UAE amends e-invoicing rules and eases data storage requirements

The UAE's Ministry of Finance has announced amendments to its electronic invoicing system governing value-added tax filings. Under the new rules, transactions between entities belonging to the same tax group will receive a temporary two-year exclusion starting January 1, 2027. The ministry stated that these transactions will be classified as 'excluded transactions' for the 24-month timeframe to allow businesses more flexibility and time to adapt.

The regulatory update also revises Article 11, which governs the storage of electronic invoices and credit notes. Entities must retain all electronic records and associated data for the duration specified by the Tax Procedures Law and provide them to the Federal Tax Authority upon request. The revision removes the prior requirement mandating that data be stored domestically within the UAE, shifting focus to record retention and accessibility.

In addition, the ministry removed the requirement that previously obliged companies to report system failures to the Federal Tax Authority within two business days. The ministry stated that the adjustments are designed to lower operational burdens, enhance ease of doing business, and provide flexibility during the implementation of the e-invoicing network.

The compliance updates precede a major milestone in the UAE's phased rollout. Businesses with annual revenue of Dh50 million ($13.6 million) or more face an extended deadline of October 30, moved from July 1, to appoint an accredited service provider (ASP) under Phase 1, through which all qualifying transactions must be validated and transmitted.