E-Invoicing in Yemen: Mandate Status, Sales Tax and Compliance Risks
Author
Shamyudha
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Cargo landing at Aden or Hodeidah enters one country but meets two tax offices and two banknotes. The Tax Authority (Maslahat al-Daraib) collects General Sales Tax, administered separately in government-controlled and Sanaa-controlled areas. E-invoicing in Yemen has no legal basis, and official information is limited and mostly in Arabic.
Yemen has no e-invoicing or clearance mandate, and no platform, format or go-live date exists. Registered sellers and importers charge General Sales Tax, mostly at 5%, on the Tax Authority's invoice form. They file a monthly return within 21 days after each month ends.
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{{__MONITORING_PAGES_GROUP:blog_articles_648__}}The UN Yemen sanctions measures run until November 14, 2026, after Resolution 2801 renewed them. The Security Council must decide on renewal by then. Rescreen Yemeni partners against the 2140 Committee measures after the vote, since an outdated check can stall bank payments.
What is e-invoicing and why has Yemen adopted it?
E-invoicing is the exchange of invoices as structured data that software can read without retyping.
Yemen has not adopted it, so there is no clearance model, platform or format. Invoices stay on the Tax Authority's prescribed form, and no official digitalisation plan could be found.
The evolution of e-invoicing in Yemen
![Timeline of Yemeni sales tax invoicing and compliance milestones from 2001 to 2025]](https://payload-cms-dun.vercel.app/api/media/file/yemen-timeline.svg?2026-11-10T08:03:06.770Z)
- 2001 to 2005: Law No. 19 of 2001 creates General Sales Tax; Law No. 42 of 2005 sets the 5% rate.
- January 2020: Sanaa-controlled areas ban the newer rial banknotes issued in Aden, creating two exchange rates.
- 2023: the UN Panel of Experts reports double taxation and the illicit collection of taxes and fees.
- March 5, 2025: the US designation of Ansarallah as a Foreign Terrorist Organization takes effect.
- November 14, 2025: Resolution 2801 renews UN measures until November 14, 2026.
B2G e-invoicing in Yemen
There is no B2G e-invoicing mandate, portal or format. Suppliers invoice public bodies directly, so confirm which administration each buyer answers to. Teams using B2G e-invoicing portals elsewhere need no Yemeni connection.
B2B e-invoicing in Yemen
B2B e-invoicing is not mandatory. Registered sellers issue one sales invoice (fatura al-bay') per sale on the Tax Authority's form, keeping a copy (Article 11). The form could not be found online, so confirm its tax number and numbering fields with a VAT invoice checklist.
Sellers register once prior-year taxable sales reach at least YER 50 million for goods or YER 40 million for services. Importers register whatever their volume. If a foreign supplier has no Yemeni tax representative or agent, the recipient self-assesses the tax (Article 34).
Tax and customs run as parallel administrations in Aden and Sanaa. The UN Panel of Experts documented double taxation on goods moving between them. On November 8, 2026, unofficial rates were YER 533 per dollar in Sanaa and YER 1,597 in Aden, per the ACAPS tracker.
- Register with the tax office for each area where you trade.
- Issue one sales invoice per sale on the official form, stating the rial rate used.
- Self-assess tax on imported services from unrepresented suppliers.
- Screen counterparties against the UK Yemen regime and US lists.
B2C e-invoicing in Yemen
B2C e-invoicing is not mandatory, and no fiscal device or e-receipt rule applies. Retailers issue the same sales invoice, and Law No. 14 of 2004 taxes mobile, international telecom and advertising at 10%. With no fiscalization regime, a POS integration needs no certification, while general B2C invoice requirements still guide receipts.
E-reporting and VAT compliance
Yemen has periodic reporting: registered sellers file a General Sales Tax return every month, even when no tax is due. No online portal could be confirmed; electronic tax reporting shows how this differs from e-invoicing.
General Sales Tax (GST) works like a VAT, with input tax deducted from output tax. The general rate is 5% on local and imported goods and services under Article 4 of the amended law. Exports and other Schedule 2 items are zero-rated, listed items are exempt, and each administration may apply its own instructions.
The monthly return is due within 21 days after month end, with proof of full payment. No official credit note guidance could be found. Article 54 requires three years of records after the fiscal year, kept in Yemen if electronic, which shapes invoice archiving.
Penalties for non-compliance
Yemen sets no e-invoicing penalties; fines come from Articles 33 to 53 of the General Sales Tax Law.
Offence | Penalty |
|---|---|
Late return | 2% of unpaid tax per month or part month, capped at 20% (Article 33) |
Late payment | Additional 1% of unpaid tax per month or part month (Article 33) |
Invoice violations or return understated by up to 10% | YER 5,000 to YER 50,000, plus tax due (Article 43) |
Tax evasion, first offence | YER 50,000 to YER 250,000 (Articles 45 and 46) |
Repeat evasion | Fine doubled; a third offence within a year: maximum fine, 3 to 6 months' prison, or both |
Evaded goods | Confiscation, or their value if not seized (Article 53) |
Dealing with designated persons | Assets freeze and penalties under UN, US, UK and EU Regulation 1352/2014 measures |
Taxes or fees paid to authorities controlled by a designated group may breach sanctions. Licences exist, but OFAC humanitarian guidance shows their conditions are narrow, so take specialist legal advice before paying any Yemeni authority.
FAQs
Is e-invoicing mandatory in Yemen?
No, Yemen has no e-invoicing or clearance mandate, platform, format or go-live date today. Registered sellers still issue sales invoices on the Tax Authority's form and file monthly tax returns.
What is the General Sales Tax rate in Yemen?
The general rate is 5% on local and imported goods and services under amended Law No. 19. Listed telecom and advertising services carry 10%, while exports and other Schedule 2 items are zero-rated.
When is the Yemeni sales tax return due?
Registered sellers file a monthly return within 21 days after the month ends, even with no tax due. The return needs proof of full payment, and late filing adds 2% of unpaid tax monthly.
Why do sanctions matter when invoicing in Yemen?
Ansarallah is a US-designated Foreign Terrorist Organization, and UN measures target listed persons linked to Yemen. Payments to designated authorities may breach UK sanctions rules and others, so take specialist legal advice first.