UAE Amends E-Invoicing Rules With Tax Group Exclusion and Storage Changes

The UAE Ministry of Finance has amended the regulations governing its Electronic Invoicing System through Ministerial Decision No. 197 of 2026, which amends Ministerial Decision No. 243 of 2025, according to IndexBox. The ministry stated that the adjustments took effect retroactively from October 1, 2026, and are designed to reduce operational burdens on businesses while facilitating the country's transition to electronic invoicing.

Under the amended provisions, transactions between entities belonging to the same tax group will receive a 24-month temporary exclusion starting January 1, 2027, and running through December 2028. During this two-year period, intra-group transactions will be treated as excluded transactions, providing companies with additional flexibility and time to adjust internal systems.

The decision also revises Article 11 regarding data retention. Businesses are required to retain all electronic invoices, credit notes, and associated data for the duration specified by the Tax Procedures Law and make them available to the Federal Tax Authority upon request. However, the ministry removed the former mandate requiring that such data be physically stored within the UAE, shifting regulatory emphasis to data retention and accessibility.

Additionally, the amendments repeal Article 12 and eliminate the definition of system failure from Article 1, removing the previous obligation for businesses to formally notify the Federal Tax Authority of technical disruptions within two business days.

The regulatory updates come ahead of an October 30 deadline, by which companies with annual revenues of at least AED 50 million ($13.6 million) must appoint an accredited service provider.