UAE Ministry of Finance Amends E-Invoicing Provisions to Facilitate Business and Ease Operational Burdens

Monday 19 October 2026 07:17

In line with updating the tax system and supporting the country’s business sector, the UAE Ministry of Finance issued Ministerial Decision No. (197) of 2026, amending certain provisions of Ministerial Decision No. (243) of 2025 regarding the E-Invoicing System. These amendments aim to clarify regulatory requirements and offer companies greater flexibility during the implementation phase, supporting an efficient and advanced investment environment.

Temporary Exemption for Tax Group Transactions

The decision grants companies extended time flexibility to adapt to the system, introducing a temporary exemption for intercompany financial transactions between members of the same tax group. This exemption lasts for 24 months starting January 1, 2027, allowing businesses to streamline their operations smoothly without additional operational burdens during this period.

New Flexibility in Data Storage Rules

The decision replaces Article (11) regarding the storage of e-invoices and credit notes data. It obligates taxable persons to retain all e-invoices, credit notes, and associated data in accordance with the timelines specified in the Tax Procedures Law, ensuring they are provided to the Federal Tax Authority (FTA) upon request. The amendment removes the previous requirement for local data storage within the UAE, shifting focus from the physical storage location to ensuring record integrity and accessibility for tax compliance purposes.

Cancellation of "System Failure" Reporting Procedures

To simplify procedures and reduce administrative burdens, the Ministry repealed the provisions related to "System Failure," which included cancelling Article (12) and deleting the relevant definition from Article (1). Consequently, the requirement to notify the Federal Tax Authority of a system failure within two business days of its occurrence has been removed.

It is worth noting that the provisions of this Ministerial Decision officially came into force on October 1, 2026, underscoring the UAE’s continuous commitment to providing facilities to the business sector and building a flexible, attractive investment environment