While electronic invoicing is a proven way to make B2B transactions faster and more accurate, it is also the solution that complies with the UAE law. Legislation addressing the lawfulness of such electronic transactions has been in place for some time already in the UAE, making electronic invoices as legitimate as paper invoices – it’s all about meeting certain criteria.
How to use electronic invoicing in B2B transactions under the UAE law?
When dealing in trade, your working days revolve around exchanging big volumes of transaction documents with business partners. Among such transaction documents, fiscal invoice or debit note are considered to be the key accounting evidence.
In the UAE, the use of electronic invoicing is governed by Federal Law No. (1) of 2006 On Electronic Commerce and Transactions. There are three essential properties that each electronic invoice in the UAE should demonstrate:
|Essential elements of an e-invoice||Tech measures ensuring compliance|
|Maintaining the electronic document in the same format as it was created, sent or received, .i.e. making sure that the invoice content cannot be altered.||Timestamp applied on each e-invoice guarantees that the document has stayed unchanged since its creation and is available to be displayed online or printed.|
|Electronic invoice needs to be available in a format that allows readability.||There is secured online access to e-invoices to be displayed and available to download as PDFs.|
|Authenticity of the origin needs to be guaranteed.||For each electronic invoice, there is an original file available to download anytime. Certified electronic signature is used to identify issuer, authenticate and verify data electronically.|
Archiving e-invoices in compliance with the UAE law
The arrival of VAT in the UAE made the archiving of invoices (among other transaction docs) more important than ever. Under the Tax Procedures Law, VAT-registered companies have to keep invoices for an extended period of time – current year plus 5 years. This is where electronic invoicing can help.
By archiving invoices digitally, it is possible to identify the issuer, block any modifications and guarantee document readability. Also, during a tax audit, companies with the e-archive are able to grant temporary access to the Federal Tax Authority and instantly retrieve documents.
UAE companies looking to launch electronic invoicing with supply chain partners need to be sure that they entrust electronic invoicing services with the provider that meets all legal requirements imposed by the UAE legislative bodies.
About Infinite IT Solutions:
Infinite IT Solutions has been working in the area of e-invoicing for over 15 years. Its strong background, highly secured infrastructure and countless e-invoicing projects across the globe make Infinite IT Solutions a reliable e-invoicing partner.