# UAE VAT and E-Invoicing Design

- VAT codes are configurable: standard, zero-rated, exempt, out-of-scope and reverse charge.
- The seeded 5% code is a default, not a hardcoded decision for every transport service.
- Recoverable and nonrecoverable input VAT are separated.
- VAT reports must reconcile tax-code transaction detail to the general ledger before period finalisation.
- Production e-invoicing is disabled by default.
- The internal boundary requires an accredited service-provider adapter; it does not claim a direct government connection.
- Provider credentials must be encrypted and separated by sandbox/production.
- Structured payload, hash, request, response, message ID, validation errors, retries and status history are retained.
- Official schemas, scope, thresholds and dates must be read from configuration and revalidated before go-live.

Legal and tax review remains mandatory before production use.


## Current configured implementation milestones

- Pilot start: 1 July 2026.
- Annual revenue of AED 50 million or more: provider appointment deadline 31 July 2026; mandatory implementation 1 January 2027.
- Annual revenue below AED 50 million: provider appointment deadline 31 March 2027; mandatory implementation 1 July 2027.
- In-scope government entities: mandatory implementation 1 October 2027.

These values are environment-configurable and must be revalidated against official decisions before production activation.