Tax Star raises $1.75m seed round to scale as a pre-approved accredited service provider for UAE e-invoicing

Tax Star, the UAE's first AI-powered corporate tax software platform, announced it has closed a $1.75 million seed funding round. The raise comes as Tax Star positions itself around one of its most significant regulatory milestones to date, its status as a pre-approved Accredited Service Provider (ASP) for UAE e-invoicing. The round was backed primarily by angel investors.     

Tax Star built its reputation as the first AI-powered corporate tax compliance software in the UAE, helping businesses navigate the country's evolving tax landscape with automation and intelligence at the core of its product.

This new funding builds directly on that foundation, with the company now doubling down on its role in the UAE's e-invoicing rollout, a mandate will require businesses across the UAE to appoint an ASP and implement a compliant e-invoicing process connected to the UAE Electronic Invoicing System.

As a pre-approved ASP, Tax Star is positioned to serve as a trusted bridge between businesses and the UAE's e-invoicing infrastructure. Being pre-approved validates Tax Star's technical readiness ahead of key regulatory deadlines, and signals to the market that the company is positioned to capture demand as UAE businesses work to become compliant.

Proceeds from the round will be directed toward three core areas: go-to-market expansion, product development, and simplifying compliance for businesses navigating the UAE's e-invoicing requirements.

Rather than allocating the raise narrowly toward specific accounting-software integrations or new-market entry alone, Tax Star said the funding is designed to strengthen the of what businesses need to become, and stay, compliant.

The raise also supports Tax Star's broader regional ambitions. The company has stated plans to expand into the GCC as part of its longer-term roadmap.

The UAE's e-invoicing framework, and Tax Star's early positioning within it, is expected to serve as proof as the company pursues similar opportunities in other markets undergoing their own digital tax transformations.

Tax Star also acknowledges that being part of the Plug and Play and Dubai Founders HQ (DFHQ) start-up program helped Tax Star to prepare themselves for this investment round and helped refine its future expansion plans. The company is also part of the Microsoft for Startups Program and is aspiring to join Dubai's D33 initiative.

The timing of the raise aligns with a fast-approaching regulatory calendar. Businesses in the UAE with annual revenue of AED 50 million or more      face an ASP- appointment deadline of October 30, 2026, ahead of the first mandatory implementation phase for businesses with annual revenue of AED 50 million or more in January 2027.

Tax Star said the new funding is intended to help ensure UAE businesses, regardless of size, are equipped to meet these deadlines without disruption to their operations.

"This funding allows us to focus on what matters most right now: easing the compliance burden for businesses across the GCC as e-invoicing becomes a reality," said Rayhan Aleem, Co-founder and CEO of Tax Star. "Being a pre-approved ASP puts us in a strong position to support businesses through this transition, and this raise lets us invest in the team, the product, and the go-to-market work needed to do that at scale."

Tax Star is the UAE's first AI-powered corporate tax software platform and a pre-approved Accredited Service Provider for UAE e-invoicing. The company is also the only Accredited Service Provider listed on the Xero and QuickBooks App Stores offering native integration with those accounting platforms, alongside smooth integrations with Zoho, Odoo, and Naqood. Tax Star helps businesses simplify tax and compliance obligations through automation and AI, with plans to expand its footprint across the GCC and into Europe.