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.

Published October 22, 2026 Source: Naqood

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Issuing authority: UAE Ministry of Finance
Jurisdiction: United Arab Emirates
Publication date: October 20, 2026
Effective date: January 1, 2027
Stage: Final rule
Official document: Ministerial Decision No. 197 of 2026
Official source: naqood.ae

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The UAE Ministry of Finance issued Ministerial Decision No. 197 of 2026, introducing compliance reliefs under the federal electronic invoicing framework.

Transactions between corporate members belonging to the same VAT tax group are granted an exclusion from mandatory e-invoicing for 24 months, beginning January 1, 2027.

The ministerial decision also lifts the requirement for e-invoice archives to be physically stored inside the UAE. Businesses may store records on overseas servers provided the data remains accessible and producible to tax authorities upon request.

Additionally, the regulation abolishes the prior obligation requiring businesses to notify the Federal Tax Authority of internal system failures within two business days. The measures are intended to reduce operational overhead for large corporate groups and multinational entities preparing for upcoming Phase 1 mandates.