UAE E-invoicing with Microsoft Dynamics 365 Business Central

Overview

The UAE e-Invoicing framework represents a major step towards the digital transformation of business transactions and tax compliance. It introduces a structured digital approach for invoice generation, exchange and tax reporting.

To support compliance with this framework, Microsoft Dynamics 365 Business Central connects with approved e-Invoicing platforms and Access Points to streamline the end-to-end invoice process. Businesses can continue managing financial activities within Business Central while ensuring invoices comply with UAE e-Invoicing requirements for creation, validation, exchange and reporting.

Key Integration Capabilities

Integration between UAE e-Invoicing and Business Central can support:

Automated e-Invoice generation from Business Central

Conversion into UAE-compliant invoice formats

Invoice validation and compliance checks

Secure transmission through Taxilla ASP

Automated customer invoice exchange

Status tracking and response handling

Reduced manual processing and operational effort

How Business Central Connects with UAE e-Invoicing

Microsoft Dynamics 365 Business Central serves as the primary ERP platform where business transactions are created and managed. Taxilla acts as the Access Point Provider (ASP), facilitating secure invoice exchange between Business Central, customers and the UAE e-Invoicing network.

E-Invoicing Operating Model

The UAE adopts a secure exchange model based on certified Access Points that connect invoice issuers, recipients and the Federal Tax Authority (FTA). Electronic invoices must be issued and exchanged in a structured digital format that allows automated processing and validation.

Mandatory fields in a PINT AE Tax Invoice

A PINT AE Tax Invoice (Peppol International Invoice – UAE specification) requires specific mandatory information to ensure the invoice can be validated, exchanged electronically and reported as part of the UAE e-Invoicing framework.

For Microsoft Dynamics 365 Business Central with Taxilla ASP integration, these mandatory fields are typically mapped from Business Central master data and transaction documents, including Customer/Vendor master records, VAT posting setup, Item and service details, Sales invoice headers and lines and Payment terms.

Ensuring these fields are correctly maintained in Business Central helps avoid invoice validation failures during submission through the Taxilla e-Invoicing network.

Invoice Creation in Business Central

Sales invoices are generated within Business Central using existing finance and sales processes. Key invoice information, including customer details, transaction values and VAT information is captured within Business Central.

Business Central performs an initial validation check on all mandatory invoice fields to ensure compliance with UAE e-Invoicing requirements before the invoice data is transmitted to the Taxilla ASP.

The same validation and submission process applies to Credit Memos to ensure they also meet the required e-Invoicing standards before being processed through the Taxilla platform.

Integration with the ASP

The integration between Business Central and Taxilla enables automated extraction of invoice data from Business Central. The invoice information is transformed into the required UAE e-Invoicing format and prepared for validation and submission.

Invoice Validation and Compliance Checks

Taxilla performs required validation checks to ensure invoice data meets UAE e-Invoicing standards. This includes verifying mandatory fields, tax information and structured invoice requirements before submission.

Secure Invoice Exchange

Once validated, Taxilla securely transmits the electronic invoice through the UAE e-Invoicing network to the buyer’s Access Point and the FTA. This enables automated and reliable exchange of invoices between trading partners and the Tax Authority.

Response Management and Status Updates

Taxilla manages responses received through the e-Invoicing network including invoice acceptance, rejection or processing updates. These statuses can be synchronized back into Business Central, providing users with visibility throughout the invoice lifecycle.

Once validated, the Taxilla ASP returns a response code which is updated against the Sales Invoice, following which the sales invoice is converted into a Posted Sales invoice in Business Central.

Summary

The integration of Microsoft Dynamics 365 Business Central with Taxilla ASP provides businesses with a streamlined approach to adopting UAE e-Invoicing. By combining Business Central’s financial capabilities with Taxilla’s secure e-Invoicing connectivity, organizations can automate invoice exchange, improve compliance and support a more efficient digital finance ecosystem.

Contact Us

Contact Address:

Reach out today and let’s start discussing your business goals. Connect with us now to explore how our solutions can elevate your business operations.