Kenyan-based tech company, DigiTax, is making significant strides by launching its electronic invoicing and tax-compliance services in the United Arab Emirates (UAE). This move comes after receiving preliminary approval from the UAE Ministry of Finance, allowing them to function as an e-invoicing service provider. This expansion highlights DigiTax’s commitment to international growth as the UAE gears up for mandatory electronic invoicing.

Expansion into the UAE Market

DigiTax, operated by Namiri Technology, made the announcement on Wednesday, indicating the company’s eagerness to tap into the UAE’s evolving digital landscape. The new office in Dubai has already begun recruiting local talent across various functions such as sales, account management, customer service, and technical support. This reflects the company’s strategy to ensure immersive local engagement and effective service delivery.

As the UAE transitions from traditional invoicing methods to a more streamlined digital approach, businesses will be required to leverage recognized service providers for electronic invoice validation and tax information submission to the Federal Tax Authority. The framework is designed to enhance digitalization, improve operational efficiency, foster transparency, and maintain secure tax compliance while minimizing VAT leakage. In this context, DigiTax sees immense potential based on its past experiences in markets with similar digital tax initiatives.

Experience and Operations

Established in Kenya in 2022 by Caine Wanjau and Thuku wa Thuku, DigiTax connects businesses’ invoicing systems directly to tax agencies’ platforms. With an established presence in Kenya and Zambia, DigiTax is rapidly expanding its footprint across Africa. The company holds a license in Kenya and is recognized as a third-party integrator by the Kenya Revenue Authority, which verifies its expertise in the local electronic tax invoicing ecosystem.

Since its inception, DigiTax has processed over $20 billion in invoices, supporting a diverse client base that includes large enterprises and independent businesses. With the UAE’s move toward mandatory electronic invoicing looming, DigiTax sees this as an opportune time to establish its presence in the region. The UAE Ministry of Finance has mandated that businesses with annual revenues exceeding AED 50 million implement the system starting January 1, 2027, while smaller businesses are expected to follow suit by July 1, 2027.

Competitive Landscape and Future Outlook

In addition to DigiTax, the UAE Ministry of Finance is working to create a competitive market for e-invoicing service providers. As of May, 32 providers have been approved, with more undergoing final assessments. DigiTax is operating through Namiri Technology Services L.L.C., having gained pre-approval status, though it is still awaiting final accreditation from the UAE Ministry of Finance.

Caine Wanjau, CEO and co-founder of DigiTax, expressed excitement about expanding into the UAE, a country renowned for its forward-thinking approach. He emphasized the company’s enthusiasm for contributing to the digital transformation taking place in the UAE’s economy, aiming to support both established businesses and emerging entrepreneurs in their growth journey.

As DigiTax navigates this new market, it seeks to leverage its experience and expertise to help businesses efficiently transition to mandatory electronic invoicing, aligning with the UAE’s vision for a digitally advanced economy.