.

• IBT-001
• IBT-002
• IBT-031 / IBT-048
• IBT-116
• IBT-117
• IBT-112

2. Optional fields:

You can include them only if you have the data and the transaction demands it.

• IBT-072: The delivery date
• IBG-32: Characteristics of the items
• IBT-159: Country of origin (Goods)

3. Conditional fields:

Filling these fields is only important under special circumstances. For example:

• BTUAE-04: The exchange rate field applies if the currency is other than AED.

• BTUAE-17: Service Accounting Code applies to services rather than goods.

• BTUAE-15: The Seller registration identifier type may apply when the seller uses a special identifier (legal registration ID).

• IBT-111: Total tax in accounting currency if currency conversion is involved.

The Way of Structuring and Submitting an E-invoice in the UAE

XML invoices: Instead of issuing a simple PDF or Word file, you must issue the invoice in the XML schema defined under PINT AE. This ensures machine readability.

Follow the schema: Always use the correct tags, field names, and formats as defined by the PINT AE specification.

Use codes and formats: Your currency codes must follow ISO standards, HSN codes must be accurate, date formats must match YYYY-MM-DD, and more. Overall, you must maintain the exact codes.

The Validation and Approval of E-Invoicing

The validation path is predictable but strict, so let's find out the process.

• Invoice generation

• Validation by service providers

• Secure delivery to the buyer

• Reporting to the Federal Tax Authority

Response notification: After reporting, a Message Level Status (MLS) is returned indicating successful submission or rejection/error. This means you, as the seller, will receive feedback on compliance.

Here’s What You Must Remember

• The UAE’s e-invoicing system is mandatory for B2B and B2G under the upcoming rollout.

• The format is standardized, and you must issue invoices in an approved machine-readable form, with predefined fields.

• A clear breakdown of fields, including invoice header, seller & buyer details, line items, tax breakdown, totals & payment means is mandatory.

• Fields are classified as mandatory, optional, and conditional. You must know which of your transactions fits.

Lastly, always remember, preparation is key. So, update your software, map the fields, select ASP, and finally test use-cases. Remember, the UAE’s move to e-invoicing aims towards greater digital oversight, but for you, it also offers an opportunity for cleaner data and fewer invoice rejections.