UAE Amends E-Invoicing Regulations to Reduce Operational Burden on Businesses

The UAE Ministry of Finance announced Ministerial Decision No. 197 of 2026, amending provisions of Ministerial Decision No. 243 of 2025 regarding the Electronic Invoicing System. The ministry stated that the amendments aim to provide greater clarity, support the system's phased rollout, and reduce operational burdens on companies operating across the Emirates.

Under the new decision, business transactions between members belonging to the same tax group are temporarily designated as excluded transactions for a 24-month period starting January 1, 2027. According to the ministry, this temporary relief gives corporate groups additional operational flexibility and time to adapt their internal invoicing mechanisms.

The decree also amends Article 11 by eliminating the rule requiring electronic invoice, credit note, and related data to be stored physically inside the UAE. Entities subject to the system must still retain all electronic billing records for the period stipulated under the Tax Procedures Law and make them available to the Federal Tax Authority upon request, shifting the regulatory focus to record retention and accessibility rather than geographic storage location.

Additionally, the ministry repealed Article 12 and removed the definition of system failure from Article 1, abolishing the previous obligation requiring companies to report any technical system failure to the Federal Tax Authority within two business days.

The regulatory updates took effect on October 1, 2026. They precede the approaching October 30 compliance deadline requiring companies with annual revenues of at least Dh50 million ($13.6 million) to appoint an accredited service provider ahead of the system's full rollout in 2027.