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Federal Tax Authority

Policy & Legal Updates
Source: Khaleej Times

UAE Updates E-Invoicing Rules and Issues Guidance on Employee Expense Deductions

The UAE Ministry of Finance issued Ministerial Decision No. 197 of 2026, removing mandatory transaction pre-approvals and offering a two-year transitional exemption for internal cross-entity transactions under the Electronic Invoicing System. Concurrently, Federal Tax Authority Decision No. 17 of 2026 clarifies corporate tax and VAT rules for deductible employee expenses including transport, accommodation, and mobile devices.

Policy & Legal Updates
Source: Naqood

UAE Ministry of Finance Issues Decision 197 on E-Invoicing Relief

The UAE Ministry of Finance has issued Ministerial Decision No. 197 of 2026, granting compliance relief under the federal electronic invoicing system. Transactions within the same VAT tax group receive a 24-month exclusion starting January 1, 2027, and physical domestic storage requirements for archives have been lifted. The rule requiring companies to notify the tax authority of system failures within two days has also been eliminated.

Policy & Legal Updates
Source: Khaleej Times

UAE Companies Urged to Meet October 30 Electronic Invoicing Compliance Deadline

UAE businesses generating Dh50 million or more in annual revenue must appoint an Accredited Service Provider by October 30 ahead of mandatory B2B electronic invoicing on January 1, 2027. The Federal Tax Authority warned that non-compliance could lead to administrative penalties. Smaller businesses with annual revenues below Dh50 million must appoint a provider by March 31, 2027, with implementation set for July 1, 2027.

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