POS system for shops in Dubai & the UAE: VAT and the coming e-invoicing rules

If you run a shop, café or salon in Dubai, Abu Dhabi or Sharjah, your POS system handles more than billing. It must show VAT correctly today, and B2B sellers should prepare for the UAE's e-invoicing programme starting in 2027.

This is general information, not tax advice. Check the UAE Federal Tax Authority (FTA) and Ministry of Finance for current rules.

VAT on your POS receipts

The UAE's standard VAT rate is 5%. If you are VAT-registered, your POS should:

• Add VAT correctly to each item, including zero-rated or exempt items
• Print your Tax Registration Number (TRN) on receipts and tax invoices
• Produce full tax invoices for business customers when needed
• Give you VAT reports that make filing returns easier

The UAE e-invoicing programme

The UAE is introducing electronic invoicing for business-to-business (B2B) and business-to-government (B2G) invoices, using international Peppol standards and Accredited Service Providers (ASPs). Based on the published timeline:

• Large businesses (revenue of AED 50 million or more) — mandatory from 1 January 2027
• Other businesses — mandatory from 1 July 2027

Everyday sales to the public (B2C) are not currently in scope. But if your shop also sells to companies — for example a wholesaler or a supplier to restaurants — your invoicing system will need to work with an ASP.

What to look for in a UAE POS

1. Correct 5% VAT and TRN on every receipt
2. Arabic and English receipts
3. Card and digital wallet payments
4. Live stock and multi-branch support
5. B2B invoices that can connect to an e-invoicing provider
6. Sales reports you can see on your phone

Custom POS for UAE businesses

BrightExa Tech builds custom POS systems for businesses in Dubai and across the UAE, working online with a clear plan and updates on WhatsApp. See our POS system and our Dubai & UAE page.

Frequently asked questions

### Do small shops need e-invoicing in the UAE? The programme covers B2B and B2G invoices. Retail B2C sales are not currently in scope.

### Can the POS show prices including VAT? Yes. Prices can be shown including or excluding VAT, with VAT listed on the receipt.

Opening or upgrading a shop in the UAE? Get a free POS quote.