Supported business processes
This topic covers the business processes Sovossupports for United Arab Emirates (UAE) electronic invoicing, including all 16 Phase 1 use cases, excluded transactions, and configuration formats.
The UAE electronic invoicing mandate uses a five-corner Pan-European Public Procurement On-Line (PEPPOL) network model. This means invoice exchange and tax reporting happen in a single, connected process across five parties: the supplier, the SovosAccess Service Provider (ASP), the buyer ASP, the buyer, and the Federal Tax Authority (FTA).
Business process model
The UAE uses a five-corner Pan-European Public Procurement On-Line (PEPPOL) network model with a decentralized structure based on Accredited Service Providers (ASPs).
- Process flow
- The invoice moves through the following steps:
- The supplier creates the invoice and sends it to SovosCompliance Network (CN).
- Sovos Compliance Network routes the invoice to Sovos ASP.
- Sovos ASP validates the invoice against UAE PINT standards and transmits it through the PEPPOL network.
- The buyer ASP receives the invoice and makes it available to the buyer.
- In parallel, Sovos ASP reports sales tax data to the Federal Tax Authority (FTA) using the Tax Data Document (TDD).
- The buyer ASP independently reports purchase tax data to the FTA to support input tax credit validation.
- Both Sovos ASP and buyer ASP independently report tax data to the FTA.
- The FTA receives sales data from Sovos ASP and purchase data from buyer ASP to support tax reporting and input tax credit validation.
Supported use cases
Sovos supports all 16 use cases defined in the UAE mandate for Phase 1 B2B/B2G transactions.
| # | Use case | Description |
|---|---|---|
| 1 | Standard tax invoice | Standard B2B/B2G tax invoice with mandatory and commonly used optional fields |
| 2 | Reverse charge mechanism | Supply under reverse charge where the buyer accounts for VAT |
| 3 | Zero-rated supplies | Supplies at 0% VAT (international transport, investment precious metals, specified real estate, education, healthcare) |
| 4 | Deemed supply | Business assets used for non-business purposes |
| 5 | Disclosed agent billing | Agent acting on behalf of a principal (disclosed arrangement) |
| 6 | Summary tax invoice | Consolidated invoice for multiple supplies to the same counterparty |
| 7 | Continuous supplies | Periodic invoicing for ongoing supplies (utilities, subscriptions) |
| 8 | Free trade zone | Supplies involving UAE Free Trade Zones |
| 9 | E-commerce supply | Supplies made through electronic commerce platforms |
| 10 | Exports | Export of goods outside the GCC region |
| 11 | Margin scheme | VAT on margin for second-hand goods, art, antiques |
| 12 | Standard tax credit note | Credit note for adjustments or returns |
| 13 | Agent credit note | Credit note for disclosed agent billing |
| 14 | Commercial invoice | Invoice for out-of-scope or non-VAT transactions |
| 15 | Self-billing invoice | Buyer issues invoice on behalf of supplier |
| 16 | Self-billing credit note | Credit note issued by buyer in a self-billing arrangement |
Excluded transactions
The following transactions are currently outside the scope of the UAE e-invoicing mandate:
- B2C transactions
- G2B transactions (applicable in a second phase)
- Import transactions
- Sovereign activities of government entities not competing with the private sector
- International airline passenger transportation (where an Electronic Ticket is issued)
- Ancillary airline services (where an Electronic Miscellaneous Document is issued)
- International cargo airline transport by Airway Bill (24-month temporary exclusion)
- VAT-exempt or zero-rated financial services
- Any other transactions as determined by the Minister of Finance
For a full and current list, see the official guidelines.
Products
The UAE mandate uses a single ASP to handle both sending and receiving invoices.
| Product ID | Description |
|---|---|
ae_invoice_1.0 | Invoices and credit notes sent and received from buyers and suppliers |
Configuration formats
| Format ID | Document type |
|---|---|
AE-SCI-1.0-INVOICE-1.0 | Sovos Canonical Invoice (Sovos Canonical Invoice) input format |
AE-PINTAE-2.1-INVOICE-1.0 | PINT-AE invoice and credit note |
AE-PINTAE-2.1-CREDITNOTE-1.0 | PINT-AE credit note |
AE-PINTAE-2.1-SELFBILLING-1.0 | PINT-AE self-billing invoice and self-billing credit note |
- Submitting in Sovos Canonical Invoice format
Use
AE-SCI-1.0-INVOICE-1.0if you submit in Sovos Canonical Invoice format. Sovos transforms Sovos Canonical Invoice to PINT-AE before passing the document to the PEPPOL Access Point.If you need a custom format, contact your Sovos representative.